132 Allocation of total shelf life on a product

Allocation of total shelf life on a product

Reducing food waste is an overall goal in society. Food waste related to exceeding the limit values of shelf life between the parties in the value chain, constitutes a significant part.
Surveys shows that food waste are significantly reduced if the store and the consumer have a larger part of the total shelf life.

It is therefore a goal that the producer and distributor consume the least amount of available time and that the maximum amount of time is exposed to the consumer.

The grocery industry has defined one Table for allocation of shelf life of a product which regulates the responsibility for and expectations the recipient of products has, linked to shelf life. Online players with b2c sales will be defined as retailers when dividing total shelf life.

In case of minor exceedances of the table’s limit values, participants are expected to seek solutions that provide the lowest possible food waste.

The parties are encouraged to develop performance and collaborate to reduce consumption of shelf life.

173 The Modular system

To ensure efficient utilization of production facilities, transport, storage and retail systems, etc., all packaging levels – Consumer Units (CU), Stock Keeping Units (SKU) and Distribution Units (DU) must be adapted to the modular system.

The modular system is based on physical goals; length, width and height.

The starting point for the modular system is a Basic module.
This has the dimensions; 600 mm * 400 mm and must be adjusted to a height as one Standard pallet (this amounts to 1050 mm ex. pallet, 1200 mm incl. pallet.

When optimizing an existing product, a deviation of a maximum of 49 mm is allowed.
This allows a total height including pallet of 1249 mm.

All pallets with total height above standard 1200mm with maximum height of 1250 mm to be agreed bilaterally between supplier and their customers.

Example of optimized pallet with base module 600 x 400 mm

Examples of sizes that are widely used on Stock Keeping Units (SKU), and which are customized to basic modules

 

175 Requirements for the design of the Distribution Unit (DU) and palletization

Requirements for the design of the Distribution Unit (DU) and palletization

The Distribution Unit (DU) is the unit the Stock Keeping Units (SKU) is stacked on / packed in for transport to distributor.

Design of a Standard pallet (Standard pallet and Standard pallet – Low)

A Standard pallet must contain the same product (same GTIN) with a fixed number of Stock Keeping Units (SKU), in a fixed pallet pattern, with equal number of Stock Keeping Units (SKU)on each layer, and where labelling of unique product information on the Distribution Unit (DU) is possible.

The pallet structure shall contain as little excess volume of “air” as possible.

Standard pallet
Maximum pallet height must be 1200 mm incl. pallet. All pallets with total height above standard 1200mm with maximum height of 1250 mm to be agreed bilaterally between supplier and their customers.

Tolerance limit for existing products is 1249 mm.

Standard pallet – Low
Maximum pallet height shall be 600 mm incl. pallet.
Standard pallet – Low is used for low-frequency products and for products with short shelf life.

 

Principles for the construction of a palletpattern, central in calculation of top load weight, ref Top load labelling system.

When creating a pallet pattern, the following applies:

• A packaged Distribution Unit (DU) must be form stable and handling-friendly
• A Distribution Unit (DU) shall withstand regular transport, handling and storage through the value chain
• For single article Distribution Units (DU), all layers must contain the same number of Stock Keeping Units (SKU), and in a fixed pallet pattern
• Requirements for equal number of Stock Keeping Units (SKU) on each pallet / identical layer from pallet to pallet, with the possibility of variation between the layers
• The pallet should not have overhang
• The Stock Keeping Unit (SKU) should be placed on the pallet as it is exposed in the store
• Do not glue between pallet layers or between Stock Keeping Units (SKU) in the same pallet layer
• If a transport label or product label is attached directly to Stock Keeping Unit (SKU), the label must not overlap between 2 Stock Keeping Units (SKUs), either horizontally or vertically
• All pallets with total height above standard 1200mm with maximum height of 1250 mm to be agreed bilaterally between supplier and their customers.

 

Types of pallet pattern

When constructing Distribution Units (DU), the Stock Keeping Unit (SKU) must be placed in accordance with a given pallet pattern. These are referred to as bond stacking and column stacking. Pallets can also be built as a combination of bond stacking and column stacking.

Bond Stacking
Bond Stacking means that the units on every other layer are different, thus locking each other to a greater or lesser extent, but it reduces the compressive strength by approx. 40%.

Example of good pallet utilization and stacking with bond stacking, for good stability.

Column Stacking
Column stacking means stacking packages on top of each other without overlapping with other packages. This form of stacking gives maximum strength in terms of pressure load due to that the corners have better roll stiffness than the sides, but the stack gives poor stability without additional use of shrink wrap, strap, ribbon or similar.

Example of column stacking in the lower pallet layers, and bond stacking on the top layer. Combining the different stacking methods achieves good stack strength on the lower layers while the pallet is locked on top.
This is often a good alternative to intermediate pallet sheets.

Use of plastic to secure the pallet through the value chain

• Shrink / stretch film must not be so tight that the packages are deformed
• Shrink / stretch film must be tight around to the pallet
• No tail of plastic must hang loose
• Shrink / stretch film must not cover the fork lift openings on the pallet
• Shrink / stretch film must not be fastened around the pallet blocks

Use of intermediate pallet sheets
Intermediate pallet sheets must be minimized and used only if this is necessary to ensure quality and transportability of the pallet.
Intermediate pallet sheets are preferred if the alternative to this is intermediate cartons, “Ears” on the Stock Keeping Unit (SKU) or use of corner trims.
Where intermediate pallet sheets are used, the following requirements apply:

• The pallet sheet to be used for standard euro pallet should have dimensions of 750 mm * 1150 mm, ie 50 mm less than the length and width of the current load carrier
• The pallet sheet must be of rigid cardboard or corrugated cardboard.
  • The stiffness of the pallet sheet must pass the following test: If the short edge of the plate hangs 500 mm from a flat surface (eg a table), the pallet sheet must not bend down more than 50 mm, see illustration below
• No more than one intermediate pallet sheet between each layer
• The intermediate pallet sheet must not be fastened and be flat
• Only a whole intermediate pallet sheet, i.e. without holes or perforations, shall be used
• In case of questions, one is encouraged to contact the packaging supplier

See also Automated storage at distributor – greater understanding of the depalletization process

Example of intermediate pallet sheet that does not meet quality requirements. The intermediate pallet sheet is a thin paper and is not suitable for automatic warehouse systems

Example of what happens when using “thin paper” intermediate pallet sheets.
The sheet is hanging down in the robot. It blocks for sensors that check that the layer is separated from the rest of the pallet. The robot will stop, and manual error correction must be carried out before the machine can be restarted.

 

Example of pallet with intermediate pallet sheets, too big – hanging on outside the pallet.
Is not suitable.

 

Intermediate pallet sheets with holes. Is not suitable.

 

156 Definitions – Combined target measures

Definitions – Combined target measures

The priority target measures can be combined in different ways, to create Combined target measures.

STAND has defined 3 examples:

Target measure Delivery Order – Availability

The target measure “Delivery Order” gives the proportion of the orders that are properly delivered.

Definition:

Quantity of complete orders delivered	= Level of Order Delivery
Total number of orders ordered

 

A complete delivery order contains all ordered sales units, in the correct quantity

Availability will primarily be measured as the priority target measure “Proper Quantity – Availability”, but to calculate the combined measurements below, it is a prerequisite that “Delivery Order – Availability” is calculated.

Complete orders at the right time – Availability & Reliability

The target measure describes both accessibility and reliability in the interaction.

The target measure is composed of the target measures:

• Delivery of Order – Availability
• At the right time – Reliability.

Definition:

Availability expressed per order –  Quantity of late or early delivery orders	= Complete orders at the right time
Total quantity of orders

 

Only one error per. order is counted

The measurement of “Complete Orders at the Right Time” shall be done at the place of arrival. At Incoterms Ex Works delivery terms, this is the supplier’s ramp

The perfect order

This is the most demanding target measure and measures all types of deviations regarding complete orders.

The target measure is composed of three previously defined target measures:

• Delivery of Order – Availability
• At the right time – reliability
• Correct administration – Security

Definition:

Quantity of complete orders delivered – late or early delivery orders – Orders with missing or incorrect documents – Orders with credit / debit notes	= The perfect order
Total quantity of orders

 

Only one error per. order is counted

If both the supplier and the customer’s obligations are considered in the target measure, the target measure represents the performance that the parties create in common.

Examples of calculation of service level for combined target measures can be found in the document

Examples of combined target measures

185 Communication and data exchange

The supplier and the retail chain shall keep each other updated in all circumstances that may be relevant for successful assortment change.

Sales and inventory data are made available as soon as they can be communicated.

Target measures

Service Level – for wholesaler and retailer – are measured and exchanged.
For definition of service level refer to Service level – Purpose, types of target measures and assumptions with any clarifications in the retail chain / supplier agreement.

In case of significant deviations in service levels, assortment coding and forecasts are therefore natural reference points.

184 Routine for delays from supplier / Private label

Routine for delays from supplier / Private label

Any delay must be notified immediately with the information available at the time of notification. Message must be sent to the department of category /purchase and the department of logistics.

In case of delay, a distinction is made between notified and unannounced.

Read more about:
Routine of notified delays (A7 in timeline)

Routine of unannounced delays

Current deadlines are available in section for downloads.

193 Feedback on listing / main assortment and confirmed ability of delivery (A3-A6 in timeline)

Feedback on listing / main assortment and confirmed ability of delivery (A3-A6 in timeline)

The feedback from the retail chain should include:

• Assortment classification per profile chain (new and old classification)
• Selected input and phase method (time-managed or inventory-managed)
  • Included the list of products that are linked
• Products that are delisted
• The time of feedback about assortment is no later than U-8.

If the retail chain’s assortment selection of products leads to a supplier deciding to cancel or postpone launch, this should be reported to the relevant retail chain’s category manager by latest Friday at U-6.

For products being discontinued, any deviations from ordinary down sale must be clearly communicated in a reasonable time.

In case of product shortages at the supplier, the volume as confirmed in U-6 (A4 in timeline) is used as the basis of deviation handling ref.

Routine for delay from supplier / Private label

However, order confirmation of orders (A6) delivered no later than Tuesday in U-3 is to be considered as a binding agreement. Order confirmations will be given Wednesday U-3 (A6.1). Current deadlines are available in section for downloads.

192 Master data registration and product presentation follows a timeline

Master data registration and product presentation follows a timeline

Products distributed over distributor, via Crossdock or directly to retailers following the same path.

The timeline indicates the very last deadline for completion of the respective activity.
Many of the activities are sequential, where startup assumes that previous activities have been completed.

Where possible, encourage mutual involvement as early as possible in the process to reduce costs and uncertainties. See also Communication and data exchange

The retail chains will operate with different forms, but they largely contain the same.

Current deadlines are available in section for downloads.

155 Definitions – Priority target measures

Definitions – Priority target measures

The target measures are based on three important dimensions in the term «service level»:

• Quantity – availability
• Time – reliability
• Administration – security

The priority targets measures should be followed and evaluated continuously with focus on level, trends and development.

Target measures Correct quantity – availability

The target measure “Correct quantity” measures availability as precision in quantity delivered.

Definition:

Number of delivered sales Units	= Availability
Quantity of ordered sales Units

 

The quantity ordered is the amount that the customer initially ordered.
Not delivered quantity represents deviations in delivery.

Target measure At the right time – reliability

The target measure “At the right time” measure reliability as precision in delivery time.

The target measure is used to measure compliance with time limits defined in the agreement between the parties.
The target measure can be used along several dimensions in the value chain.
Examples may be if orders are sent at the right time, if order confirmations are sent at the right time, if delivery is picked up at the right time, if Despatch Advice is sent at the right time, etc.

Definition (with example order):

Number of late or early delivery orders	= Reliability
Total quantity of orders

 

Delayed or premature is determined by whether exchange / delivery is within the agreed time frame.
At Incoterms Ex Works delivery terms, the assessment of the supplier’s reliability is on the supplier’s ramp.
The delivery is received when the order / delivery etc., is acknowledged for.

Target measures Correct Administration – Security

The target measure “Proper Administration” measures security as compliance between what is ordered in the order and what has been delivered and has been invoiced, that is, the correct product without errors and with the correct documentation.

Definition:

Quantity of orders without credit / debit notes	= SAFETY
Total quantity of orders

 

Correct administration means that Despatch Advice, shipping notes, invoices etc. are complete and error-free in relation to the delivery.
Only credit and debit notes affecting physical delivery are included in the measurement.
The target measure can also be used to measure the quality of orders from the customer.

Examples of calculation of service level for priority target measures can be found in the document

Examples of priority target measures

320 Guideline for labelling 2D barcodes on Consumer Units

Guideline for labelling 2D barcodes on Consumer Units

 Background

The need for information both in trade and to the consumer is constantly increasing. Today’s solution using the EAN-13 barcode does not provide opportunities for additional machine-readable information. The need for more information has led to products that have more than one bar code applied to Consumer Units, which creates challenges both at the checkout point (POS) and in the value chain. Often this is a QR code with a link to a website where the consumer can find more information.

In parallel with the need for more communication with consumers, a need is emerging at the retail level to gain more control over the traceability and expiry date of the products, to ensure safe food and reduce food waste. This is happening in most countries in the world. In Norway, GS1 Norway, together with Matvett, established a working group consisting of representatives from brand suppliers, grocery chains, system suppliers and other stakeholders to discuss these issues. These guidelines are a result of this work and have now been included as part of STAND’s framework for the Norwegian grocery industry.

Purpose of the use of 2D barcodes in Norwegian grocery

Although 2D barcodes are not the only solution to the challenges, this is the data carrier of the future, where the need for information is greater than just identifying a product with GTIN. 2D barcodes take up less space, can contain more information about the product, are a tool for reducing food waste and increase food security, are more flexible, and can be read by mobile phones. This provides an opportunity for increased consumer contact. In addition, 2D barcodes can solve all needs for information exchange throughout the supply chain, including being able to link to websites.

Different types of 2D barcodes

There are many different 2D barcodes, but only some of them can be used in connection with the GS1 standards, which are the standards used by the Norwegian grocery industry. The different 2D barcodes are also used for different purposes. This is regulated in GS1’s regulations, General Specifications. The difference between the different 2D barcodes helps to determine what they can be used for.

QR Code

The QR Code barcode is in the GS1 system defined to be used only with GS1 Digital Link URI syntax. In practice, this means that this should only be used for communication with the consumer via a URL that links to a website with more information that the consumer can read with his mobile phone. QR Code has grown to become the preferred barcode for consumer communication and most mobile phones today are able to read this with the built-in camera app in the phone. This means that the threshold for reading QR Code is low among consumers, and it is less need for training and communication to put functionality related to QR Code into production. Here you can find more information about QR codes.

 

GS1 Datamatrix

GS1 Datamatrix is ​​a variant of Datamatrix that uses GS1 Element String syntax. This is the use of AI (Application Identifier) ​​structure. This is a way of structuring the information in the barcode so that everyone who reads the barcode understands the content in the same way regardless of the order in which the information is printed and how much information is in the barcode. According to GS1 General Specifications, GS1 Datamatrix is ​​only permitted for use on Consumer units with variable measure and prescription medicines. However, it is permitted to use it in limited pilots, for test purposes and in closed value chains under controlled conditions. The advantage of GS1 Datamatrix is ​​that it has high compression and error correction. It can be printed both square and rectangular so that it can fit where there is not enough height, but enough width to get the information needed without compromising on size and thus readability. However, the rectangular version has a limit on the amount of data that can be used. GS1 Datamatrix is ​​the only permitted barcode on prescription drugs. Here you can find more information about GS1 Datamatrix.

 

 

 

Content in barcode

A minimum requirement for information attributes has been defined for POS purposes.

This is:

• GTIN
• Best before date or Expiry date
• Batch/lot nr.
• Weight (for variable measure products).

It is possible to use other Application Identifiers for internal and/or external needs, but this is then up to each individual actor to use.

319 Actions to be made in case of an incident or crisis

Actions to be made in case of an incident or crisis

Alarm / Notification

An incident can occur in all steps of the value chain, at the consumer, retailer, distributor or at the supplier itself. It is important that the supplier is notified as soon as possible.

Notification of an incident shall be given to one alert point at each operator. The alert point should be agreed in advance and always be staffed / available.

The industry has decided that for products registered in the Tradesolution EPD base, Tradesolution ReCall portal should be used for blocking, recall or withdrawal. Access is available at epd@tradesolution.no

For products not registered in the Tradesolution EPD base, a Notification schema for recall, withdrawal or blocking of a product may be used provided that this has been agreed between the supplier and the distributor/wholesaler. Notification schema can be downloaded from Downloads.

Required information to follow an alarm / alert

To identify the scope of the alarm / alert, the product’s GTIN / EPD, best before date, batch / Lot number and SSCC on affected pallets must always be stated. This applies regardless of whether the product is registered in the Tradesolution EPD base or not.

By using the portal, the supplier gets / is secured

• Easier, faster and more efficient registration, as well as quality assurance of the necessary product information
• Ensure that necessary information is distributed quickly and efficiently to all relevant recipients
• Simplifying the dialogue between the parties
• All dialogue and information exchange is done in the portal and can be logged and stored.

Here you can see an animation that shows how a recall can be done in practice, using the ReCall portal.

The ReCall portal can also be used in situations where you want to withdraw products with quality defects.

Distributors have built their own systems and routines for alerting crisis situations and blocking the products at their distribution warehouses and retailers. This is not part of the ReCall portal.

The following routine applies when registering an incident or crisis

1. Register a new case
2. Determine severity and health hazards
3. Notify affected parties / recipients
4. Register distribution and what to do with the product
5. Register tracking information for affected batches / lots
6. Describe further actions to be taken, with press releases and other additional information
7. Closing the case

The practical implementation of the routine is described here Routine when registering an incident or crisis, in the Tradesolution ReCall portal.

Conclusion

Through the guidelines, the industry contributes to satisfying consumers’ demands and expectations for safe products, provided that an overall industry complies with the guidelines.

Should an incident or crisis occur, there are routines and tools that, in a simple, fast and secure way, limit incidental damage.

An accurate and limited recall or withdrawal will be possible.

This reduces costs for all parties in the value chain and minimizes potential reputational loss.

316 Requirements for tracking information and labeling

Requirements for tracking information and labeling

The main purpose of the tracking information is to lay the groundwork for effective blocking, withdrawal or recall of products.

Central tracking information is:

• GTIN (Global Trade Item Number) – Unique identification of products
• GLN (Global Location Number) – Unique identification of trading parties, pick-up points, delivery points etc.
• SSCC (Serial Shipping Container Code) – Unique identification of load carriers / pallets
• Batch / lot number – A unique batch or lot number defined by supplier / manufacturer
• Shelf life – Either Best Before date or Last Consumption Date

It is a requirement that the products are labeled to enable tracking.

The marking must be affixed to the product packaging and legible.

The following applies to finished goods traded between supplier and distributor / retailer:

Information to be marked:

• The name of the supplier
• Product name/description
• Product number identified with a GTIN.
• Best before date / last day of consumption date, if required
• Batch / Lot number, if required

Load carrier (for example pallet) shall be marked with SSCC.

The sender must in his system have an overview of which recipient the product was sent to, and also the recipient must have an overview of which sender the product was received from. Both sender and recipient must be identified with GLN.

Sender shall in his system register:

• Quantity sent
• Shipping Date
• Reception date (if known)

Recipient shall in his system register:

• Quantity received
• Shipping date (if known)
• Reception Date

The following applies to raw materials and other inputs:

• GTIN should be used for identification of inputs / raw material, if available
• GLN should be used for identification of sender / suppliers, if available

More about tracking information and how the product can be tracked in the value chain is described here Recommended traceability methods in the value chain.

318 Prepare a Contingency Plan

Prepare a Contingency Plan

If unwanted incidents or crises occur, it is important to be well prepared.

Possible scenarios for what might arise should be thought through and how this should be handled.

A Contingency Plan must be prepared that will allow you to cope with the situation quickly, correctly and effectively. The Contingency Plan must be accurate and accessible to all involved at all times.

The Contingency Plan includes:

• To designate a crisis team, responsible for traceability, recall and withdrawal.
• Internal and external contact lists to quickly reach everyone involved or affected by any incident or crisis
• Training and exercises in the company’s routines and instructions on how to handle incidents or crises. Exercises should be as realistic as possible and carried out with the closest business partner in the value chain
• This must be easily accessible and may consist of, for example
  • a brief overview of crisis teams with their roles and responsibilities
  • the company’s internal guidelines for handling incidents / crises
  • contact lists
  • other relevant documentation that is important to have access to should an incident or crisis occur

See more about the Contingency Plan here Design and contents of a Contingency Plan.

317 Prepare a Risk Analysis

Prepare a Risk Analysis

At the heart of the legislation is the duty of each company to carry out a risk analysis of the health risks the products represent and how the company will relate to this in terms of traceability.

The purpose of the analysis is to reduce / prevent risk through

• Withdrawal of products from the market, or
• Efficient notification or recall of products from consumer

This assumes that the parties are aware of the risks the products may pose and have a preparedness that ensures that they react quickly, correctly and effectively in unwanted incidents. A Risk Analysis should therefore be performed on new products based on an intended relevant incident, so that it can be implemented as quickly as possible should a real incident occur for the product.

The risk analysis consists of three elements that both the government and industry should work on in an equal way:

• Risk Assessment
• Risk Management
• Risk Communication

See more about risk analysis here Design and content of a Risk Analysis.

147 Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)

Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)

The purpose of a standard for labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU) with subsequent electronic data interchange (EDI) is to:

• Achieve an efficient flow of products from manufacturer to consumer
• Ensure traceability through the value chain, which is important in case an event or crisis occurs which requires a recall or withdrawal of the product

The basis for this is the labelling of each Distribution Unit (DU) with a unique SSCC.

This code is the main key in the electronic Despatch Advice and is linked to information about which GTIN which the Distribution Unit (DU) consists of, the number of Stock Keeping Units (SKU) batch / lot number and shelf life information if applicable.

SSCC is the most important key for traceability of Distributions Units (DU), see Recommended way to track and trace a product in the value chain.

For that reason SSCC shall not be reused until after a minimum of 6 years.

Recommended way to track and trace a product in the value chain

Efficiency and traceability are achieved primarily through:

• Synchronization of product information between the various parts in the value chain.
  The purpose is for all players to obtain correct and coherent product information about the products. Between suppliers and retail chains in the Norwegian groceries sector the EPD database is used for the registration, quality assurance and distribution of product information.

• Electronic Data Interchange (EDI) between the actors.
  The purpose is to reduce manual operations and reduce lead time in the value chain. The most widely used EDI messages are order, order confirmation, Despatch Advice and invoice.

• Standardized labelling of outer packaging.
  The purpose is to contribute to faster and more efficient shipping, distribution and receipt of the products. A common labelling concept for the grocery industry is used here; GS1-128.

To ensure rational product and information flow in the distribution chain, STAND recommends a uniform labelling of Stock Keeping Units (SKU) and Distribution Units (DU).
This simplifies the labelling of the manufacturer / supplier, shipment by shipper / freight forwarders and merchandise at distributor / store.

This labelling concept also applies to types of transport units other than pallets.

For fish and fish products, the following applies:
STAND has decided to refer to Norwegian Standard NS17099:2020 “Information technology — Fishery and aquaculture products — Requirements for labelling of distribution units and pallets in the trade of fishery and aquaculture products” for products that fall under this category. This standard replaces todays NS9405: 2014 “Fish and fish products. Requirements for labelling of distribution units and pallets in the trade of fish and fish products», and is valid as from 30. September 2020.

It can be ordered from Standard Norway.

139 Valid pallets

Valid pallets

This is an animation that show what pallets are valid for distribution.

Requirements specifications can be downloaded here:

Requirements for approved EUR-pallets
Specification for reusable 1/1 plastic pallet
Specification for reusable 1/2 plastic pallet
Requirements specification for reusable 1/3 plastic pallet (from NLP)
Specification for reusable 1/4 plastic pallet
Requirements Specification reusable 1/2 wooden pallet
Requirements specification for 1/3 and 1/2 disposable cardboard pallet

174 Placement of Stock Keeping Unit (SKU) on pallet

Placement of Stock Keeping Unit (SKU) on pallet

It is a prerequisite for maintaining strength, that Stock Keeping Units (SKU) are placed within the edges of the pallet with a small margin.
Devices placed on or outside the edge can cause damage with subsequent reduced carrying capacity / risk of injury.

The pallet area should be utilized as best as possible with products. By following the Modular system optimal use of the pallet is ensured and reduces the risk of the load shifting during transport.

Overhang is not accepted.

172 Requirements for design of Stock Keeping Unit (SKU) and packaging

Requirements for design of Stock Keeping Unit (SKU) and packaging

Stock Keeping Unit (SKU) is the unit the retailer buys.
Stock Keeping Unit (SKU) occurs in various forms, such as carton, reusable box / pallet box, intermediate carton and such.

The most important task of the Stock Keeping Unit (SKU) is to secure Consumer Units (CU) from the time of manufacturing until it is finished exposed in a shop shelf.

The number of Consumer Units (CU) in a Stock Keeping Unit (SKU) is determined by the manufacturer, preferably in dialogue with the distributor / retail chain.

The Stock Keeping Unit (SKU) must be adapted to the modular system, see Modular system

for picking and grouping of products can be done as efficient as possible.

Case fill rate shall be calculated. This is described in Case fill rate

Stock Keeping Unit (SKU) must be designed to withstand the strain required in the value chain.

Automatic warehouses require that Stock Keeping Units (SKU) must be packed in a way that it can be lifted, stacked, clamped and handled with different mechanized devices, see Automated warehouse at distributor – greater understanding of the depalletization process.

Design requirements and packaging

When designing a Stock Keeping Unit (SKU), it must be based on the modular system.
This means that the Stock Keeping Unit (SKU) should not be less than 100 x 150 mm and not more than 400 x 600 mm.

Example of best practices

Modular Stock Keeping Unit (SKU).

 

Example of an inappropriate Stock Keeping Unit (SKU)

Stock Keeping Unit (SKU) is not adapted to the modular system.

The size of the Stock Keeping Unit (SKU) must consider the size of the shelf space for the current product group.
The short side of the Stock Keeping Unit (SKU) should be front where appropriate.

There must be a simple and clear opening guide, preferably with illustration.

The packaging must be opened without using a knife.

When the Consumer Units (CU) is exposed in the Stock Keeping Unit (SKU), the least possible of the Stock Keeping Unit’s (SKU) packaging should be visible when exposed in the store shelf.

Stock Keeping Unit (SKU) must not weigh more than 15 kg.

Stock Keeping Unit (SKU) must be in recyclable cardboard or plastic.

Example of an inappropriate Stock Keeping Unit (SKU)

Lid / plastic film is missing, which may cause Consumer Unit (CU) to fall out during internal transport.

Plastic boxes – all variants – must be considered to work in automated warehouse handling.

Stock Keeping Unit (SKU) must be form stable.

Example of best practices
Stock Keeping Unit (SKU) is form stable.

Example of best practices
Form stable Stock Keeping Units (SKU) that embraces close to its content and is strong enough to not deform.
Resists load on inbound transport (2 pallets in height), as well as handling through the value chain.

Example of an inappropriate Stock Keeping Unit (SKU)
Not form stable. Do not resist strain on inbound transport (2 pallets in height), as well as handling through the value chain.

Stock Keeping Unit (SKU) that is only wrapped in plastic foil must have a tray / trough below.

Example of best practices
Stock Keeping Unit (SKU) on tray / trough with plastic wrap.

Stock Keeping Units (SKU) must have straight sides.

Example of best practices
Stock Keeping Units (SKU) with straight sides.

Glue quality and amount of glue on Stock Keeping Unit (SKU) must be such that glued surfaces do not loosen.

Example of best practices
Glue quality and amount of glue is such that glued surfaces do not loosen.

Constructed example of an inappropriate Stock Keeping Unit (SKU)
Too little glue / too few glue points are included that flap gaps with subsequent stops in automatic warehouse systems.

The Stock Keeping Unit (SKU) should be stackable and “ears” should only be used where it is necessary for stability.
Should “ears” be used, these should not exceed 5mm and should not be used in conjunction with intermediate pallet sheets.

Stock Keeping Unit (SKU) should not have loose lid.
The lid must be attached to the tray / trough in such a way that it does not loosen during handling. It is recommended to use glue points or a locking mechanism.

The Stock Keeping Unit (SKU) must have a center of gravity relative to the base that allows it to be handled on conveyor belts.
The height / width ratio should be below 1.7 to ensure that the products do not fall under internal transport in an automatic warehouse.

Example of best practices
The ratio height / width is below 1.7.

 

Example of an inappropriate Stock Keeping Unit (SKU)
The height / width ratio is over 1.7, which means that the Stock Keeping Unit (SKU) can fall during internal transport.

Stock Keeping Unit (SKU) exposure front should not be less than 30 mm, regardless of the chosen solution.
The information on the Consumer Unit (CU) must be visible.

Packaging capacity

During the design of the product and packaging it must be considered that the outer dimensions of the finished Stock Keeping Unit (SKU), tray and otherwise, under the load of the above-mentioned product packaging, due to bulging, is within the margin. In practice, this can be from 0.5 to 1.0 cm.

Optimal transport requires the use of load capacity of the transport systems (weight and height).

Generally, the packaging should be able to carry a similar pallet (2 identical pallets) without any breakage or clamping damage during transport and storage.

Exceptions from this must be specified and labelled on the (Distribution Unit (DU).

Method of calculation of carrying capacity is described in Top load labelling system.

The packaging shall be able to withstand shipping with other products for shipping to the store in a rational way.

In order to achieve the industry’s common goal of efficient flow of products, reduced negative environmental impact, promoted sales and reduced losses, it is important to focus on:

• Top load
• Stackability
• Module customization

Especially for reusable boxes / pallet boxes
Basically, Stock Keeping Units (SKU) is desired in cardboard, or in combination with plastic.

Reusable boxes are an alternative to Stock Keeping Units (SKU) in corrugated paper but must be agreed bilaterally.

Particularly for Intermediate cartons
The use of Intermediate cartons should be kept as low as possible and must be agreed bilaterally.

Intermediate cartons are accepted in cases where the Stock Keeping Unit (SKU) solution is not possible because the Stock Keeping Unit (SKU) does not meet the requirements for strength, stability or size and where the use of intermediate pallet sheet on pallet is not possible.

The intermediate carton must be labelled so that it clearly differs from the Stock Keeping Unit (SKU) and shall not weigh more than 15 kg.

170 Requirements for design of Consumer Unit (CU)

Requirements for design of Consumer Unit (CU)

Consumer Unit (CU) is the unit the consumer purchases in store.

Consumer Unit (CU) must be designed to optimize use of shop shelves and other furnishings. In addition, the information on the Consumer Unit (CU) should be visible even when the package is on a tray on the shelf.

Consumer Unit (CU) should be easy to open and to use.

Consumer Unit (CU) should be, included Stock Keeping Unit (SKU) and Distribution Unit (DU) adapted to the modular system, see Modular system

Unnecessary volume not containing the product itself in the packaging should be limited to what is necessary to protect the product. If necessary, secure against shrinkage (small, valuable Consumer Units (CU)).

Quantity (packing content) in Consumer Unit (CU) is determined by manufacturer, preferably in dialogue with distributor / retail chain.

Case fill rate shall be calculated. This is described in Case fill rate

On new products, it is expected that the case fill rate is higher than the average of the product group to which it belongs.

Measurement of the case fill rate related to the product launch windows was carried out by DMF until 2018. When switching to a new product classification system, historical data could not be compared, as the timeline and product groupings from 2014 were changed.

Efforts to increase the case fill rate in the grocery industry are important from both an environmental and efficiency perspective.

In collaboration with the industry, Tradesolution has developed some new reports for measuring the case fill rate in the grocery industry. Suppliers and retailer chains that have access to the EPD base can see the case fill rate for the products they have access to directly in the database. Here you can see the actual case fill rate on basic product (BASIS-level) and calculated case fill rate for the packaging levels above.

Log in her  and feel free to contact the EPD base helpdesk at epd@tradesolution.no if you have further questions.

169 Optimization of Consumer Unit (CU), Stock Keeping Unit (SKU), Distribution Unit (DU) and packaging – central to the development of new/changes to existing products

Optimization of Consumer Unit (CU), Stock Keeping Unit (SKU), Distribution Unit (DU) and packaging – central to the development of new/changes to existing products

The grocery industry has a common goal of being able to:

• Streamline product flow
• Reduce environmental impact
• Promote sales
• Reduce shrinkage

when products are being developed/changed.

To achieve this, it is crucial to standardize and optimize packaging on the product at all packaging levels – Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU).

STAND has therefore prepared a standard for this, which applies to all packaging levels.

Audience for the standard is managers and everyone who works with product development, assortment and logistics in the value chain.

By complying with the standard, processes in the value chain are optimized and gains can be extracted in a number of areas such as:

Warehouse

• Form Stable Distribution Units (DU) and Stock Keeping Units (SKU)
• Correct quality of Distribution Units (DU) and Stock Keeping Units (SKU) for efficient handling through warehouse

Outbound transport

• Withstand double stacking
• Avoids shrinkage and damage

 Inbound transport

• High case fill rate
• Double stacking of pallets
• Avoiding transport damage

 Shop

• Effective replenishment
• Sales-friendly, good visibility when Stock Keeping Unit (SKU) is used to expose products
• Optimal use of shelf space
• Reduced food waste, with correct number of Consumer Units (CU) in Stock Keeping Unit (SKU)
• Reduced food waste, utilising 2D barcodes with dynamic information

 Consumer

• Optimal and user-friendly packaging
• Clear, accurate and complementary product declaration
• Recycling labelling
• Extended product information utilising 2D barcodes

In addition, optimization of packaging through compliance with the standard will reduce environmental impact at all stages in the value chain, as part of the industry agreement with the authorities.

The packaging must be:

Easy to sort
In order for the packaging to be able to be recycled, it is important that it is sorted correctly by the end user and thus enters the correct recycling stream. There are a number of steps you can take when designing the packaging, which increase the likelihood that it will be sorted correctly. This information is summarized at https://www.grontpunkt.no/design-for-kildesortering

Recyclable
In order for the packaging to be material-recycled and become new raw material that can be used to make new products, it is important that this is taken into account in the packaging design and material selection. To find out how recyclable the packaging is and what steps can be taken to improve this, you can enter the packaging in https://kalkulator.grontpunkt.no

In monomaterial if possible
The easiest way to make it more intuitive for the end user to sort the packaging correctly, and to make it easier to recycle the packaging, is to ensure that the packaging only consists of one material.

From recycled material if possible
Most packaging is recycled, but there is too little demand for recycled material. By using recycled material when developing new packaging, you ensure that the circular material flows work and thus both reduce the need for virgin raw material and the environmental burdens these entail.

Important notice
All products must follow the GS1 Allocation rules. (chapter 2.4). These are international rules and are mainly based on the fact that a change of over 20% to a physical dimension, on any axis, or gross weight, requires assignment of a new GTIN.

In addition, the following applies to Norway:

• For products registered in the Tradesolution EPD base, approval of the grocery chains is required to keep existing GTIN on a product, also for changes below 20%
• Frequent cumulative changes, without changing the GTIN, in avoidance of the 20% rule is an unacceptable practice. Trading partners should be notified about all dimensional changes. Cumulative changes might cause problems for trading partners and may obstruct the transport and supply of a product
• Local, national or regional regulations may require more frequent GTIN changes. Such regulations have precedence over the rules provided within the GTIN Management Standard

Exception from the standard
Under special conditions, exceptions from industry standards and guidelines may be relevant.
Exceptions must be agreed separately between the parties concerned and shall be described in Checklist for optimization of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU).

The check list can be downloaded as a separate document.

Mandate

MANDATE AND ROLE FOR STAND – STANDARDIZATION COMMITTEE FOR THE NORWEGIAN GROCERY SECTOR

Background

The committee was established in 1998.

The committee consists of four representatives and four substitute members from each of the organizations DLF (Grocery suppliers of Norway) and DMF AS (Norwegian Grocery Sector’s Environmental Forum). In addition, GS1 Norway has a role as observer. The leader and secretariat are allocated to DLF and DMF and rotate every second year.

The committee has prepared recommendations for the grocery industry, which can be found on STAND’s website www.stand.no .

Mandate

STAND will develop and recommend relevant framework and guidelines contributing to sustainable and effective supply chains in the Norwegian grocery sector*.

This includes topics relevant for the flow of goods and information, such as:

• Shared master data, transactions, eCOM, and track & trace
• Packaging and labelling
• Load carriers and distribution

Matters related to sustainability and food waste must be emphasized in particular.

The committee’s work should as far as possible be based on international standards.

STAND’s recommendations, in terms of standards and guidelines, will be valid when incorporated in the bilateral agreements between the parties.

* The guidelines are developed for use within the grocery sector. Relevant topics are also suitable for use within convenience and catering.

Form of cooperation

• STAND operates its activities according to a continuous work program. DLF and DMF propose suggestions on issues that need to be addressed. STAND will strive to ensure that all issues of common interest affecting the entire value chain from manufacturer to consumer are coordinated through STAND. Project and working groups are created are established when needed. If either DLF or DMF want to conduct an internal project before it is presented to STAND, then the counterparty should be informed of this work as early as possible.
• STAND produces its own recommendations and coordinates external recommendations that require the approval of DLF and DMF.
• STAND puts approved recommendations into practice by publishing on the internet and seminars. The recommendations have a common design to make it clear that they are approved by DLF and DMF.

The standardization process

The standards must be of high quality and developed to be generally accepted in the grocery industry. The work is based on the following routines for the preparation, implementation and follow-up of all recommendations:

• STAND defines the work and establishes a project or workgroup
• Determining the purpose of the standard
• Evaluation of cost/benefit of the initiative.
• Anchoring of interested parties through hearings
• Quality assurance in DLF and DMF’s workgroups
• Determination of implementation date for new standards
• Audits will be completed by 1^st September and published
• STAND approves the standard and recommends approval by DLF and DMF

The standards must be open and voluntarily in the grocery industry. STAND’s activities and recommendations must always be within the framework of current competition law.

Finance

Each party cover their own costs of participation in STAND.

Projects launched by STAND are financed equally by industry and retail, invoiced by Tradesolution.

Possible participation in international forums on behalf of STAND is agreed separately.

Coordination in the industry

There are currently several persons and committees working with standardization within, or in connection with the grocery value chain. STAND has the responsibility to make the best use of resources through coordinating inputs and ideas, avoiding duplication and strengthening implementation through focusing on measures by uniformly recognizable presentation.

STAND’s standards are posted on the website and other standards such as GS1 are linked from STAND’s website, so industry representatives can find unified standards and guidelines via one single point of entry: www.stand.no

Approved by the board in DMF 30.6.05 and by the board in DLF 31.8.05.
Latest revised September 2023.

The parties may make changes to the mandate if necessary.

176 Checklist for optimization of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU)

Checklist for optimization of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU)

The checklist is a declaration that the standard is complied with

Download active pdf here.

 

 

 

205 EDI Exchange Agreement

EDI Exchange Agreement

Download the exchange agreement here

322 QR code with GS1 Digital Link

Barcode syntax
The use of GS1 Digital Link

GS1 Digital Link is a standard that has been developed to give consumers an opportunity to find more information about a product by reading the barcode on an item with their mobile phone. GS1 Digital Link can also provide manufacturers with information about where the product is read, in which situations it is read and other additional information about consumer behaviour.

The GS1 Digital Link standard defines several ways to do this.

One can either have an app that is connected to a resolver (a kind of translator) that interprets the content of the barcode and adapts it to what desire or need there is for information in the setting the barcode is read. If you use a resolver, you can read all types of barcodes that contain a GS1 identifier (GTIN, GLN, SSCC, etc.).

You can also use the mobile phone’s built-in camera app to read barcodes that contain a GS1 Digital Link structure, but this sets requirements for the type of barcode used. To be sure that all smartphones on the market can interpret the information, one should use QR Code. This is the barcode type supported by most phones.

In the barcode you enter a URL in addition to GTIN and any additional attributes.

When the barcode is read by the camera app on a smartphone, you will be routed to the website with information about the product that is entered in the barcode.

If you use an app with a resolver, the URL that is entered in the barcode can be replaced with the URL that is entered in the resolver so that the reader can get the corrected information depending on which options are available in the app used.

 

 

Size of the barcode

The physical size of a 2D barcode varies according to the amount of information contained in it. The resolution of the barcode (X-dimension) must be a minimum of 0.375mm and a maximum of 0.990mm when using GS1 AI syntax in the barcode on Consumer unit.

The resolution of the barcode (X-dimension) must be a minimum of 0.396 and a maximum of 0.990mm when using GS1 Digital Link URI syntax in the barcode on consumer unit.

Quality and life span of the barcode
2D barcodes are verified according to the ISO standard ISO / IEC 15415. This is an international standard that describes the quality requirements for barcodes and how easy they are to read. Highest grade is 4.0 / 20/660. The minimum requirement is 1.5 / 20/660. The numbers indicate; character / aperture / wavelength of the light illuminating the barcode.

The service life of a barcode depends on the type of label material used and where / how the label is placed on the product. Label material / printing method must be chosen that has at least as long a shelf life as the assessed shelf life of the product to be labelled.

Placement of the barcode on the product

If 2 barcodes are placed on the product, a linear and a 2D barcode for use in POS or a linear and a GS1 Digital Link for consumer engagement or two 2D barcodes for both POS and consumer engagement, efforts should be made to place them adjacent on the packaging. This ensures that the barcode is read regardless of which barcode contains what you want to read. Programming the barcode scanners to ignore the type of code that should not be read will prevent erroneous readings.

Readability of the barcode

The readability of the barcode depends on the size of the barcode, the type of barcode reader and the distance from the barcode to the barcode reader. If the requirements for size and quality are followed, this is in accordance with industry standards and the barcodes can be read at a normal distance with normal equipment.

QR Code with GS1 Digital Link syntax for consumer engagement

For those manufacturers who wish to have a structured way of communicating with consumers, it is QR Code with GS1 Digital Link structure that should be used. By using GS1 Digital Link structure with GTIN coded in, it opens for all links in the value chain to provide targeted information to the person scanning the barcode. The consumer can obtain all available information from the manufacturer and / or the trade link. This is a barcode that can be read by most smartphones with its built-in camera app. In addition, consumers are used to the fact that QR Code can be read with the smartphone and give them more information. By splitting the information to be used for POS purposes and consumer-oriented communication, the QR Code with information to the consumer can also be pre-printed on the packaging and this will reduce the need for changes to the production equipment.

QR Code with consumer-oriented information can also be placed on the packaging together with the current EAN-13 barcode where it is not yet possible or desirable to have a 2D barcode with dynamic information for POS purposes.

321 GS1 Datamatrix Element String barcode

Barcode syntax – The use of GS1 Element String (Application Identifiers (AI))

GS1 application identifiers (AI) are numeric prefixes used in barcodes to define the meaning of and syntax of information elements. AIs makes it possible to separate different information elements from one another in a barcode. In the text below or next to a barcode, these appear as numbers in parentheses and the content of the individual AI follows accordingly. A GS1 barcode is required to use AIs.

GS1 has defined over 100 application identifiers (AIs). Each application identifier is a standard two-, three- or four-digit number code. For the full list of GS1 application identifiers and their definitions, see section 3.2 of the GS1 General Specification.

Barcode with AI 15 for «Best before date».

Barcode with AI 17 for «Expiry date».

Barcode size

The physical size of a 2D barcode varies according to the amount of information contained in it. The resolution of the barcode (X-dimension) must be a minimum of 0.375mm and a maximum of 0.990mm when using GS1 AI syntax in the barcode on a consumer unit.

The resolution of the barcode (X-dimension) must be a minimum of 0.396 and a maximum of 0.990mm when using GS1 Digital Link URI syntax in the barcode on a consumer unit.

Barcode quality and life span

2D barcodes are verified according to the ISO standard ISO / IEC 15415. This is an international standard that describes the quality requirements for barcodes and the readability. Highest grade is 4.0 / 20/660. The minimum requirement is 1.5 / 20/660. The numbers indicate; character / aperture / wavelength of the light illuminating the barcode.

The life span of a barcode depends on the type of label material used and where / how the label is placed on the product. Label material / printing method must be chosen that has at least as long a shelf life as the assessed shelf life of the product to be labelled.

Placement of the barcode on the product

If 2 barcodes are placed on the product, a linear and a 2D barcode for use in POS or a linear and a GS1 Digital Link for consumer communication or two 2D barcodes for both POS and consumer communication, efforts should be made to place them adjacent on the packaging. This ensures that the barcode is read regardless of which barcode contains what you want to read. Programming the barcode scanners to ignore the type of code that should not be read will prevent erroneous readings.

Readability of the barcode

The readability of the barcode depends on the size of the barcode, the type of barcode reader and the distance from the barcode to the barcode reader. If the requirements for size and quality are followed, this is in accordance with industry standards and the barcodes can be read at a normal distance with normal equipment.

GS1 Datamatrix with Element String (AI’s) syntax for POS purposes

The GS1 AI structure is the same solution that is used to structure data used in the GS1-128 barcode on Trading units and pallets today. This solution will fill all the needs of the industry to get better traceability right down to the checkout (POS) and it provides the necessary information to get better shelf-life control, and to automatic price down products that are approaching the expiration date in time to minimize food waste in stores. A minimum information width has been defined for POS purposes.

This is:

• GTIN
• Best before date or Expiry date
• Batch/lot nr.
• Net Weight (for variable measure products).

This does not mean that other information elements cannot be entered in the barcode, but this will increase the physical size of the barcode. It is not necessary to have all the information in human readable text next to or below the barcode if this information is elsewhere on the label. However, it is recommended that the minimum GTIN is in human readable text in connection with the barcode (as the example on the right).

 

206 Use of EDI in the retail trade

Use of EDI in the retail trade

EDI – Electronic Data Interchange – is used in the retail industry to exchange commercial documents like Order, Order Receipt, Order Confirmation, Despatch Advice, Invoice and Invoice Receipt.

EDI can be performed in various ways, from fully automated processes both at customer and supplier, to web solutions where information is registered manually.

EDI is used for all distribution types.

 

Overview of EDI messages and in which processes they are used

Which EDI messages to use will vary with the distribution type.

An overview of this, along with deadlines for when the messages are to be sent, are described in EDI message, type of distribution and deadlines.

Before using EDI, it is necessary to clarify which messages to be used, message formats, exchange methods, electronic message addresses, etc. This documented the EDI Exchange agreement.
This document also specifies other bilateral issues related to the exchange of EDI messages.

To ensure that both parties and all business functions are familiar with all bilateral agreements, it is crucial that the EDI Exchange Agreement is used actively.

How to get started with EDI is described in Implement EDI in the retail trade.

In order to start using EDI, trading documents must be translated into an EDI format.
The following formats are available:

• Message description EANCOM for order, order receipt, order confirmation, Despatch Advice, invoice, invoice receipt
• Message description XML for order, order receipt, order confirmation, Despatch Advice, invoice, invoice receipt

Revisions of the EDI formats, is documented in Change log current version vs. past versions

204 Create documentation, send and receive EDI Despatch Advice

Create documentation, send and receive EDI Despatch Advice

Develop documentation

STAND makes no direct claim to any documentation that will accompany or document a delivery, as well as the fact that the EDI Despatch Advice is always to be used for distributors or Crossdock deliveries.

For deliveries direct to retailer, there should bilaterally be agreed if the EDI Despatch Advice is to be sent.

It is nevertheless understood that there may be a need for documentation beyond this, such as consignment, transport documents or other accompanying documentation.

In certain types of deliveries or in given situations there may also be legal requirements for which documentation that shall follow the shipment.

The parties must bilaterally agree what documentation is required in addition to the EDI Despatch Advice.

Send Despatch Advice

When the supplier has picked, labelled and clarified delivery for pick-up (at delivery condition Ex Works) at the agreed time and place, the Despatch Advice shall be sent in accordance with deadline.

One Despatch Advice should only include one order. Exceptions to this may occur at Crossdock.

The Despatch Advice should refer to previous orders.

Despatch Advice shall contain only the products and the quantity delivered.

Exceptions to this may occur at Crossdock, but this must be agreed bilaterally.

Distribution Units (DU) must be identified with SSCC (Serial Shipping Container Code) and this information must be sent in the Despatch Advice.

SSCC is the most important tracking key and associates the individual products in the delivery up to which pallet products are located.

The Despatch Advice is shipped with different details of information, depending on which pallet type the delivery consists of or what has been agreed bilaterally.

Normally, what applies:

• Standard pallet must be sent at level 3
• Mixed pallet must be sent at level 3
• Customer packed pallets must be sent at Level 4
• Promotional Unit must be sent at level 4. Level 3 can be agreed bilaterally

For Promotional Units, the following formulation applies from STAND:

«The grocery industry has a common goal that all deliveries should be traceable as far as possible through the entire value chain. For Promotional Units, this is achieved only by labelling each Promotion Unit with a unique identifier (SSCC) and include it in the Despatch Advice sent to the retail chain. This ensures traceability all the way to the store.

Today, it is variable practices in suppliers on which level of Despatch Advice is used on Promotional Units. The goal is that the industry part will prepare the systems for sending and using Level 4 of Despatch Advice on Promotional Units before the end of 2019 ».

For those who use TakeCargo for transport, the following applies:

• The sender’s consignment number must be sent in the Despatch Advice.
• In Norway, GS1 GINC (Global Identification Number for Consignment) is used as the unique identification of the individual consignment. Documentation of structure can be found at gs1.no.
• The GS1 GINC is preferably used by the transporter. From the the customers, a transport instruction is sent to the carrier (via TakeCargo) which describes the shipment itself. In the transport instructions, the GS1 GINC must be included. It is a requirement that the GS1 GINC sent in the Despatch Advice message is also affixed to the transport documents handed over to the carrier when the products are collected.

Despatch Advice can also be sent to the load carrier (eg NLP) with information about the number of pallets of each pallet type included in the pallet exchange scheme.
This information enables automatic pallet balance update between customer and supplier.
The use of a Despatch Advice for the update of cargo information must be agreed with a cargo carrier before it is taken into service.

The Despatch Advice can also indicate the number of pallet places the delivery requires in transport. This information allows the distributor at Ex Works to calculate the transport needs, thereby sending the correct size of the lorry when the delivery is to be picked up.

Receive Despatch Advice

Upon receipt of a Despatch Advice, the customer can plan and prepare products receipt.
The use of Despatch Advice simplifies products receipt and contains, in addition to other information, traceability information on the products.

The Despatch Advice number must be unique to each Despatch Advice sent from the supplier.
The buyer shall reject a Despatch Advice with a number that has been received and processed earlier.

How the Despatch Advice is used by the customer in internal systems is not covered by STAND guidelines.

202 Confirm order

Confirm order

Manage orders and send Order Confirmation

Upon receipt of an order, the supplier shall check that the order complies with the bilateral agreements specified in the EDI Exchange Agreement.

Deadline for sending an Order Confirmation

An Order Confirmation must be sent no later than 3 hours after the order stop time. If not possible to meet the 3-hour deadline, it can be agreed bilaterally what the deadline should be.

For deliveries with order and pick up the same day, bilateral deadlines apply.

Bilateral deadlines must be agreed in writing.

Check for delivery ability

The expected delivery must be confirmed in the Order Confirmation. This means that it must be checked for deliverability.

An Order Confirmation must be sent that confirms what the supplier with a high degree of probability expects will be delivered. The distributor is aware of that there may be a discrepancy between what is confirmed delivered and what is actually delivered. In the case of repeated deviations over time, the parties will enter into a dialogue about how the this can be corrected, in a constructive and flexible way.

It must not be confirmed more than originally ordered without agreement.

When checking for delivery ability, consideration shall be taken regarding any bilateral agreements that allow products to be delivered which, under normal conditions, do not meet the requirements for the distribution of total shelf life between the players.  See The establishment of bilateral agreements for the assessment of shelf life

Products that are not covered by a bilateral agreement must have a remaining shelf life that satisfies the requirements for distribution between the players as specified in Table for assessment of shelf life of a product.

Information to be sent for products that are temporarily sold out

If a product is temporarily sold out, it is a request from the distributors that the date for when the product is expected back for sale can be sent in the Order Confirmation. However, this must be agreed bilaterally.

If the supplier does not have systems that can provide this in the Order Confirmation, this information must be exchanged in other bilaterally agreed ways. By exchanging information about when a temporarily out-of-stock product is expected to be available for sale, this can be used actively in the order.

Reservation of quantity for order confirmation

When the order confirmation is sent, the supplier must reserve the quantity that is confirmed delivered to the current order.

Confirmed quantity versus what can be delivered at delivery time

If the order confirmation confirms a quantity that differs from what has been ordered, it is what is stated in the order confirmation that will be included in the delivery to the buyer.

This also applies if the supplier in the meantime will be able to deliver the ordered products.

Requirements for order confirmation

• The order confirmation must be sent by EDI
• One order confirmation shall be sent per order
• The order confirmation must be sent within the deadline
• The order confirmation shall provide a code that gives the customer a quick understanding of the status of the order. One of the following codes must be sent:
  • The order is accepted and delivered in full
  • The order is accepted, but can not be delivered in full
  • The order is accepted, but contains one or more product numbers that have expired
  • The order is accepted, but contains one or more product numbers that are unknown
  • The order is accepted and checked for product information, however inventory information / delivery ability is not verified
  • The order is accepted, but there is an error on a line with an undefined reason
  • The order is rejected (usually due to syntactic errors in the order itself)

For Crossdock, the following feedback applies in addition to the above:

• • The order is accepted, but the quantity on a line is reduced by agreement with the final customer

• A new order confirmation can not be sent to replace a previous order confirmation, even if the delivery situation changes

 

Receive and process order confirmation

An order confirmation is an end of the procurement process, and the customer should therefore not respond to the order confirmation even though this should have changed according to the order.

The order confirmation number from the supplier must be unique. Recipient shall reject an order confirmation with an order confirmation number received and processed earlier.

How the order confirmation is used by the customer in internal systems is not covered by the STAND guidelines.

 

201 Order

Order

Send order

An order is sent in the form of an EDI order, and specifies products / services ordered under the terms agreed between seller and buyer.

The order shall fulfil bilateral agreements specified in the EDI exchange agreement.

The order includes buyer and seller, product, quantity, desired delivery date and place of delivery.

The order must be sent in accordance with the agreed order stop time.

Possible corrections that can be made on an order after it has been sent:

• Cancellation of the order can be done in the following alternative ways:
  • It is agreed on the telephone that the supplier must send an EDI order confirmation, with 0 in the amount on all product lines
  • It is agreed on the telephone that the order is manually deleted in the system of both parties
• Additional Orders for delivery at the same time as the main order must be made within the agreed order stop time for the main delivery. This is done by placing an ordinary EDI order on the products and quantities to be ordered as well.
• Amendments on a dispatched order can be made in the following alternative ways:
  • It is agreed that an EDI order confirmation will be sent with 0 on the item lines to be changed, upon which a new EDI order will be sent on the item lines that should be changed
  • It is agreed on the phone that the original order is deleted, and that a new EDI order will be sent
  • It is agreed on the telephone that an EDI order confirmation will be sent with 0 on all product lines, and there will then be sent a new EDI order

Special relationships related to order
The order number should be unique to each order sent from a buyer.
The supplier must reject an order where the order number is received and processed earlier.

For certain products, there is a bilateral agreement on how to split shelf life between the parties. Look to The establishment of bilateral agreements for the assessment of shelf life.

For EXW delivery terms, the rules dictate one order should only include one delivery from one pick-up point to one place of delivery and one desired delivery date.

For delivery terms where the supplier is responsible for transportation, the same applies, except that the order may contain deliveries from multiple locations.

Receipt of orders and return of order receipt
The supplier, if agreed upon in the EDI Exchange Agreement, shall return an EDI order receipt immediately after the order is received.

Order receipt has the function of confirming to the customer that the supplier has received the order. Order receipt contains no information on whether the customer receives the ordered products.

Receive order receipt
Upon reception of order receipt, it provides the customer with an assurance that the order was received by the supplier.

How order receipt is further used by the customer in internal systems is not covered by the guideline.

196 Submission of products for control measurement at EPD Checkpoint

Submission of products for control measurement at EPD Checkpoint

Deadline for submission of a control measurement product at EPD Checkpoint / Tradesolution is Friday in U-3 (Timeline A8).

See process description at: www.tradesolution.no
Current deadlines are available in section for downloads.

195 Product images in Tradesolutions MediaStore

Product images in Tradesolutions MediaStore

Product images of all new products should according to the timeline be available in Tradesolutions MediaStore within U-3.

See process description at: www.tradesolution.no
Current deadlines are available in section for downloads.

191 Order from distributor and delivery to retailer (A6-A10 in timeline)

Order from distributor and delivery to retailer (A6-A10 in timeline)

Distributor will order no later than Tuesday in U-3 to meet expected needs – for pipeline fill and sales in start-up week.

If both parties wish for a different order flow, deviations may be agreed, however, obligations are in accordance with volume confirmation A4.

The order is based on the chain planograms and / or other systems.

The order’s pick-up / delivery time shall provide the supplier with the maximum amount of time required to ensure total coverage and possible discrepancy while safeguarding the cost-effective flow of products to the distributor.

Current deadlines are available in section for downloads.

189 Launch shall not be postponed

Launch shall not be postponed

Launch will not be subject to major deviations between forecast (A4 in timeline) and actual ordering. In general, product news should be ready for pick-up from supplier from Monday U-2, or at the agreed time.

188 Routine of unannounced delays

Routine of unannounced delays

Any delay must be notified immediately with the information available at the time of notification. Message must be sent to the department of category / purchase and department of logistics.

1. Notification of postponement after U-6, or at delays longer than Monday U1, is handled by routine for unannounced delays.
2. The products can be ordered according to plan.
3. The supplier confirms reduced delivery capacity for regular order confirmation in U-3, (A6.1 in timeline)
4. Customer may determine any delayed delivery date at the latest in U-1. Customer can be released from assortment obligation (A3 in timeline)
5. Assessment and decision on response if deviations occur are handled by the individual retail chain.

187 Routine at delays

Routine of notified delays (A7 in timeline)

Any delay must be notified immediately with the information available at the time of notification. Message must be sent to the department of category / purchase and the department of logistics.

1. Supplier confirms delivery capacity of complete delivery in U-6. If the supplier is not able to deliver, is currently notified new delivery date, (same to all customers, given compliance with other deadlines)
2. The supplier confirms the final delivery date in U-3. Actual postponement / postponed launch time should be equal to all customers, given compliance with routines / deadlines in this standard. Volume is distributed based on supplier’s forecast to chain timeline A4. Time deviations that do not affect product at retailer Monday week 0, must be resolved. If the delay exceeds three weeks, ie longer than Monday week 1, the routine applies to unannounced delays, see below.
3. Deferred delivery date is considered in order sent in U-3 (A6).
4. The deferral is dealt with in the evaluation of launch, bilaterally between supplier and customer.

 

183 Forecast and delivery confirmation (A4 in timeline)

Forecast and delivery confirmation (A4 in timeline)

In the case of inventory-managed in-phasing, the replacement product will most often have the same sales volume and profile as the outgoing product. There will normally be no need for own forecasts but close dialogue about in-phasing time.

With time-managed in-phasing, the forecast is divided into three and determined by the supplier:

1. Pipeline fill
   Calculation based on customer information about listing / number of locations (warehouse and shelves) and amount per location cf. timeline A3. 2.

2. Consumer purchases
   Expressed as the number of Stock Keeping Units (SKU) per week given listing.

3. Campaigns
   Retail chains wishing to carry out campaigns on new products follow the retail chain’s regular deadlines regarding. script, forecast / pre-order.

Supplier must confirm delivery capacity in U-6.

Tradesolution has developed a portal for the exchange of sales forecasts between supplier and distributor, initially for new launches and assortment changes.

REMA and COOP use this solution, while Norgesgruppen / ASKO uses its own supplier portal.

Example of screenshot from the forecast portal

181 Time-managed or inventory-managed assortment change

Time-managed or inventory-managed assortment change

Assortment change can be done inventory-managed or time-managed.

Inventory-managed assortment change means that outgoing products are sold until inventory is at a low level or sold out and then sales of the new product starts.

In the case of inventory-managed assortment change, new products will replace an outgoing item and / or take over its place in the shelf – link / product connection is used. Sales start will depend on inventory and sales on outgoing item. The supplier and the retail chain must agree which stocks are included and calculate the date of the transition. Campaigns or other steps to make the change can be agreed. It is normal to set a final deadline for the delivery of the outgoing item.

Inventory-managed assortment change significantly reduces the risk of empty shelves and losses throughout the value chain and should be chosen if possible.

Optimal inventory-managed assortment change requires close collaboration between supplier and individual wholesaler, including dialogue on inventories and sales development. It will not be pre-orders from wholesaler in U-3 if inventory-managed in-phase is used. Order and startup are bilaterally agreed.

Time-managed assortment change implies that a date for the start of sale of products is set. Time-managed assortment change is selected when inventory-managed is not optimal, eg by phasing in products that receive heavy sales support or where the physical attributes of the product require rebuilding of shelves. With time-managed in-phase, relevant wholesale warehouses and stores must be filled up at the same time. The volume for this is significant and must be calculated separately – referred to as «pipeline fill»

News to be distributed in several trading chains is launched in one of the industry’s joint launch time frames.

180 Product presentation (A2 in the timeline)

Product presentation (A2 in the timeline)

In the meeting where product news is presented, the supplier presents its news and suggestions for product range changes together with:

• Retail chain agreement form (incl. price)
• Finished PRICAT message
• Product samples (preferably before the planning phase)
• Proposals for assortment codes
• Proposed phase-in approach (time-managed or inventory-managed)
• Proposed delisting (time-managed or inventory-managed)
• News summary (in some retail chains)

179 Master data registration in EPD (A1 and A3.1 in timeline) and control measuring at EPD Checkpoint (A8 in timeline)

Master data registration in EPD (A1 and A3.1 in timeline) and control measuring at EPD Checkpoint (A8 in timeline)

Any meetings shall be arranged in a reasonable time. Both parties must contribute to ongoing dialogue

The supplier must register sufficient master data in the EPD database for the product to be assigned an EPD number. This is phase 1 of master data registration, and must occur at the latest in U-15 (timeline A1).

Remaining relevant basic data information according to defined information width must be registered in the U-6 (timeline A3.1) after assortment verification).  This is phase 2 of master data registration.

Deadline for submission of a control measurement product at EPD Checkpoint / Tradesolution is Friday in U-3 (Timeline A8).

Reference is also made to the process description on www.tradesolution.no.

177 The top load labelling system

The top load labelling system

Recommendation for industry and retailers
The system ensures that there is a minimum of product damage and to enable automated and efficient load planning throughout the industry.

It is recommended to the industry to work with its suppliers with the aim of maximizing the quantity of products satisfying the recommendation and that all products are labelled with permission top load.

 

Part A
Cost-effective transport requires optimal utilization of the factors capacity, weight and volume. The ratio between the average weight of the products and the volume is essentially such that trucks can be fully utilized. However, the reality is that due to different heights on the pallets it is not possible to load trucks and containers in such a way that the volume is utilized. This implies significant and unnecessary additional costs in the supply chain.

Developing a common system to determine the load a pallet can withstand based on the optimal use of packaging consumption will result that the entire industry can achieve better transport utilization and thereby a significant cost reduction, also in a national economic perspective, and contribute to positive environmental impact.

Prerequisites
The system is based on the following assumptions:

• Secondary packaging shall protect primary packaging and the product during storage, handling and transportation until the product is made available to the consumer at the store
• The packaging must withstand the dynamic load by placing two pallets of products on top of each other in real transport conditions.
• The industry is responsible for developing proper packaging for its products through a conscious commitment to total economic optimization. Safety factor determined by the product manufacturer

Labelling
When using the top load labelling system, STAND recommends that a pallet should be able to withstand its own weight by labelling the pallets with an additional information with maximum top load.

With permissible top load is understood, the weight of the pallet which can be placed on top of a specified pallet should withstand. The pallet should withstand the top load weight without the packaging or the products in the packaging on the underlying pallet being damaged during normal handling and transport.
Note that there is a specific weight to be specified and not a weight class. The use of single weights provides the greatest flexibility and thus the ability to optimize the utilization of the carrier’s loading capacity.

Allowed top load to be labelled is as follows:

1. As part of the standard pallet label (GS1 pallet or product label with its own section)
2. On transport label (GS1 transport label with separate section)
3. On your own label (exception when it is not practical with a) or b).

 

Transport label with top load information:

 

Pallet label with top load information:

 

PART B
Packaging design
It is recommended that it is how the finished Distribution Unit (DU) / pallet should look like, is the starting point. Then create the design and development of Stock Keeping Units (SKU) and Consumer Units (CU) on this. Close collaboration with space management is required for the optimal design of the products in the store shelves.

Strength calculation
It is assumed that the Stock Keeping Unit (SKU) strength calculation is normally performed to withstand pressure loads, see PART C.
Practical testing may be the only way to determine the packaging’s ability to withstand pressure loads.

Compression test
For all packaging except for a single corrugated cardboard box where calculation may be sufficient, it is assumed that a compression test of Stock Keeping Units (SKU) and Stock Keeping Units (SKU) filled with Consumer Units (CU), regardless of whether Consumer Units (CU) will provide a portion of the load capacity, is assumed.

Norwegian cardboard suppliers have developed their own calculation and test procedures for corrugated cardboard.
For other packaging, manufacturers’ standards, possibly an independent test institute, are used, see PART C.

Safety factor
To reach the maximum permitted top load for a packaging unit and for a pallet of units, consideration must be given to all matters relating to design, materials and applications.
This happens in practice by reducing calculated values ​​by a percentage reduction for different conditions that weaken the packaging.
In addition, a safety factor depends on transport conditions that will compensate for any unforeseen impacts such as the packaging and the pallet may be exposed on its way.
See PART C for more detailed information.

Transportation test
It is recommended that the system in each company contain requirements for transport testing as standard.
In all cases, where there is a new or normative package and for all cases where the consequences of breakage may be particularly large, a transportation test is performed to ensure that the product behaves as provided, even under unfavorable conditions.

A transportation test must therefore be carried out in an environment which will cause the packaging to be subjected to at least the impacts that normal transportation will have.
This is the responsibility of the industry / supplier.

Cost

• Upgrading the efforts around packaging development
• IT system for load scheduling with efficient use of top load information
• Upgrade of labelling equipment

Savings

• Reduced shipping costs
• Reduced breakage
• Reduced return transport
• Fewer errors and corrections during development of packaging
• Correct placement of the products in warehouse

 

PART C
Strength calculation (Example)

Safety factor
There are several factors that affect the choice of safety factor for transport. These can be divided into the following main groups;

• the packaging itself
• how the packaging is stacked on the pallet (pallet pattern)
• the location of the packaging on the pallet (overhang/underhang)
• environmental impacts from temperature

The correct safety factor is the responsibility of the product manufacturer.

The security factor must consider conditions that cannot be predicted and thus easily establish the calculations.
Therefore, with the use of a safety factor, it is necessary to assess whether the relevant requirement is within normal transport and handling or not. Determining the safety factor is a relationship between the packaging manufacturer and the product manufacturer, but it is the product manufacturer who is responsible for ensuring that there is no breakage during transport to the consumer.

Sample of security factor
The factor may be set to SF = 3.5. This means that if the packaging is specified to withstand a pressure load of 350kg, it will be approved and marked for 100kg load
under the type of dynamic conditions that occur during normal transportation and handling in Norway.

The packaging
The starting point for the strength of the packaging is the choice of material and construction.
A weak material can be designed to give a high strength construction, and a strong material may be impaired by choice for wrong purposes (incompatible materials), improper processing (stress, fracture or cracking), poor knowledge, etc.
This applies to perforation, tape, pressure that compresses the wave (“flute”) on corrugated cardboard, affixing labels etc.

In addition, especially moisture will weaken the packaging and thereby the strength significantly.

Reduction of strength due to these conditions will normally be part of the work performed by the packaging supplier as part of the development work.

Pallet pattern

There are in principle two different ways to stack products on a pallet (pallet patterns);  bond stacking pattern and column stacking pattern.

Bond stacking means that the units on each layer are different than the ones above and under, thus locking each other to a greater or lesser extent, but it reduces the compressive strength by approx. 40 %.

Column stacking means stacking packages on top of each other without overlapping with other packages. This form of stacking gives maximum strength in terms of pressure load due to that the corners are bigger breach stiffness than the sides, but the stack gives poor stability without additional use of stretch film, strap, ribbon or similar.

171 Case fill rate

Case fill rate

Case fill rate expresses the ratio of volume of product (measured in volume) to the volume of packaging.
The packaging system consists of Consumer Unit (CU) and Stock Keeping Unit (SKU).

Example of case fill rate measurement for a bottle (Consumer Unit (CU)):

Unnecessary volume in the packaging of products is cost-driving and an impact on the environment throughout the value chain.
Therefore, all products must be optimized so that the degree of case fill rate and circulation ensures:

• Good turnover of products in store
• Little food waste (the size of the Stock Keeping Unit (SKU) must be adjusted to turnover and shelf life)
• Minimal environmental impact

This animation shows how case fill rates are calculated for different products

More about the case fill rate, and more examples of how the case fill rate is calculated, can be found on the Tradesolution website, www.tradesolution.no.

110 Listing, all information attributes, forecast and delivery ability

Listing, all information attributes, forecast and delivery ability

This sub process consists of points (A3-A5 in timeline):

• Feedback on listing / main assortment and confirmation of delivery ability
• Time-managed or inventory-managed assortment change
• Master data registration – completion of complete information attributes
• Forecast and delivery confirmation (A4 in timeline)
• Routine for delay from supplier / private label
• Assortment changes outside agreed time frame

109 Master data registration and product presentation

The process describes the flow of information and the physical flow of the product.
This is illustrated in a timeline.

149 Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label

Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label

The standard differs on different types of pallets depending on the content.

Only Standard pallet and Promotional Unit can provide a clear labelling of product information that applies to the entire pallet.

Standard pallet
A Distribution Unit (DU) containing the same product (same GTIN) with fixed count of Stock Keeping Units (SKU) and where labelling of unique product information on the Distribution Unit (DU) is possible.

It is recommended that a Standard pallet only contain Stock Keeping Units (SKU) with the same batch / lot number and shelf life date.

There are two different types of Standard pallet:

• Standard pallet with height 120 cm
• Standard pallet with height 60 cm (Standard Pallet – Low)

Standard pallet – Low is used for low-frequency products and for products with short shelf life.

A product can only be used on one type of Standard pallet, either 120 cm height or 60 cm height.

Standard pallet with height 120 cm

 

Standard pallet with height 60 cm (Standard pallet – Low)

 

 

Standard pallet shall be labelled with product and transport information.

Since product information and transportation information are usually known at different times, the practical solution is to label the device with two different labels:

1. Product information label (incl. SSCC)
2. Label with transport information

 

Product information on the GS1 product label for Standard pallet

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Standard pallet in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Standard pallet must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 02 must be used. The count of Stock Keeping Units (SKU) is also required on the Distribution Unit (DU) using GS1-128 AI 37
• The Distribution Unit’s (DU) own unique GTIN can also be used, using GS1-128 AI 01.

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label. Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number.
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the pallet have the same batch / lot number, this is indicated on the label in human readable text and bar code. If the pallet contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure products. Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
Shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
Must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked (Kan ikke stables).

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

 

Product labelling on Standard pallet

Overview of product information that shall or may be labelled on Standard pallet:
Information	Human readable text	GS1-128 (bar code)	AI	Format
SSCC (License Plate)1)	Must be labelled	Must be labelled	00	n2 + n18
GTIN for the Distribution Unit (DU)2)	Can be labelled	Can be labelled	01	n2 + n14
GTIN for the contained Stock Keeping Units (SKU)	Must be labelled	Must be labelled	02	n2 + n14
Count of Stock Keeping Units (SKU) on the DU	Must be marked except when DU is defined as an SKU	Must be marked except when DU is defined as an SKU	37	n2 + n..8
Product name	Must be labelled	Not labelled
Batch / lot number3)	Must be labelled	Must be labelled	10	n2 + an..20
Best before date4)	Must be labelled if Consumer Unit (CU) has printed best before date	Must be labelled if Consumer Unit (CU) has printed best before date	15	n2 + n6
Net weight	Must be labelled for products of variable measure	Must be labelled for products of variable measure	3103	n4 + n6
Gross weight	Must be labelled	Can be labelled	3300	n4 + n6
Max. top load	Must be labelled	Not labelled
Temperature requirements	Must be labelled if the product has temperature requirements	Not labelled
1) SSCC shall be indicated on the product label but permitted on both labels provided that the same number is used. 2) Can be used in a case for a transitional period. 3) If Batch / Lot No. is omitted on the Stock Keeping Unit (SKU), or it is different Batch / Lot No. on the Stock Keeping Units (SKU) this should not be labelled on the Distribution Unit (DU). 4) Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

 

Example on the GS1 product label for Standard pallet

 

 

Promotional Unit

A Unit defined as a Stock Keeping Unit (SKU) containing a fixed number of Consumer Unit (CU), intended for display in stores.

Promotional Unit can be 1/1 pallet, 1/2 pallet or 1/3 pallet.

Each Promotional Unit has its own load carrier.

Promotional Unit consisting of 1/2 pallet or 1/3 pallet are placed on a slave pallet. This constitutes a transport unit.

If slave pallet is omitted, this must be agreed bilaterally. For example, for 1/2 pallets with good stability, they can be tied together and exclude the slave pallet. This allows for better use of the pallet by increasing the Promotional Unit, thus allowing more items on the pallet.

 

Promotional Units are labelled with two levels of SSCC:

• At the lowest level is labelled with Product label for Promotional Unit as a Stock Keeping Unit (SKU) with the addition of SSCC. The product label is labelled on each Promotional Unit.
• The whole Promotional Unit is labelled with Standard shipping label for the groceries sector. If the Promotional Unit is a 1/1 pallet, this is labelled as a Standard pallet.

Labelling of Promotional Units provides increased traceability in the value chain

 

Product information on the GS1 product label for Promotional Unit

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Promotional Unit in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Promotional Unit must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 01 must be used

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label.  Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the Distribution Unit (DU) have the same batch / lot number, this is indicated on the label in plain text and bar code. If the Distribution Unit (DU) contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Consumer Unit (CU). Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure Stock Keeping Units (SKU). Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked.

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

 

Product labelling on Promotional Unit 

Overview of labelling of product information that may or may not be labelled on Promotional Unit:
Information	Human readable text	GS1-128 (bar code)	AI	Format
SSCC (License Plate)	Must be labelled	Must be labelled	00	n2 + n18
GTIN for Stock Keeping Unit (SKU)	Must be labelled	Must be labelled	01	n2 + n14
Product name	Must be labelled	Not labelled
Batch / lot number1)	Must be labelled	Must be labelled	10	n2 + an..20
Best before date2)	Must be labelled if Consumer Unit (CU) has printed best before date	Must be labelled if Consumer Unit (CU) has printed best before date	15	n2 + n6
Temperature requirements	Must be labelled if the product has temperature requirements	Not labelled
Supplier’s item number	Must be labelled	Not labelled
1) If Batch / Lot No. is omitted on the Stock Keeping Unit (SKU), or it is different Batch / Lot No. on the Stock Keeping Units (SKU) this should not be labelled on the Distribution Unit (DU). 2) Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

 

Example of Stock Keeping Unit (SKU) label with SSCC for Promotional Unit

 

Units where product information can not be entered on their own label

Mixed pallet
Two variants of Mixed pallets are described; with and without intermediate pallet.
On Mixed pallet it is not possible to enter product information on its own label.

Mixed pallet without intermediate pallet:
Pallet consisting of several different products.

Mixed pallet with intermediate pallet:
Pallet consisting of several different products, where each product is stacked in one or more layers, and where each different product is separated by an intermediate pallet.

The choice of type of mixed pallet depends, among other things, on handling costs, transport / environmental costs and storage technology and must be agreed bilaterally between the parties.
Packaging and stability of the Stock Keeping Unit (SKU) must be considered when choosing type of a Mixed pallet.

If intermediate pallet(s) are used, it shall always be ordered the amount of Stock Keeping Units (SKU) to complete a layer.

Mixed pallet (both with and without intermediate pallet) is labelled with Standard shipping label for Norwegian grocery sector.

 

Customer packed pallet

When a supplier assembles products for delivery to the final recipient, the products are packaged and labelled with SSCC at two packaging levels.

Customer packed units are labelled for delivery to the end-user and the Distribution Unit (DU) is labelled for delivery to the transit warehouse.

On Customer packed units it is not possible to enter product information on the Distribution Unit (DU) label.

 

A customer-packed pallet can be Customer packed unit – multiple route, multiple customers, Customer packed unit – single route, multiple customers, or Customer packed unit – single customer.

• Customer packed unit – multiple route, multiple customers is a unit of products for two or more end recipients that will be split in transit storage.
• Customer packed unit – single route, multiple customer is a unit of products for two or more end recipients on the same route or transport.
• Customer packed unit – single customer is a unit of products that are intended for only one end recipient.

This Customer packed units does not need to have its own load carrier and is being loaded on a standardized transport unit (for example, an EUR pallet).

Customer packed unit – multiple route, multiple customers and Customer packed unit – single route, multiple customer is stacked in columns per. end receiver.

Customer packed unit – multiple route, multiple customers is split after products receipt in the transit warehouse, and the individual Customer packed unit is forwarded to the final recipient. A prerequisite is that all Customer packed units located on one Distribution Unit (DU) are destined for the same transit warehouse.

152 Guidelines for labelling of Stock Keeping Units (SKU)

Guidelines for labelling of Stock Keeping Units (SKU)

Type of bar code symbol
When labelling with bar code on Stock Keeping Units (SKU) GS1-128 bar code shall be used.

Identical information
Same information (GS1-128 AI) should only occur once per label.

Size and design of labels
Since the shape and size of the Stock Keeping Units (SKU) is highly varied, size and design of the label may also vary.

Quality of labels
It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit. Therefore, the quality of GS1-128 bar codes must minimum fulfill print quality with “Grade C” according to standard ISO / IEC 15416.
To achieve “Grade C” when reading, “Grade B” or better is recommended at printing.
Quality of labels and bar codes can be verified at GS1 Norway.

Placement of labels on Stock Keeping Units (SKU)
It is recommended that the Stock Keeping Units (SKU) is labelled on two sides.
If labelling can only be done on one side, the label on the Stock Keeping Unit (SKU) must be on the same side as one of labels on the pallet (consistent orientation).

By column stacking the Stock Keeping Unit (SKU) label will be oriented towards one pallet label (either on the short or long side of the pallet).

 

By bond stacking (like bricks) the Stock Keeping Unit (SKU) label could be oriented towards the two labels of the pallet. That is, both on the short and the long side of the pallet.

  

Bar codes
The following recommendations apply to GS1-128 bar code symbols:

• The orientation of the bar code should be such that the bars are vertical (picket fence).
• Size factor is in the range of 25 to 94% of nominal size.
• The minimum bar code height is 13 mm.
• Minimum 5 mm height on human readable text.
• The location of the bar code should be such that the bottom of the bar code is about 32 millimeters from the bottom of the Stock Keeping Unit (SKU).
• The bar code symbol included quiet zone (margins), must be at least 19 millimeters from a vertical edge to avoid damage to the label.
• If the height of the Stock Keeping Unit (SKU) is less than 50 mm, the bar code should be placed as high as possible and information to be written in plain text can be placed to the left of the bar code

 

Placement of bar code symbols on the Stock Keeping Unit (SKU)

Placement of bar code symbols on Stock Keeping Units (SKU) with height less than 50 mm

 

128 Recall / withdraw a product

Recall / withdraw a product

Areas affected by, and subject to guidelines from STAND are:

• Implementation of actions when an incident occurs, using the notification schema for recall, withdrawal or blocking of a product
• Alternative ways to track and trace an item in the value chain

162 Recommended traceability methods in the value chain

Recommended traceability methods in the value chain

Traceability using pallet labelling and EDI Despatch Advice
The recommended traceability method involves labelling load carriers with GS1 labelling system combined with EDI Despatch Advice (Advance Shipping Notice(ASN)).

For products distributed through the retailer’s distribution warehouses, the industry’s unified guidelines for the identification and Distribution Units (DU) are based on GS1 standards.

To conduct traceability, each actor in the value chain must have a system that can store and process Distribution Units (DU) or logistic units with unique identifiers.

The importance of SSCC as the primary tracking key for deliveries
SSCC is the most important tracking key in the retail value chain. For each pallet identified and marked with SSCC, all products that are on the pallet are linked with full tracking information (GTIN, batch / lot and shelf life). This information is sent to the buyer in an EDI Despatch Advice.

A prerequisite for the tracking information to remain intact is that an SSCC is not reused.
Reusing a SSCC can result in a pallet being stopped at the Goods Reception by the recipient’s IT system, anticipating that the pallet has been received earlier. The recipient must then issue a new SSCC for the pallet, mark it and link the contents of the pallet to the new SSCC.

Since the pallet now has a new SSCC, it can no longer be used as a mutual tracking key in the retail value chain. In case of an incident with a possible recall / withdrawal of products, this could be critical.

STAND has therefore decided the following:
“For trading in Norway, it is a requirement that SSCC shall not be reused until after a minimum of 6 years. This is rooted in the Norwegian Food Safety Law, requiering a minimum traceability of 5 years. This also includes products that are outside the scope of the Norwegian Food Safety Law”.

Traceability at and from sender
Each packaging level (Consumer Units (CU), Stock Keeping Units (SKU), Distribution Units (DU)) has an assigned GTIN and must include a bar code on the label.

On Consumer Unit (CU), GTIN should preferably be labelled with the EAN-13 bar code symbol.

Stock Keeping Unit (SKU) on the Distribution Unit (DU) must be labelled with an approved bar code symbology and linked to the Distribution Unit’s (DU) unique identification.

Each pallet must be labelled with one GS1-128 bar code pallet label. The label contains a unique identifier (SSCC) which enables a link between the Stock Keeping Unit (SKU) on the pallet and the batch / lot number stored in the sender’s IT systems.

If the pallet is split or changed (for example, to one Mixed pallet or Promotional Unit, it shall be identified with a new GS1-128 label and SSCC. Mixed pallets are not labelled with product information.

The product information is attached to the pallet’s SSCC by scanning each Stock Keeping Unit (SKU) when the Distribution Unit (DU) is being assembled.

Once the sender has created the connection between the Stock Keeping Unit (SKU and the Distribution Unit (DU) and secured this, the information can be used to make an EDI Despatch Advice.

The EDI Despatch Advice is then sent from the sender to the recipient of the products. The parties are identified with GLN. This provides a clear and secure identification of the parties and is central to traceability. The Despatch Advice contains all relevant product information (GTIN, batch / lot and shelf life) about the shipment, and that it ties it to each Distribution Unit (DU) using SSCC.

For shipment, the supplier scans all outgoing Distribution Units (DU) and thus has a unified link between the individual product, its associated batches and which customer receives the product. This also enables effective control of the sending of correct products to customers.

Sender sends EDI Despatch Advice to recipient at agreed time.

Traceability at receiver
When the products arrive at the recipient, each pallet will be scanned.

All Stock Keeping Units (SKU) and Distribution Unit (DU) information is received in the EDI Despatch Advice. Using the EDI Despatch Advice, the tracking information is taken care of and significantly simplifies the products receipt.

The link to the product information occurs when the recipient scans the SSCC on each Distribution Unit (DU). Here, the recipient connects information about the products (GTIN, batch and shelf life information, against the sender (GLN).

For a Standard pallet all relevant information can be scanned from the Distribution Unit (DU) labels. This ensures that correct products are received at the same time as traceability information can be linked to the individual supplier. This simplifies and ensures the sharing of proper traceability information.

Mixed pallets must be split into the warehouse, and through IT support ensure that accurate and statutory traceability information is safeguarded and connected correctly.

138 Complaints by Ex Works delivery terms

Complaints by Ex Works delivery terms

The buyer shall make a complaint about errors or defects in the products within a reasonable time after the error or defect is discovered or should have been discovered.

Seller who claims that the complaint deadline has been exceeded must do so immediately after the complaint has been received.

The buyer may require replacement, redeployment, price reduction, etc. pursuant to the provisions of the applicable law (Kjøpsloven).

All errors and defects must be based on the things that the seller is responsible for.

315 Product tracking requirements

Product tracking requirements

The legislation requires that each company must have systems to document which products are purchased from each supplier and which customer has purchased the company’s finished products.

This also includes raw materials and other input that are covered by the legislation.

There is no requirement in the legislation for which type of systems to be used for this.

Businesses can practice more comprehensive tracking systems than the minimum regulatory requirements require, but this is either based on self-imposed requirements or agreements with, and orders from the contracting parties.

Tracking means being able to follow the physical flow of goods. This is often referred to as chain traceability, and assumes that all parties meet the requirements and follow the guidelines for tracking.

Tracking takes into account the legal requirements for all parties to be able to trace their products one step forward and one step back in the value chain.

Tracking one step forward:

This means to the address the products are delivered to.

An invoice system containing information about item number / item name, customer number / customer name and invoice date is sufficient to be able to trace one step forward in the value chain.

If the company is using batch/lot numbers for their products, this should be included in the invoice, despatch advice and the like, or linked directly to the company’s own systems.

Tracking one step backward:

This means the address from which the products are delivered.

The company must keep a log of received products describing which products were purchased from whom and in which quantitiy, and date.

If the addresses for where products are delivered from or delivered to are not in accordance with the legal ownership of the products and the invoice process, this should be agreed separately between the parties.

314 Routines covered by the guidelines

Routines covered by the guidelines

Legislative anchoring of the guidelines

The guidelines are among others based on Norwegian or European regulations on food safety and traceability:

• Product Liability Act of 23 December 1988
• Act on food production and food safety, etc. of 19.12.2003 Matloven (Food Law)
• Regulations on internal control to comply with IK-mat forskriften (IK Food Law)
• EU Food Law (Regulation EC 178/2002)
• Directive 94/62 / EC on packaging and packaging waste

Each party has an obligation to familiarize themselves with the regulations that apply to the products your business sells or are involved in.

The legislation does not impose requirements on how tracking should be performed, and what systems in which tracking information should be recorded. Manual systems may be sufficient as long as the requirements for tracking and tracking information are met. 

Routines

The guidelines cover two procedures

• Requirements for and how to design contingency routines
• Implementing actions should an incident or crisis occur

Prepare crisis procedures

This is included:

• Prepare a Risk Analysis
• Prepare a Contingency Plan
• Requirements for product tracking
• Tracking information and labeling requirements

207 EDI message, distribution form and deadlines

Overview of the messages to be exchanged for the various forms of distribution, with deadlines.

197 Implementation of EDI in the retail trade

Implementation of EDI in the retail trade

Introduction to implementation of EDI in the retail trade where STAND’s guidelines are to be used.

Before an exchange of EDI can take place, an EDI exchange agreement must be established.

This specifies all relevant information, such as:

• Which parties are covered by the EDI agreement
• Contacts for different functions at customer and supplier
• Addresses to be used when exchanging EDI messages
• Which EDI messages to be exchanged
• What format and version of EDI messages that are used
• The way in which EDI messages are exchanged

In addition, the EDI exchange agreement shall state all bilateral agreements relating to EDI Interaction.

Bilateral agreements shall be established in all areas where deviations from other guidelines in STAND, which involve EDI, arise. This may be:

• Processes
• Deadlines
• Content in EDI messages

Some important clarifications

Valid formats of messages

STAND supports two main formats;

• EANCOM, based on UN EDIFACT-format
• XML, self-developed and customized EANCOM format, except for customized invoice e2b Invoice

In addition, some customers accept other formats, but description of these is not part of the STAND guidelines.

The most used of other formats are

• EHF, developed by DIFI
• e2b Invoice

Both are XML-based

Exchange methods

There are different ways to exchange EDI messages. This is not regulated in STAND, but is agreed between the parties. The most relevant methods of exchange are:

• Exchange messages via a mailbox feature. This involves a third party who communicates inbound and outbound messages between the customer and the supplier’s mailbox
• Customer and supplier agree that messages are sent directly to each other’s server without the use of a third-party actor
• Supplier sends and receives messages via a web-portal

Introduction to technical documentation EDI

In the following, conditions are described which, regardless of the format in which EDI messages are exchanged, are common and must be assessed/taken into account when implementing EDI.

The target group for the documentation is technical personnel who will implement EDI in the IT solutions at the customer or supplier.

However, it is highly recommended that the documentation is be reviewed together with the customer / supplier’s business department, as describe in detail what needs to be considered for expected interaction to take place.

Technical documentation describes message flow and interaction related thereto for all processes where EDI is used, and deals with the messages:

• Order
• Order Receipt
• Order Confirmation
• Despatch Advice
• Invoice
• Invoice Receipt

As messages and interaction may vary for each type of distribution, the documentation is divided into three parts, one for each of the distribution forms:

• Delivery via distributor
• Delivery directly to retailer
• Crossdock

The guidelines emphasize that the exchange of messages and interaction must take place according to simple and clear principles that also make control and follow-up as simple as possible.

Despite this, bilateral agreements must be concluded in several areas. These are described for each form of distribution and process in subsequent documentation.

Bilateral agreements must be documented in the EDI exchange agreement.

Areas where bilateral agreements can be established is:

• If Order Receipt shall be sent
• Deadline for Order Confirmation
• If Deviation from deadline on Despatch Advice at EXW
• If Invoice Receipt shall be sent

 Areas where bilateral agreements can be established is:

• Order
  • If order type Forecast shall be used and how this process is to be carried out
  • If order type Industrial Sales / Representative orders shall be used and how this process will be carried out if this deviate from ordinary process
  • Requested delivery / pick-up date. If the following codes are to be used:
    • Latest delivery time
    • Earliest delivery time
    • Requested delivery for a week beginning with …
  • If free text information should be sent, and which associated codes to be used

• Order confirmation
  • If Quantity delivered will be sent. Not recommended to use because deviations from ordered quantity are added in a separate field defined for this
  • If Availability date of product for temporary sold out, is to be sent
  • If free text information should be sent, and which associated codes to be used
  • Deadline for when Order Confirmation must be sent

 

Areas where bilateral agreements can be established is:

• Despatch Advice
  • If number of load carriers included in the pallet exchange scheme will be sent
  • If number of pallet places the shipment requires in transport will be sent
  • If Promotional Unit will be sent at level 3 in the Despatch Advice

 

Areas where bilateral agreements can be established is:

• If simple or advanced version of Invoice Receipt must be sent

Areas where bilateral agreements can be established is:

• If Order Receipt shall be sent
• If Order Confirmation shall be sent
• Deadline for Order Confirmation
• If Despatch Advice shall be sent
• If Invoice Receipt shall be sent

Areas where bilateral agreements can be established is:

• Order
  • If order type Industrial Sales / Representative orders shall be used and how this process will be carried out if this deviate from ordinary process
  • Requested delivery / pick-up date. If the following codes are to be used:
    • Latest delivery time
    • Earliest delivery time
    • Requested delivery for a week beginning with …
  • If free text information should be sent, and which associated codes to be used

• Order Confirmation
  • If Quantity delivered will be sent. Not recommended to use because deviations from ordered quantity are added in a separate field defined for this
  • If Availability date of product for temporary sold out, is to be sent
  • If free text information should be sent, and which associated codes to be used
  • Deadline for when Order Confirmation must be sent

Areas where bilateral agreements can be established is:

• Despatch Advice
  • If number of load carriers included in the pallet exchange scheme will be sent
  • If number of pallet places the shipment requires in transport will be sent
  • If Promotional Unit will be sent at level 3 in the Despatch Advice
  • If Quantity (ordered quantity) will be sent (can only be used if Order Confirmation is not used)

Areas where bilateral agreements can be established is:

• If simple or advanced version of Invoice Receipt must be sent

Areas where bilateral agreements can be established is:

• If Order Receipt shall be sent
• Deadline for Order Confirmation
• If Deviation from deadline on Despatch Advice at EXW
• If Invoice Receipt shall be sent

Special conditions at Crossdock

Replacement product (alternative product)

Use of replacement products must be agreed bilaterally. Replacement products can be used in connection with customer packed deliveries.

The principle is that original product ordered is replaced by alternate product from supplier. The supplier and the customer have agreed in advance which products are to be replaced. Order confirmation to describe the deviation between which product is ordered and which is delivered will not be used in this case.

It may occur that one product may be replaced with several replacement products.

Additional product lines

Use of additional products must be agreed bilaterally. Additional product lines can be used for customer packed deliveries.

The principle is that additional product lines are used if the products is not ordered in the original order but is ordered in retrospect (for example, by phone). The supplier and the customer have agreed in advance which products are to be replaced. Order Confirmation is not used in this case.

Customer packed deliveries from supplier

Identification of end customer / end receiver

In case of customer packed deliveries from the supplier, the main rule is that the end receiver is identified with GLN in the order notice. In special situations where the supplier has no access to GLN, the customer may send with the end receiver’s name and address information.

Handling Instructions

In case of customer packed deliveries from the supplier, the customers need to be informed about detailed transport information / handling instructions for Crossdocking on transit storage. This type of information is exchanged in the order notice.

Handling instructions sent from customer to supplier are specified as a structured free text field.

Indication of SSCC

Each unit of customer packed deliveries must be labelled with SSCC. Information about the individual devices and the connection to the SSCC is sent in the Despatch Advice.

Parties

At Crossdock, the buyer or product recipient shall identify the Crossdocking terminal. The end receiver shall then identify the recipient, which may be a warehouse or a store.

 

Areas where bilateral agreements can be established is:

• Order
  • Requested delivery- / pick-up date. If the following codes are to be used:
    • Latest delivery time
    • Earliest delivery time
    • Requested delivery for a week beginning with …
  • If free text information should be sent, and which associated codes to be used

• Order Confirmation
  • If Quantity delivered will be sent. Not recommended to use because deviations from ordered quantity are added in a separate field defined for this
  • If Availability date of product for temporary sold out, is to be sent
  • If free text information should be sent, and which associated codes to be used
  • Deadline for when Order Confirmation must be sent

Areas where bilateral agreements can be established is:

• Despatch Advice
  • If number of load carriers included in the pallet exchange scheme will be sent
  • If number of pallet places the shipment requires in transport will be sent
  • If Promotional Unit will be sent at level 3 in the Despatch Advice
  • If Replacement product can be delivered
  • If it is allowed to add products not ordered in the delivery / Despatch Advice
  • If Ultimate Customer of delivery can be sent at line level

Areas where bilateral agreements can be established is:

• If simple or advanced version of Invoice Receipt must be sent

151 Guidelines for labels on Distribution Units (DU)

Guidelines for labels on Distribution Units (DU)

Placement of labels on pallet
Two types of labels shall be used; label for product information and label for transport information.

• The minimum requirement is that the pallet should be labelled on two sides with both label types; one of the short sides of the pallet and the right hand long side (seen from the short side).
• Product and transport label must be on the same side of the pallet.
• When multiple labels are used on the same side of the pallet, the labels should be placed underneath each other. The label that contains SSCC placed at the bottom.
• The labels should be placed so that the bottom of the lowest bar code should be at least 400 mm above the floor, and the top of the uppermost bar code should not be more than 800 mm above the floor.
• The label should be placed at least 50 mm from the vertical edge.
• For pallets lower than 400 mm the labels should be placed as high as possible.
• If all information is known at the time the pallet is labelled and there is space on the label, all information can be labelled on one single label.
• To ensure automatic reading of the bar codes Promotional Units, Customer packed pallet and Mixed pallet should only the transport label on the transport unit be readable
• Product label on Standard pallet with height 60 cm (Standard pallet – Low) should be placed as high as possible.

Identical information
Same information (GS1-128 AI) shall only appear once on the product and transport label.
This means in practice that the same information can not be repeated on the same label or that the same information may appear on multiple labels on the device (pallet).
The exception is SSCC which is allowed on both labels if it is an identical number used.

Size and design of the labels
The following recommendation applies:

• The width of the label should be 105 mm or 148 mm
• The height of the label may vary

Recommended formats are:

• A5 (148mm x 210mm)
• A6 (105mm x 148mm)
• 105 mm x 192 mm

Quality of labels

• It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit
• It is a requirement that the quality of GS1-128 bar codes minimum meets print quality with “Grade C” according to Standard ISO / IEC 15416.
  To achieve “Grade C” when reading, “Grade B” or better by printing is recommended
• When affixing the labels, it is important to ensure that the bars in the GS1-128 symbol are correct and unbroken (avoid “wrinkling” on the label).

150 Transport information on pallet with example of transport label

Transport information on pallet with example of transport label

Content of the Standard shipping label for the Norwegian grocery sector.

Overview of labelling of Standard shipping label:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
Recipient’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the Crossdocking terminal	Must be labelled when the delivery is via the Crossdocking terminal	Not labelled
Buyer’s reference	Must be labelled	Not labelled
Gross weight	Must be labelled	Can be labelled	3300	n4 + n6
Max. Top load1)	Must be labelled	Not labelled
Temperature requirements	Must be labelled	Not labelled
SSCC (License Plate)	Must be labelled	Must be labelled	00	n2 + n18
1)    Max Top load is omitted for Mixed pallet.

 

Example of Standard shipping label for the grocery industry

 

 

Transport label for Standard pallet
Standard pallet is labelled with Standard shipping label for the grocery industry

A GS1 product label on a Standard pallet requires labeling of SSCC, gross weight, top load weight and temperature requirements.

This information can therefore be omitted from Standard shipping label for the grocery industry.

If both product label and transport label are used, SSCC can be labelled on both labels provided that the identical number is used.

 

Transport label for Promotional Unit
The Distribution Unit (DU) containing one or more Promotional Units is labelled with Standard shipping label for the grocery industry.

The Distribution Unit (DU) is identified and labelled with its own SSCC

If the Promotional Unit a 1/1 pallet, the same labelling of transport label as for Standard pallet is used.

Transport label for Mixed pallet
Mixed pallet (both with and without interlayer pallet) is labelled with Standard shipping label for the Norwegian grocery industry.

If the Mixed pallet is not stackable, information on Top load is omitted.

Transport label for Customer packed pallets
The Customer packed pallet is labelled with Standard shipping label for the grocery industry.

Note in particular:

 Recipient’s name, address, etc.

As recipient transit warehouse is given and transit address is given as delivery address. The pallet must be labelled with the transit warehouse’s name, street address, postal code and postal address in human readable text.

Name, address, etc. for the distribution warehouse.

The via-field the distribution warehouse is given. The pallet must be labelled with the distributions warehouse’s name, street address, postal code and postal address in human readable text.

 

Transport label for Customer packed units

Transport Information.

On this label, a separate field has been created for transport information. This is information that the buyer sends to the supplier in his order and which the supplier must put on the Customer packed unit’s transport label.

Format and content of transport information is agreed between the parties.

 

Content in transport label for customer packed unit

Transport label for customer packed unit:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
End recipients’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the transit warehouse1)	Must be labelled	Not labelled
Transport information2)	Must be labelled	Not labelled
Buyer’s reference3)	Must be labelled	Not labelled
Gross weight4)	Must be labelled	Can be labelled	3300	n4 + n6
Temperature requirements	Must be labelled	Not labelled
SSCC Code (licence plate)	Must be labelled	Must be labelled	00	n2 + n18
1) Transit Warehouse where the pallet is split/cross-docked, is stated in the VIA-field
2) Transport information is agreed between the parties
3) Example The Customers Ordering Number
4) Gross weight is the sum of weight of the products, packaging materials and pallet (load carrier)

Example of shipping label for Customer packed unit

 

148 Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label

Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label

Only product information should be labelled on a Stock Keeping Unit (SKU).
What information to be labelled depends on the type of product.

Intermediate Cartons shall be labelled as Stock Keeping Units (SKU)

Possible product information which SHALL or CAN be labelled on a Stock Keeping Unit (SKU)

GTIN – Global Trade Item Number
Includes GTIN-8 (8 digits), GTIN-12 (12 digits), GTIN-13 (13 digits) and GTIN-14 (14 digits).

All Stock Keeping Units (SKU) must have their own GTIN.
– For variable measure Stock Keeping Units (SKU), GTIN-14 with a leading digit 9 should be used.
– For other products, GTIN-13 is recommended.

Name of brand owner
– shall be shown in plain text either on the label or on the packaging.

Product name
– Must be written in plain text on the Stock Keeping Unit (SKU) product label.
– Must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, – and product description.
– The product description labelled on the Stock Keeping Unit (SKU) must be identical to the text in the Despatch Advice and Invoice.
-Product description should also contain a package description: for example, Coffee 12 x 500gr.

Batch / lot number
– A number generated by the manufacturer, used to achieve full traceability of product lot/batches in the value chain
– GS1-128 AI 10 must be used.

Shelf life information (“Best before” date, alternatively “Expiry date”)
– Must be labelled on all Stock Keeping Units which has shelf life printed on the Consumer Unit (CU)

GS1-128 AI 15 shall be used for «Best before date”
GS1-128 AI 17 shall be used for «Expiry date»

Net weight
– GS1-128 AI 3103 shall be used for variable measure Stock Keeping Units (SKU).
– Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Supplier’s item number
– can be labelled in plain text.

Table showing what SHALL or CAN be labelled:

Overview of product information that shall or may be labelled on Stock Keeping Unit (SKU):
Information	Human readable text	GS1-128 (bar code)	AI	Format
GTIN for Stock Keeping Unit (SKU)	Must be labelled	Must be labelled	01	n2 + n14
Name of brand owner	Must be labelled	Not labelled
Product name	Must be labelled	Not labelled
Batch / lot number	Must be labelled	Must be labelled	10	n2 + an..20
Shelf life	Must be labelled if shelf life is marekd on the Consumer Unit (CU)	Must be labelled if shelf life is marekd on the Consumer Unit (CU)	15, alternatively 17	n2 + n6
Net weight	Must be labelled for products with variable measures	Must be labelled for products with variable measures	310x	n4 + n6
Supplier’s item no.	Can be labelled	Not labelled

 

Example of GS1 Product label for Stock Keeping Unit (SKU), for a product with “Best before” date and a fixed weight:

Example of GS1 Product label for Stock Keeping Unit (SKU), for a product with “Expiry date” and variable measures:

102 Development of a product

Suppliers are encouraged to work closely with packaging suppliers and customers in developing new products.

Suppliers are encouraged to work closely with suppliers of packaging and customers in the process of developing new products.

The grocery industry is heavily packaging intensive. Increasing demands and expectations from authorities and consumers for reduction in use of virgin fossil materials and replacing plastic, whenever possible, will be highly focused. “Design for recycling” will be crucial to meet future regulations, expectations, environmental requirements and recycling goals.

Reduction of food waste will have increased focus to meet reduction targets agreed by the trade and the Norwegian authorities.

The grocery value chain in Norway has for many years exercised responsibility by active ownership in the material return shemes for packaginxg Grønt Punkt Norge and by funding the company Matvett to prevent food waste. These organizations are available to support you introducing more sustainable products.

Areas affected by, and subject to guidelines from STAND are:

• Optimization and requirements for design of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU) with accompanying packaging materials
  • The modular system
  • Case fill rate
  • The top load labelling system
  • Automatic warehouse at distributor – increased understanding of depalletization process
  • Checklist
• Valid pallets and requirements for these
• Labelling requirements
  • Guidelines for how to label Consumer Unit (CU) with 2D barcode
  • Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)
  • Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label
  • Guidelines for labelling of Stock Keeping Units (SKU)
  • Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label
  • Labelling of transport information
  • Guidelines for labels on Distribution Units (DU)
  • Bar code requirements for labelling with GS1-128 on Distribution Unit (DU)
• Shelf life
  • Determine total shelf life of a product and labelling requirements
  • Allocation of shelf life between the players in the value chain
  • Use of dynamic shelf life
  • Bilateral agreements for allocation of shelf life
• Traceability of a product
  • Guidelines for traceability, recall and withdrawal
  • Requirements for traceability of products and the product areas covered by this
  • Requirements for traceability information and labelling
  • Alternative ways to track and trace an item in the value chain

Development of a product

Suppliers are encouraged to work closely with packaging suppliers and customers in developing new products.

Suppliers are encouraged to work closely with suppliers of packaging and customers in the process of developing new products.

The grocery industry is heavily packaging intensive. Increasing demands and expectations from authorities and consumers for reduction in use of virgin fossil materials and replacing plastic, whenever possible, will be highly focused. “Design for recycling” will be crucial to meet future regulations, expectations, environmental requirements and recycling goals.

Reduction of food waste will have increased focus to meet reduction targets agreed by the trade and the Norwegian authorities.

The grocery value chain in Norway has for many years exercised responsibility by active ownership in the material return shemes for packaginxg Grønt Punkt Norge and by funding the company Matvett to prevent food waste. These organizations are available to support you introducing more sustainable products.

Areas affected by, and subject to guidelines from STAND are:

• Optimization and requirements for design of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU) with accompanying packaging materials
  • The modular system
  • Case fill rate
  • The top load labelling system
  • Automatic warehouse at distributor – increased understanding of depalletization process
  • Checklist
• Valid pallets and requirements for these
• Labelling requirements
  • Guidelines for how to label Consumer Unit (CU) with 2D barcode
  • Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)
  • Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label
  • Guidelines for labelling of Stock Keeping Units (SKU)
  • Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label
  • Labelling of transport information
  • Guidelines for labels on Distribution Units (DU)
  • Bar code requirements for labelling with GS1-128 on Distribution Unit (DU)
• Shelf life
  • Determine total shelf life of a product and labelling requirements
  • Allocation of shelf life between the players in the value chain
  • Use of dynamic shelf life
  • Bilateral agreements for allocation of shelf life
• Traceability of a product
  • Guidelines for traceability, recall and withdrawal
  • Requirements for traceability of products and the product areas covered by this
  • Requirements for traceability information and labelling
  • Alternative ways to track and trace an item in the value chain

Endringslogg

Requirements for design of Consumer Unit (CU)

Consumer Unit (CU) is the unit the consumer purchases in store.

Consumer Unit (CU) must be designed to optimize use of shop shelves and other furnishings. In addition, the information on the Consumer Unit (CU) should be visible even when the package is on a tray on the shelf.

Consumer Unit (CU) should be easy to open and to use.

Consumer Unit (CU) should be, included Stock Keeping Unit (SKU) and Distribution Unit (DU) adapted to the modular system, see Modular system

Unnecessary volume not containing the product itself in the packaging should be limited to what is necessary to protect the product. If necessary, secure against shrinkage (small, valuable Consumer Units (CU)).

Quantity (packing content) in Consumer Unit (CU) is determined by manufacturer, preferably in dialogue with distributor / retail chain.

Case fill rate shall be calculated. This is described in Case fill rate

On new products, it is expected that the case fill rate is higher than the average of the product group to which it belongs.

Measurement of the case fill rate related to the product launch windows was carried out by DMF until 2018. When switching to a new product classification system, historical data could not be compared, as the timeline and product groupings from 2014 were changed.

Efforts to increase the case fill rate in the grocery industry are important from both an environmental and efficiency perspective.

In collaboration with the industry, Tradesolution has developed some new reports for measuring the case fill rate in the grocery industry. Suppliers and retailer chains that have access to the EPD base can see the case fill rate for the products they have access to directly in the database. Here you can see the actual case fill rate on basic product (BASIS-level) and calculated case fill rate for the packaging levels above.

Log in her  and feel free to contact the EPD base helpdesk at epd@tradesolution.no if you have further questions.

Requirements for the design of the Distribution Unit (DU) and palletization

The Distribution Unit (DU) is the unit the Stock Keeping Units (SKU) is stacked on / packed in for transport to distributor.

Design of a Standard pallet (Standard pallet and Standard pallet – Low)

A Standard pallet must contain the same product (same GTIN) with a fixed number of Stock Keeping Units (SKU), in a fixed pallet pattern, with equal number of Stock Keeping Units (SKU)on each layer, and where labelling of unique product information on the Distribution Unit (DU) is possible.

The pallet structure shall contain as little excess volume of “air” as possible.

Standard pallet
Maximum pallet height must be 1200 mm incl. pallet. All pallets with total height above standard 1200mm with maximum height of 1250 mm to be agreed bilaterally between supplier and their customers.

Tolerance limit for existing products is 1249 mm.

Standard pallet – Low
Maximum pallet height shall be 600 mm incl. pallet.
Standard pallet – Low is used for low-frequency products and for products with short shelf life.

 

Principles for the construction of a palletpattern, central in calculation of top load weight, ref Top load labelling system.

When creating a pallet pattern, the following applies:

• A packaged Distribution Unit (DU) must be form stable and handling-friendly
• A Distribution Unit (DU) shall withstand regular transport, handling and storage through the value chain
• For single article Distribution Units (DU), all layers must contain the same number of Stock Keeping Units (SKU), and in a fixed pallet pattern
• Requirements for equal number of Stock Keeping Units (SKU) on each pallet / identical layer from pallet to pallet, with the possibility of variation between the layers
• The pallet should not have overhang
• The Stock Keeping Unit (SKU) should be placed on the pallet as it is exposed in the store
• Do not glue between pallet layers or between Stock Keeping Units (SKU) in the same pallet layer
• If a transport label or product label is attached directly to Stock Keeping Unit (SKU), the label must not overlap between 2 Stock Keeping Units (SKUs), either horizontally or vertically
• All pallets with total height above standard 1200mm with maximum height of 1250 mm to be agreed bilaterally between supplier and their customers.

 

Types of pallet pattern

When constructing Distribution Units (DU), the Stock Keeping Unit (SKU) must be placed in accordance with a given pallet pattern. These are referred to as bond stacking and column stacking. Pallets can also be built as a combination of bond stacking and column stacking.

Bond Stacking
Bond Stacking means that the units on every other layer are different, thus locking each other to a greater or lesser extent, but it reduces the compressive strength by approx. 40%.

Example of good pallet utilization and stacking with bond stacking, for good stability.

Column Stacking
Column stacking means stacking packages on top of each other without overlapping with other packages. This form of stacking gives maximum strength in terms of pressure load due to that the corners have better roll stiffness than the sides, but the stack gives poor stability without additional use of shrink wrap, strap, ribbon or similar.

Example of column stacking in the lower pallet layers, and bond stacking on the top layer. Combining the different stacking methods achieves good stack strength on the lower layers while the pallet is locked on top.
This is often a good alternative to intermediate pallet sheets.

Use of plastic to secure the pallet through the value chain

• Shrink / stretch film must not be so tight that the packages are deformed
• Shrink / stretch film must be tight around to the pallet
• No tail of plastic must hang loose
• Shrink / stretch film must not cover the fork lift openings on the pallet
• Shrink / stretch film must not be fastened around the pallet blocks

Use of intermediate pallet sheets
Intermediate pallet sheets must be minimized and used only if this is necessary to ensure quality and transportability of the pallet.
Intermediate pallet sheets are preferred if the alternative to this is intermediate cartons, “Ears” on the Stock Keeping Unit (SKU) or use of corner trims.
Where intermediate pallet sheets are used, the following requirements apply:

• The pallet sheet to be used for standard euro pallet should have dimensions of 750 mm * 1150 mm, ie 50 mm less than the length and width of the current load carrier
• The pallet sheet must be of rigid cardboard or corrugated cardboard.
  • The stiffness of the pallet sheet must pass the following test: If the short edge of the plate hangs 500 mm from a flat surface (eg a table), the pallet sheet must not bend down more than 50 mm, see illustration below
• No more than one intermediate pallet sheet between each layer
• The intermediate pallet sheet must not be fastened and be flat
• Only a whole intermediate pallet sheet, i.e. without holes or perforations, shall be used
• In case of questions, one is encouraged to contact the packaging supplier

See also Automated storage at distributor – greater understanding of the depalletization process

Example of intermediate pallet sheet that does not meet quality requirements. The intermediate pallet sheet is a thin paper and is not suitable for automatic warehouse systems

Example of what happens when using “thin paper” intermediate pallet sheets.
The sheet is hanging down in the robot. It blocks for sensors that check that the layer is separated from the rest of the pallet. The robot will stop, and manual error correction must be carried out before the machine can be restarted.

 

Example of pallet with intermediate pallet sheets, too big – hanging on outside the pallet.
Is not suitable.

 

Intermediate pallet sheets with holes. Is not suitable.

 

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Valid pallets

This is an animation that show what pallets are valid for distribution.

Requirements specifications can be downloaded here:

Requirements for approved EUR-pallets
Specification for reusable 1/1 plastic pallet
Specification for reusable 1/2 plastic pallet
Requirements specification for reusable 1/3 plastic pallet (from NLP)
Specification for reusable 1/4 plastic pallet
Requirements Specification reusable 1/2 wooden pallet
Requirements specification for 1/3 and 1/2 disposable cardboard pallet

Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label

Only product information should be labelled on a Stock Keeping Unit (SKU).
What information to be labelled depends on the type of product.

Intermediate Cartons shall be labelled as Stock Keeping Units (SKU)

Possible product information which SHALL or CAN be labelled on a Stock Keeping Unit (SKU)

GTIN – Global Trade Item Number
Includes GTIN-8 (8 digits), GTIN-12 (12 digits), GTIN-13 (13 digits) and GTIN-14 (14 digits).

All Stock Keeping Units (SKU) must have their own GTIN.
– For variable measure Stock Keeping Units (SKU), GTIN-14 with a leading digit 9 should be used.
– For other products, GTIN-13 is recommended.

Name of brand owner
– shall be shown in plain text either on the label or on the packaging.

Product name
– Must be written in plain text on the Stock Keeping Unit (SKU) product label.
– Must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, – and product description.
– The product description labelled on the Stock Keeping Unit (SKU) must be identical to the text in the Despatch Advice and Invoice.
-Product description should also contain a package description: for example, Coffee 12 x 500gr.

Batch / lot number
– A number generated by the manufacturer, used to achieve full traceability of product lot/batches in the value chain
– GS1-128 AI 10 must be used.

Shelf life information (“Best before” date, alternatively “Expiry date”)
– Must be labelled on all Stock Keeping Units which has shelf life printed on the Consumer Unit (CU)

GS1-128 AI 15 shall be used for «Best before date”
GS1-128 AI 17 shall be used for «Expiry date»

Net weight
– GS1-128 AI 3103 shall be used for variable measure Stock Keeping Units (SKU).
– Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Supplier’s item number
– can be labelled in plain text.

Table showing what SHALL or CAN be labelled:

Overview of product information that shall or may be labelled on Stock Keeping Unit (SKU):
Information	Human readable text	GS1-128 (bar code)	AI	Format
GTIN for Stock Keeping Unit (SKU)	Must be labelled	Must be labelled	01	n2 + n14
Name of brand owner	Must be labelled	Not labelled
Product name	Must be labelled	Not labelled
Batch / lot number	Must be labelled	Must be labelled	10	n2 + an..20
Shelf life	Must be labelled if shelf life is marekd on the Consumer Unit (CU)	Must be labelled if shelf life is marekd on the Consumer Unit (CU)	15, alternatively 17	n2 + n6
Net weight	Must be labelled for products with variable measures	Must be labelled for products with variable measures	310x	n4 + n6
Supplier’s item no.	Can be labelled	Not labelled

 

Example of GS1 Product label for Stock Keeping Unit (SKU), for a product with “Best before” date and a fixed weight:

Example of GS1 Product label for Stock Keeping Unit (SKU), for a product with “Expiry date” and variable measures:

Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label

The standard differs on different types of pallets depending on the content.

Only Standard pallet and Promotional Unit can provide a clear labelling of product information that applies to the entire pallet.

Standard pallet
A Distribution Unit (DU) containing the same product (same GTIN) with fixed count of Stock Keeping Units (SKU) and where labelling of unique product information on the Distribution Unit (DU) is possible.

It is recommended that a Standard pallet only contain Stock Keeping Units (SKU) with the same batch / lot number and shelf life date.

There are two different types of Standard pallet:

• Standard pallet with height 120 cm
• Standard pallet with height 60 cm (Standard Pallet – Low)

Standard pallet – Low is used for low-frequency products and for products with short shelf life.

A product can only be used on one type of Standard pallet, either 120 cm height or 60 cm height.

Standard pallet with height 120 cm

 

Standard pallet with height 60 cm (Standard pallet – Low)

 

 

Standard pallet shall be labelled with product and transport information.

Since product information and transportation information are usually known at different times, the practical solution is to label the device with two different labels:

1. Product information label (incl. SSCC)
2. Label with transport information

 

Product information on the GS1 product label for Standard pallet

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Standard pallet in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Standard pallet must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 02 must be used. The count of Stock Keeping Units (SKU) is also required on the Distribution Unit (DU) using GS1-128 AI 37
• The Distribution Unit’s (DU) own unique GTIN can also be used, using GS1-128 AI 01.

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label. Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number.
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the pallet have the same batch / lot number, this is indicated on the label in human readable text and bar code. If the pallet contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure products. Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
Shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
Must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked (Kan ikke stables).

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

 

Product labelling on Standard pallet

Overview of product information that shall or may be labelled on Standard pallet:
Information	Human readable text	GS1-128 (bar code)	AI	Format
SSCC (License Plate)1)	Must be labelled	Must be labelled	00	n2 + n18
GTIN for the Distribution Unit (DU)2)	Can be labelled	Can be labelled	01	n2 + n14
GTIN for the contained Stock Keeping Units (SKU)	Must be labelled	Must be labelled	02	n2 + n14
Count of Stock Keeping Units (SKU) on the DU	Must be marked except when DU is defined as an SKU	Must be marked except when DU is defined as an SKU	37	n2 + n..8
Product name	Must be labelled	Not labelled
Batch / lot number3)	Must be labelled	Must be labelled	10	n2 + an..20
Best before date4)	Must be labelled if Consumer Unit (CU) has printed best before date	Must be labelled if Consumer Unit (CU) has printed best before date	15	n2 + n6
Net weight	Must be labelled for products of variable measure	Must be labelled for products of variable measure	3103	n4 + n6
Gross weight	Must be labelled	Can be labelled	3300	n4 + n6
Max. top load	Must be labelled	Not labelled
Temperature requirements	Must be labelled if the product has temperature requirements	Not labelled
1) SSCC shall be indicated on the product label but permitted on both labels provided that the same number is used. 2) Can be used in a case for a transitional period. 3) If Batch / Lot No. is omitted on the Stock Keeping Unit (SKU), or it is different Batch / Lot No. on the Stock Keeping Units (SKU) this should not be labelled on the Distribution Unit (DU). 4) Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

 

Example on the GS1 product label for Standard pallet

 

 

Promotional Unit

A Unit defined as a Stock Keeping Unit (SKU) containing a fixed number of Consumer Unit (CU), intended for display in stores.

Promotional Unit can be 1/1 pallet, 1/2 pallet or 1/3 pallet.

Each Promotional Unit has its own load carrier.

Promotional Unit consisting of 1/2 pallet or 1/3 pallet are placed on a slave pallet. This constitutes a transport unit.

If slave pallet is omitted, this must be agreed bilaterally. For example, for 1/2 pallets with good stability, they can be tied together and exclude the slave pallet. This allows for better use of the pallet by increasing the Promotional Unit, thus allowing more items on the pallet.

 

Promotional Units are labelled with two levels of SSCC:

• At the lowest level is labelled with Product label for Promotional Unit as a Stock Keeping Unit (SKU) with the addition of SSCC. The product label is labelled on each Promotional Unit.
• The whole Promotional Unit is labelled with Standard shipping label for the groceries sector. If the Promotional Unit is a 1/1 pallet, this is labelled as a Standard pallet.

Labelling of Promotional Units provides increased traceability in the value chain

 

Product information on the GS1 product label for Promotional Unit

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Promotional Unit in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Promotional Unit must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 01 must be used

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label.  Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the Distribution Unit (DU) have the same batch / lot number, this is indicated on the label in plain text and bar code. If the Distribution Unit (DU) contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Consumer Unit (CU). Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure Stock Keeping Units (SKU). Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked.

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

 

Product labelling on Promotional Unit 

Overview of labelling of product information that may or may not be labelled on Promotional Unit:
Information	Human readable text	GS1-128 (bar code)	AI	Format
SSCC (License Plate)	Must be labelled	Must be labelled	00	n2 + n18
GTIN for Stock Keeping Unit (SKU)	Must be labelled	Must be labelled	01	n2 + n14
Product name	Must be labelled	Not labelled
Batch / lot number1)	Must be labelled	Must be labelled	10	n2 + an..20
Best before date2)	Must be labelled if Consumer Unit (CU) has printed best before date	Must be labelled if Consumer Unit (CU) has printed best before date	15	n2 + n6
Temperature requirements	Must be labelled if the product has temperature requirements	Not labelled
Supplier’s item number	Must be labelled	Not labelled
1) If Batch / Lot No. is omitted on the Stock Keeping Unit (SKU), or it is different Batch / Lot No. on the Stock Keeping Units (SKU) this should not be labelled on the Distribution Unit (DU). 2) Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

 

Example of Stock Keeping Unit (SKU) label with SSCC for Promotional Unit

 

Units where product information can not be entered on their own label

Mixed pallet
Two variants of Mixed pallets are described; with and without intermediate pallet.
On Mixed pallet it is not possible to enter product information on its own label.

Mixed pallet without intermediate pallet:
Pallet consisting of several different products.

Mixed pallet with intermediate pallet:
Pallet consisting of several different products, where each product is stacked in one or more layers, and where each different product is separated by an intermediate pallet.

The choice of type of mixed pallet depends, among other things, on handling costs, transport / environmental costs and storage technology and must be agreed bilaterally between the parties.
Packaging and stability of the Stock Keeping Unit (SKU) must be considered when choosing type of a Mixed pallet.

If intermediate pallet(s) are used, it shall always be ordered the amount of Stock Keeping Units (SKU) to complete a layer.

Mixed pallet (both with and without intermediate pallet) is labelled with Standard shipping label for Norwegian grocery sector.

 

Customer packed pallet

When a supplier assembles products for delivery to the final recipient, the products are packaged and labelled with SSCC at two packaging levels.

Customer packed units are labelled for delivery to the end-user and the Distribution Unit (DU) is labelled for delivery to the transit warehouse.

On Customer packed units it is not possible to enter product information on the Distribution Unit (DU) label.

 

A customer-packed pallet can be Customer packed unit – multiple route, multiple customers, Customer packed unit – single route, multiple customers, or Customer packed unit – single customer.

• Customer packed unit – multiple route, multiple customers is a unit of products for two or more end recipients that will be split in transit storage.
• Customer packed unit – single route, multiple customer is a unit of products for two or more end recipients on the same route or transport.
• Customer packed unit – single customer is a unit of products that are intended for only one end recipient.

This Customer packed units does not need to have its own load carrier and is being loaded on a standardized transport unit (for example, an EUR pallet).

Customer packed unit – multiple route, multiple customers and Customer packed unit – single route, multiple customer is stacked in columns per. end receiver.

Customer packed unit – multiple route, multiple customers is split after products receipt in the transit warehouse, and the individual Customer packed unit is forwarded to the final recipient. A prerequisite is that all Customer packed units located on one Distribution Unit (DU) are destined for the same transit warehouse.

Guidelines for labels on Distribution Units (DU)

Placement of labels on pallet
Two types of labels shall be used; label for product information and label for transport information.

• The minimum requirement is that the pallet should be labelled on two sides with both label types; one of the short sides of the pallet and the right hand long side (seen from the short side).
• Product and transport label must be on the same side of the pallet.
• When multiple labels are used on the same side of the pallet, the labels should be placed underneath each other. The label that contains SSCC placed at the bottom.
• The labels should be placed so that the bottom of the lowest bar code should be at least 400 mm above the floor, and the top of the uppermost bar code should not be more than 800 mm above the floor.
• The label should be placed at least 50 mm from the vertical edge.
• For pallets lower than 400 mm the labels should be placed as high as possible.
• If all information is known at the time the pallet is labelled and there is space on the label, all information can be labelled on one single label.
• To ensure automatic reading of the bar codes Promotional Units, Customer packed pallet and Mixed pallet should only the transport label on the transport unit be readable
• Product label on Standard pallet with height 60 cm (Standard pallet – Low) should be placed as high as possible.

Identical information
Same information (GS1-128 AI) shall only appear once on the product and transport label.
This means in practice that the same information can not be repeated on the same label or that the same information may appear on multiple labels on the device (pallet).
The exception is SSCC which is allowed on both labels if it is an identical number used.

Size and design of the labels
The following recommendation applies:

• The width of the label should be 105 mm or 148 mm
• The height of the label may vary

Recommended formats are:

• A5 (148mm x 210mm)
• A6 (105mm x 148mm)
• 105 mm x 192 mm

Quality of labels

• It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit
• It is a requirement that the quality of GS1-128 bar codes minimum meets print quality with “Grade C” according to Standard ISO / IEC 15416.
  To achieve “Grade C” when reading, “Grade B” or better by printing is recommended
• When affixing the labels, it is important to ensure that the bars in the GS1-128 symbol are correct and unbroken (avoid “wrinkling” on the label).

Checklist for optimization of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU)

The checklist is a declaration that the standard is complied with

Download active pdf here.

 

 

 

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Determine total shelf life of a product and requirements for labelling this

The responsibility for determining type of shelf life labelling and total shelf life lies with the manufacturer. The shelf life is calculated from the time the product is ready for sales, for example from after the product has been matured and checked.

The actual shelf life of the product is affected by a variety of conditions, primarily the properties of the raw material and the external impact.
The manufacturers are encouraged to assess whether dynamic shelf life labelling can be practiced.
This means that total shelf life can be expanded when conditions allows for this to be done.
The number of days marked on a product may therefore be more than the number of shelf life on selected products.
According to the Mattilsynet (Norwegian Food Safety Authority), the use of dynamic shelf life is within the current regulations.

Labelling
The packaging (Consumer Units (CU) and Stock Keeping Units (SKU)) shall be labelled according to the manufacturer’s choice of type of shelf life and total shelf life.

Evaluate the use of dynamic shelf life

“Expiry date overdue” is the main reason for food waste in the value chain. A more flexible shelf life labelling throughout the year could help reduce food waste.

Shelf life is affected by several conditions that may vary. It is possible to specify increased shelf life in periods of time or for batches. This is termed as “dynamic shelf life». In practice, it means that overall shelf life can be expanded when conditions give the opportunity to do so.

The supplier should inform the customer if dynamic shelf life is applied.

According to the Mattilsynet (Norwegian Food Safety Authority), the use of dynamic shelf life within the current regulations: “It is the manufacturer who assesses and puts the shelf life of the food products. Manufacturers know the raw materials and processes used. Shelf life should be based on common and realistic conditions for transportation, storage and sales. This does not prevent manufacturers from taking into account that there may also be different external conditions for the shelf life of the foodstuffs. In practice, manufacturers often put the shelf life out of the most demanding but realistic conditions throughout the year. If the business has full control and overview of the terms, nothing stops them from choosing different shelf life throughout the year for the same product. This means the food is given a shelf life that is adapted to season, temperature and other conditions.”

More information can be found here: http://www.mattilsynet.no/mat_og_vann/merking_av_mat/generelle_krav_til_merking_av_mat/holdbarhetsmerking_paa_matvarer.2711

Examples of using dynamic shelf life that could have longer shelf life than often is the practice today:

• Different temperatures throughout the year

In order to make a realistic assessment, the producer assumes that the products are stored in normal outdoor / room temperature for a shorter period of time through the value chain, such as transshipment, stock refills in stores, consumer carts, transport from store to home and in the home (in and out of the fridge and on the kitchen table). In summer, the outdoor / room temperature is higher and thus has a greater impact on shelf life. To make a realistic assessment, it’s normal to take into account the assumptions in the summer period and determine the shelf life based on this, and the same shelf life is normally used throughout the year.

• Different shelf life based on different technology

Different companies may have different production methods and / or hygiene standards. To make a realistic assessment, the starting point is the technology that provides the shortest shelf life.

• Different shelf life of raw materials

The regulations or internal rules stipulate that raw materials that are up to x days “old” may be used at any given time in the manufacturing process. Then the shelf life is determined by using x-day-old raw material each time. This even though you often use fresher raw materials than x days.

• Different raw material quality

Raw material quality may vary naturally over a year, and in some cases this may affect shelf life. To make a realistic assessment, the raw material with the shortest shelf life is used, and normally uses the same shelf life of the finished foods throughout the year.

Dynamic shelf life and the EPD database

There is no need for any changes to the EPD database to utilize dynamic shelf life.

It is the product’s shortest shelf life during the year the supplier must register in the EPD database.

Guidelines and routines for tracking, recall and withdrawal

In its framework, STAND has defined guidelines, recommendations and best practices for how products should be marketed in the distribution chain, and how information on this should be exchanged between the parties.

Central to this is the consideration of the consumer and his expectation for safe food.

The guidelines for tracking, recall and withdrawal do not define food quality requirements, but describe what procedures and processes the industry has established to mitigate any unwanted effects should an incident or crisis occur in a product.

Best practices

The guidelines describe best practices in this area.
By following STAND’s framework, the guidelines will be achievable for all parties involved.

Some important prerequisites for best practice.

• Routines and processes must be simple, predictable and intuitive
• Products and deliveries / load carriers must be labeled in a unified, standardized and correct way so that they can be traced through the value chain.
• Product information must be registered in the Tradesolution EPD
• Detailed tracking information must be exchanged digitally between the parties and follow the products through the value chain.
• Action must be taken quickly when an incident or crisis occurs

By ensuring that a total industry complies with STAND’s framework, consumers’ demands and expectations for safe food are fully met.

Objective of the guidelines

The guidelines are aimed at “Contribute to meet consumers’ expectations for safe products”.

Target Audience:

• Anyone who may or will be involved in any recall or withdrawal
• Everyone involved in the production or labeling of products and packaging covered by the guidelines

Products / areas to which the guidelines apply:

• Recommended for food and non-food products, except pharmaceuticals
• Other inputs, plants, animals or foodstuffs
• Materials and articles that are intended to come into contact with, or may affect, inputs or foodstuffs.

Medicines are exempt from the guidelines. Here we refer to separate regulations, not described here.

Certain types of food may be subject to additional regulatory requirements beyond what is described here. An example is the EU’s new tobacco directive (EU 2014/40) which make the requirements for traceability of tobacco products more stringent, but is not described here.

Prepare a Risk Analysis

At the heart of the legislation is the duty of each company to carry out a risk analysis of the health risks the products represent and how the company will relate to this in terms of traceability.

The purpose of the analysis is to reduce / prevent risk through

• Withdrawal of products from the market, or
• Efficient notification or recall of products from consumer

This assumes that the parties are aware of the risks the products may pose and have a preparedness that ensures that they react quickly, correctly and effectively in unwanted incidents. A Risk Analysis should therefore be performed on new products based on an intended relevant incident, so that it can be implemented as quickly as possible should a real incident occur for the product.

The risk analysis consists of three elements that both the government and industry should work on in an equal way:

• Risk Assessment
• Risk Management
• Risk Communication

See more about risk analysis here Design and content of a Risk Analysis.

Product tracking requirements

The legislation requires that each company must have systems to document which products are purchased from each supplier and which customer has purchased the company’s finished products.

This also includes raw materials and other input that are covered by the legislation.

There is no requirement in the legislation for which type of systems to be used for this.

Businesses can practice more comprehensive tracking systems than the minimum regulatory requirements require, but this is either based on self-imposed requirements or agreements with, and orders from the contracting parties.

Tracking means being able to follow the physical flow of goods. This is often referred to as chain traceability, and assumes that all parties meet the requirements and follow the guidelines for tracking.

Tracking takes into account the legal requirements for all parties to be able to trace their products one step forward and one step back in the value chain.

Tracking one step forward:

This means to the address the products are delivered to.

An invoice system containing information about item number / item name, customer number / customer name and invoice date is sufficient to be able to trace one step forward in the value chain.

If the company is using batch/lot numbers for their products, this should be included in the invoice, despatch advice and the like, or linked directly to the company’s own systems.

Tracking one step backward:

This means the address from which the products are delivered.

The company must keep a log of received products describing which products were purchased from whom and in which quantitiy, and date.

If the addresses for where products are delivered from or delivered to are not in accordance with the legal ownership of the products and the invoice process, this should be agreed separately between the parties.

Producing

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant in production of a product to be traded in the grocery industry.

The process includes producing the product (Consumer Unit), packing it to a sales unit, usually a Stock Keeping Unit (SKU), fully packaged and labelled.

The areas described are:

• Total shelf life of the product
• Possible use of dynamic shelf life
• Traceability requirements for raw materials, input factors and finished products
• Labelling of traceability information on Consumer Unit (CU) and Stock Keeping Unit (SKU)
• 2D-labelling on Consumer Unit (CU)
• Labels on Stock Keeping Units (SKU)
  • Content, and which information that should be in the bar code on the label
  • Placement
  • Requirements when using GS1-128

Requirements for tracking information and labeling

The main purpose of the tracking information is to lay the groundwork for effective blocking, withdrawal or recall of products.

Central tracking information is:

• GTIN (Global Trade Item Number) – Unique identification of products
• GLN (Global Location Number) – Unique identification of trading parties, pick-up points, delivery points etc.
• SSCC (Serial Shipping Container Code) – Unique identification of load carriers / pallets
• Batch / lot number – A unique batch or lot number defined by supplier / manufacturer
• Shelf life – Either Best Before date or Last Consumption Date

It is a requirement that the products are labeled to enable tracking.

The marking must be affixed to the product packaging and legible.

The following applies to finished goods traded between supplier and distributor / retailer:

Information to be marked:

• The name of the supplier
• Product name/description
• Product number identified with a GTIN.
• Best before date / last day of consumption date, if required
• Batch / Lot number, if required

Load carrier (for example pallet) shall be marked with SSCC.

The sender must in his system have an overview of which recipient the product was sent to, and also the recipient must have an overview of which sender the product was received from. Both sender and recipient must be identified with GLN.

Sender shall in his system register:

• Quantity sent
• Shipping Date
• Reception date (if known)

Recipient shall in his system register:

• Quantity received
• Shipping date (if known)
• Reception Date

The following applies to raw materials and other inputs:

• GTIN should be used for identification of inputs / raw material, if available
• GLN should be used for identification of sender / suppliers, if available

More about tracking information and how the product can be tracked in the value chain is described here Recommended traceability methods in the value chain.

Determine total shelf life of a product and requirements for labelling this

The responsibility for determining type of shelf life labelling and total shelf life lies with the manufacturer. The shelf life is calculated from the time the product is ready for sales, for example from after the product has been matured and checked.

The actual shelf life of the product is affected by a variety of conditions, primarily the properties of the raw material and the external impact.
The manufacturers are encouraged to assess whether dynamic shelf life labelling can be practiced.
This means that total shelf life can be expanded when conditions allows for this to be done.
The number of days marked on a product may therefore be more than the number of shelf life on selected products.
According to the Mattilsynet (Norwegian Food Safety Authority), the use of dynamic shelf life is within the current regulations.

Labelling
The packaging (Consumer Units (CU) and Stock Keeping Units (SKU)) shall be labelled according to the manufacturer’s choice of type of shelf life and total shelf life.

Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)

The purpose of a standard for labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU) with subsequent electronic data interchange (EDI) is to:

• Achieve an efficient flow of products from manufacturer to consumer
• Ensure traceability through the value chain, which is important in case an event or crisis occurs which requires a recall or withdrawal of the product

The basis for this is the labelling of each Distribution Unit (DU) with a unique SSCC.

This code is the main key in the electronic Despatch Advice and is linked to information about which GTIN which the Distribution Unit (DU) consists of, the number of Stock Keeping Units (SKU) batch / lot number and shelf life information if applicable.

SSCC is the most important key for traceability of Distributions Units (DU), see Recommended way to track and trace a product in the value chain.

For that reason SSCC shall not be reused until after a minimum of 6 years.

Recommended way to track and trace a product in the value chain

Efficiency and traceability are achieved primarily through:

• Synchronization of product information between the various parts in the value chain.
  The purpose is for all players to obtain correct and coherent product information about the products. Between suppliers and retail chains in the Norwegian groceries sector the EPD database is used for the registration, quality assurance and distribution of product information.

• Electronic Data Interchange (EDI) between the actors.
  The purpose is to reduce manual operations and reduce lead time in the value chain. The most widely used EDI messages are order, order confirmation, Despatch Advice and invoice.

• Standardized labelling of outer packaging.
  The purpose is to contribute to faster and more efficient shipping, distribution and receipt of the products. A common labelling concept for the grocery industry is used here; GS1-128.

To ensure rational product and information flow in the distribution chain, STAND recommends a uniform labelling of Stock Keeping Units (SKU) and Distribution Units (DU).
This simplifies the labelling of the manufacturer / supplier, shipment by shipper / freight forwarders and merchandise at distributor / store.

This labelling concept also applies to types of transport units other than pallets.

For fish and fish products, the following applies:
STAND has decided to refer to Norwegian Standard NS17099:2020 “Information technology — Fishery and aquaculture products — Requirements for labelling of distribution units and pallets in the trade of fishery and aquaculture products” for products that fall under this category. This standard replaces todays NS9405: 2014 “Fish and fish products. Requirements for labelling of distribution units and pallets in the trade of fish and fish products», and is valid as from 30. September 2020.

It can be ordered from Standard Norway.

Guidelines for labelling of Stock Keeping Units (SKU)

Type of bar code symbol
When labelling with bar code on Stock Keeping Units (SKU) GS1-128 bar code shall be used.

Identical information
Same information (GS1-128 AI) should only occur once per label.

Size and design of labels
Since the shape and size of the Stock Keeping Units (SKU) is highly varied, size and design of the label may also vary.

Quality of labels
It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit. Therefore, the quality of GS1-128 bar codes must minimum fulfill print quality with “Grade C” according to standard ISO / IEC 15416.
To achieve “Grade C” when reading, “Grade B” or better is recommended at printing.
Quality of labels and bar codes can be verified at GS1 Norway.

Placement of labels on Stock Keeping Units (SKU)
It is recommended that the Stock Keeping Units (SKU) is labelled on two sides.
If labelling can only be done on one side, the label on the Stock Keeping Unit (SKU) must be on the same side as one of labels on the pallet (consistent orientation).

By column stacking the Stock Keeping Unit (SKU) label will be oriented towards one pallet label (either on the short or long side of the pallet).

 

By bond stacking (like bricks) the Stock Keeping Unit (SKU) label could be oriented towards the two labels of the pallet. That is, both on the short and the long side of the pallet.

  

Bar codes
The following recommendations apply to GS1-128 bar code symbols:

• The orientation of the bar code should be such that the bars are vertical (picket fence).
• Size factor is in the range of 25 to 94% of nominal size.
• The minimum bar code height is 13 mm.
• Minimum 5 mm height on human readable text.
• The location of the bar code should be such that the bottom of the bar code is about 32 millimeters from the bottom of the Stock Keeping Unit (SKU).
• The bar code symbol included quiet zone (margins), must be at least 19 millimeters from a vertical edge to avoid damage to the label.
• If the height of the Stock Keeping Unit (SKU) is less than 50 mm, the bar code should be placed as high as possible and information to be written in plain text can be placed to the left of the bar code

 

Placement of bar code symbols on the Stock Keeping Unit (SKU)

Placement of bar code symbols on Stock Keeping Units (SKU) with height less than 50 mm

 

105 Producing

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant in production of a product to be traded in the grocery industry.

The process includes producing the product (Consumer Unit), packing it to a sales unit, usually a Stock Keeping Unit (SKU), fully packaged and labelled.

The areas described are:

• Total shelf life of the product
• Possible use of dynamic shelf life
• Traceability requirements for raw materials, input factors and finished products
• Labelling of traceability information on Consumer Unit (CU) and Stock Keeping Unit (SKU)
• 2D-labelling on Consumer Unit (CU)
• Labels on Stock Keeping Units (SKU)
  • Content, and which information that should be in the bar code on the label
  • Placement
  • Requirements when using GS1-128

103 Production

The process is a generic description of a production process and may vary in different manufacturing companies.
Order of activities described may also differ from how this is done in your business.

Production includes the following sub processes:

• Schedule, prepare and facilitate production
• Conduct production
• Palletization and storage
• Logging traceability information

Areas affected by and subject to guidelines from STAND are:

• Assessment of the shelf life of the raw materials included in the production and determination of total shelf life of finished products, type of shelf life date and assessment of the possibility of dynamic shelf life
• Valid pallets and requirements for these
• Packaging requirements, all packaging levels
• Traceability requirements for raw materials, input factors and finished products
• Requirements for product labelling of Consumer Units (CU),  Stock Keeping Unit (SKU) and Distribution Unit (DU), content and placement of label
• Requirements for the construction of the Distribution Unit (DU)
• Use of intermediate pallet sheets
• Use of plastic wrap for securing the pallet through the value chain

101 Product development

This process varies from business to business, and from product to product.

STAND has no guidance on how to do this but has developed guidelines within the following main areas:

• Optimization and requirements for design of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU) with accompanying packaging materials
• Valid pallets and requirements for these
• Labelling of Consumer Units (CU), Stock Keeping Units (SKU) and Distribution Units (DU)
• Shelf life and assessments related to this
• Guidelines for traceability, recall and withdrawal, with requirements for traceability, traceability information, and labelling

FAQ Tobacco Directive in Norwegian retail sector

(Last changed February 17, 2022)

Implementation of the Tobacco Directive in Norwegian retail sector

What is the Tobacco Directive?

The Tobacco Directive is an EU regulation, based on the WHO Framework Convention on Tobacco Control. The protocol entered into force on 25 September 2018. Both the EU and Norway have committed themselves to following this protocol.

The protocol stipulates that the parties shall provide a licensing, labeling and tracking system for tobacco products and associated economic activity in connection with the production and transport of tobacco products and production equipment. This is often referred to as the Tobacco Directive.

The directive will be implemented through 3 regulations:

EU 2018/574 Implementing Regulation: Technical standards for the establishment and operation of a tracking system for tobacco products.

EU 2018/573 Commission Delegated Regulation: Key elements in data storage agreements that are to be included as part of a tracking system for tobacco products.

EU 2018/576 Commission Implementing Decision: Technical standards for safety features applied to tobacco products.

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Which products are covered by the Tobacco Directive, and when will this enter into force in Norway?

The Tobacco Directive covers all tobacco and tobacco-related products, as well as equipment for their production.

For EU members, the tracking system for cigarettes and roll-your-own tobacco came into force on 20 May 2019. For other tobacco products, 20 May 2024 applies.

The Tobacco Directive was incorporated into the EEA Agreement on 4 February 2022. For Norway (and other EFTA countries), the implementation deadlines follow transitional provisions laid down by the EEA Committee. As of 4 February, implementation deadlines have not been decided.

The Commission Delegated Regulation came into force on 1 November 2020 in Norway.

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What is the Implementing Regulation?

The Implementing Regulation describes technical standards for how the tracking system should make it possible to track the entire journey the product has been on, from production until the tobacco product is ready for sale to the consumer.

Unique identification code for all players

All players that are part of the supply chain must have a unique identification code. This also applies to facilities where tobacco products are produced, stored or put on the market, such as production premises and machines, warehouses, terminals, vending machines, etc.

Unique identification mark on all products at all packaging levels

The identification code shall be included in a unique identification mark affixed to individual packages and / or packaging containing more than one individual package of tobacco products (aggregated units). The mark shall make it possible to determine the date and place of production, as well as the route to be used from the production stage to the retailer.

An item cannot be legally traded unless it bears a unique identification mark.

Registration and reporting of tracking information

The Implementing Regulation imposes on market participants a responsibility for the registration and reporting of tracking information. Manufacturers and importers are required to enter into an agreement with a supplier of a Primary Repository to which they must report. The Primary Repository shall be financed by the manufacturer or importer, but operate independently of them.

The Commission has entered into an agreement with a Secondary Repository to collect the information from the Primary Repository. It is in the Secondary Repository that complete tracking information from production to the first retail outlet can take place.

To ensure the independence of the tracking system, and to ensure that it is controlled by national authorities, the authorities shall designate an independent ID issuer who will be responsible for generating the unique identification marks used to track the products. All players will have to buy the stamps for a fixed unit price determined by the ID issuer.

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What is the Commission Delegated Regulation?

The Tobacco Damage Act requires a license to import, export and produce tobacco products and equipment for tobacco production. Permission shall be granted to the legal entity that has the financial interest in and responsibility for the business. Legal entity includes legal persons and sole proprietorships, and thus excludes that private persons can obtain a license.

Different types of grant are distinguished; for example, there is one license for import and another one for production. Imports of tobacco products for own use (private import) are not covered by the regulation.

Together with the registration scheme for retailers and wholesalers that came into force in January 2018, the regulation will lead to better control of the entire supply chain for tobacco products and production equipment in Norway.

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What is the Commission Implementing Decision?

In 2018, the Parliament of Norway passed a new § 16 h in the Tobacco Damage Act, which states that it is prohibited to bring into Norway, sell or move from production facilities individual packages of tobacco products that are not marked with a security feature.

The ban does not apply to private import of tobacco products for personal use.

The security feature shall, together with the tracking system, facilitate the better monitoring and enforcement of compliance with the requirements of the Tobacco Directive.

The security feature must be secured against tampering, and consists of visible and invisible elements which are applied to the package in such a way that it cannot be removed, cannot be erased and is not hidden or can be broken. The security feature must not be placed in a way that conflicts with other statutory requirements for the labeling of tobacco products, e.g. requirements for health warnings. The detailed rules are laid down in the Commission Implementing Decision.

The purpose of the Commission Implementing Decision is to enable the authorities and consumers to identify legally produced and imported tobacco products.

The manufacturer or importer of the goods is responsible for the security feature being produced and applied to the packages before the products are made available on the Norwegian market.

Unlike the unique identification mark associated with the tracking system, the security feature will only be visible on individual packages.

It follows from the Commission Implementing Decision that individual packages of cigarettes and roll-your-own tobacco that are produced or imported into one of the EU Member States after 20 May 2019 must have a security feature affixed.

For other tobacco products, the requirement applies as of 20 May 2024.

For Norway and the other EFTA states, deadlines and possibly transitional periods are stipulated in the agreement on the incorporation of the decision into the EEA agreement.

The Commission Implementing Decision establishes a common set of rules with technical standards for the design of the security feature. It is a requirement that the security feature must consist of at least five different authentication elements. The Commission Implementing Decision contains an overview of recommended proposals for authentication elements that national authorities can choose from, and combine, when the requirement for the security feature is to be determined in national law.

To prevent outdated solutions, the Commission Implementing Decision lays down rules that the authorities may lay down provisions for the regular replacement of authentication elements.

 

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How can the Retail sector prepare for the implementation of the Tobacco Directive?

The new amendments to the Tobacco Directive are expected to be introduced in stages.

The Commission Delegated Regulation entered into force on 1 November 2020, with transitional schemes until 15 June 2021.

It has not been decided when the Commission Implementing Decision and the Implementing Regulation will enter into force in Norway. It is assumed that this will not happen until 2022 at the earliest. Proposals for supplementary rules for Norway have been sent to the EEA Commission in Brussels for consideration, so that the regulations can be incorporated into Norwegian law by reference in regulations, with the changes that will follow as of adaptations to the EEA Agreement.

A natural order indicates that the Commission Implementing Decision is introduced first, and that the Implementing Regulation follows thereafter. For both, transitional rules will apply, which will be decided upon incorporation of the regulations into the EEA Agreement.

Through STAND, DMF and DLF will follow the political process as it moves forward. STAND will establish a project group to study the practical consequences of the introduction of the Tobacco Directive, with a mandate to propose actions that the retail sector can initiate so that a transition can take place in a best possible way.

Some key areas that the group will look into:

• Identifiers to be used in the identification mark, and for all the players involved, to see how these can interact with the identifiers used in the retail sector today (GS1 standards)
• Study how repacking for different types of aggregated units and labelling with the new identification mark will affect work processes, especially in relation to the fact that trade in Norway has a high degree of automated processes, which now might change for tobacco products.
• Equipment needed to record tracking information and how it can be exchanged
• Gain experience from how the implementation has been done in some other selected countries, to ensure as smooth and good introduction as possible in Norway.

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Do you need more information?

If you have further questions related to the implementation of the Tobacco Directive, you can address these to support@stand.no

 

Routine at delays

Routine at delays

In case of delay, a distinction is made between notified and unannounced. Separate routines have been established for:

• Routine of notified delays
• Routine of unannounced delays

Routine of notified delays (A7 in timeline)

Any delay must be notified immediately with the information available at the time of notification. Message must be sent to the department of category / purchase and the department of logistics.

1. Supplier confirms delivery capacity of complete delivery in U-6. If the supplier is not able to deliver, is currently notified new delivery date, (same to all customers, given compliance with other deadlines)
2. The supplier confirms the final delivery date in U-3. Actual postponement / postponed launch time should be equal to all customers, given compliance with routines / deadlines in this standard. Volume is distributed based on supplier’s forecast to chain timeline A4. Time deviations that do not affect product at retailer Monday week 0, must be resolved. If the delay exceeds three weeks, ie longer than Monday week 1, the routine applies to unannounced delays, see below.
3. Deferred delivery date is considered in order sent in U-3 (A6).
4. The deferral is dealt with in the evaluation of launch, bilaterally between supplier and customer.

 

Launch shall not be postponed

Launch will not be subject to major deviations between forecast (A4 in timeline) and actual ordering. In general, product news should be ready for pick-up from supplier from Monday U-2, or at the agreed time.

146 Requirements specification for 1/3 and ½ disposable cardboard pallet

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Requirements specification for 1/3 and ½ disposable cardboard pallet

STATUS: MUST BE BILATERALLY AGREED

Disposable 1/3 and ½ pallet in cardboard is not an approved pallet in the Norwegian grocery industry and must be agreed bilaterally if it is to be used

• The size of 1/3 pallet, Gross size: 400 mm x 800 mm
• Size of ½ pallet, Gross size: 600 mm x 800 mm
• The pallet must be made of a type of cardboard material, which can be recycled together with the shop’s other cardboard / corrugated board
• The height from the floor to the bottom of the pallet must be 10 cm, corresponding to the EUR pallet requirement, so that all types of forklifts and hand pallet trucks will be able to handle the pallet, with or without cargo, as on a EUR pallet
• The pallet must withstand a load of 250 kg and be able to withstand sideways loads.
  It must withstand that heavier products are stored for a period of time without changes in form and be “compressed”. (Deflection test should be completed before final production).
• The underside of the pallets must be resistant to “scrub driving” onto the trucks and it must withstand moisture
• A non-reusable pallet in cardboard is expected to be an activity pallet, where the use of hand pallet truck on the short side can be avoided
• The surface of the pallet must not be so slippery that the products slip off. There should be some arrangement that prevents this. The pallet must be designed so that the pallet can be plasticized with stretch film all the way down to the skids

145 Requirements Specification reusable ½ wooden pallet

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Requirements Specification reusable ½ wooden pallet

STATUS: MUST BE BILATERALLY AGREED

Recycled ½ pallet in wood is not an approved pallet in the Norwegian grocery industry and must be bilaterally agreed if it is to be used

Size, Gross size: 600 mm x 800 mm

• The pallet must be made of wood material that is dimensioned for reuse, which means that skids and plaits must be made of ¾ – 1″ boards (1.9 – 2.5 cm).
• Height from the floor up to the bottom of the pallet must be 10 cm, corresponding to the requirement for the EUR-pallet, so that all types of forklifts and pallet trucks will be able to handle the pallet, with or without load.
• The bricks on the pallet must be placed so that the hand pallet truck can be used both on the short side and the long side.
• The skids should be designed in a way that makes it easy to pull the hand pallet truck over them without damaging the pallet or the hand pallet truck get stuck.
• The pallet must be so strong that it does not give more deflection than required after the ISO 8611 test. (Deflection test, where accepted deflection limit is 26 mm, based on test descriptions given).
• The pallet must withstand a load of 500 kg.
• When installing a pallet, use screws or nails that do not loosen and damage the products on the pallet.
• The surface must not be so slippery that the products slip away from the pallet.
• The pallet should not weigh more than 10kg

144 Specification for reusable ¼ plastic pallet

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Specification for reusable ¼ plastic pallet

STATUS: MUST BE BILATERALLY AGREED

Reused ¼ pallet in plastic is not an approved pallet in the Norwegian grocery industry and must be bilaterally agreed if it is to be used.

Requirements specification only applies when a return system has been established for such pallets.

• Size, gross size
  • 600 mm (exposure front) x 400 mm
• Load weight
  • The pallet must withstand a weight of 200 kg
• Storage
  • The pallet must be at a size that 4 pcs. can be placed on a EUR pallet when placed in a stall / automated warehouse
• Design
  • The pallet with skids / blocks must be such that it can be handled by forklift and / or hand pallet truck
• Friction
  • The pallet must have continuous friction without friction coating so that the products do not slip off
• Pallet deck
  • The pallet deck should be flat and adapted to attach to film strapping
  • Ventilation through the deck to avoid condensation
• Cleaning
  • The pallet should be easy to keep clean, without collecting residual water
• Colour
  • The pallet should be of neutral colour, so it appears as clean and attractive in the store
• Material
  • The pallet must be made of a material that meets the environmental and producer responsibility requirements and does not contain heavy metals
  • Fire classification must be specified and any UV stabilizer to be defined
  • The pallet must be recyclable

143 Requirements specification for reusable 1/3 plastic pallet (from NLP)

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Requirements specification for reusable 1/3 plastic pallet (from NLP)

STATUS: APPLICABLE STANDARD

 

• Weight
  • The weight of the pallet shall not exceed 8 kg

 

• Max load
  • Dynamic load: The pallet must handle a load of at least 200 kg according to the requirement of immersion, see dimensions at maximum load, last point
  • Static load (on floor): 400 kg

 

• Dimensions at maximum load
  • Maximum outer dimension (LB) 403 x 803 mm
  • Minimum outer dimensions (LB) 397 x 797 mm
  • Height: 130-160 mm
  • Tunnel opening: 100-140 mm
  • Tunnel opening: Reduction of the top deck at weight load shall not be less than 100 mm

 

• Material
  • The material must withstand handling at +40 ºC to -35 ºC
  • The material must be HDPE or other materials of equivalent strength and life span
  • The material shall have properties that ensure that the pallet is resistant to stretch and deformation within specified temperatures throughout the lifetime of the pallet
  • Fire classification must be specified
  • The heavy metals (Lead, Cadmium, Mercury and Chromium) in the colouring pigment should not exceed 100 ppm
  • The pallet should be washable and 100% recyclable

 

• Characteristics
  • Friction on the top of the pallet, underneath and below the skids / legs should be such that the pallet works with a normal handling of products with different material types such as plastic box, corrugated board, wooden pallet, half pallet, quarter pallet, 1/1 pallet, 1/3 pallet etc
  • The friction must be constant during the lifetime of the pallet
  • The norm for friction is EUR wooden pallet

 

• Marking and traceability
  • The pallet must be marked with the manufacturer, material, production time, recycle symbol, and who owns the pallet
  • The pallet shall be marked with a logo or other markings visible from 2 sides

 

• Handling the pallet
  • The pallet must be handled from both sides, as well as work with fork lifts and automatic warehouse handling systems
  • The pallet will work in standard pallet turners, pallet stackers and pallet magazines

 

• Design
  • The pallet must be designed so that no pockets can collect dirt, water, etc. This is to minimize the risk of bacterial collection
  • The pallet must be designed for cleaning with pressure wash and / or immersed in
  • water
  • The overall environmental impact of the pallet / material must be documented
  • The load deck / top deck shall be flat to avoid damage to products and to make manual handling easy
  • The colour of the pallet must be neutral

142 Specification for reusable ½ plastic pallet

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Specification for reusable ½ plastic pallet

STATUS: APPLICABLE STANDARD

 

• Weight
  • The pallet weight should be max 10 kilos

 

• Max load
  • Dynamic load: The pallet must handle a 500 kilo load placed in a standard storage rack or automatic storage
  • Static load (on floor): 1000 kg

 

• Dimensions at maximum load
  • Maximum outer dimension (LWH) 603 x 803 x 151 mm
  • Minimum outer dimensions (LWH) 597 x 797 x 147 mm
  • Tunnel opening 600-side, height 90-140 mm, center block max 150 mm and distance between outer blocks min 550 mm
  • Tunnel opening 800-side, height 90-140 mm, center block max 150 mm and distance between outer blocks min 580 mm

 

• Material
  • The material must withstand handling at +40 ºC to -35 ºC
  • The material should be HDPE or other materials of equivalent strength and life
  • The material shall have properties that ensure that the pallet is resistant to stretch and deformation within specified temperatures throughout the lifetime of the pallet
  • Fire classification must be specified
  • The total of heavy metals (Lead, Cadmium, Mercury and Chromium) in the colour pigment should not exceed 100 ppm
  • The pallet must be washable and 100% recyclable

 

• Characteristics
  • The pallet must withstand normal outdoor storage in the Nordic climate with exposure to sun, rain, snow, etc. the entire lifetime of the pallet
  • Friction on the upper side of the pallet, underneath and under the doors shall be such that the pallet works with a normal handling of products with different material types such as plastic box, corrugated board, wooden pallets, half, quarter pallets, etc
  • The friction must be constant during the lifetime of the pallet
  • The norm for friction is EUR wooden pallet

 

• Marking and traceability
  • The pallet must be marked with manufacturer, material, production time, max load and recycle symbol as well as who owns the pallet
  • The pallet shall be marked with a logo or other marking visible from 2 sides
  • The pallet must have at least 2 EPC Gen2 RFID chips. The RFID chips should be placed on both sides of the pallet and must be readable with fixed or mobile reader. The RFID chips should work in the entire pallet lifetime for normal use
  • The pallet’s RFID chips should be identified with EPC GRAI-96. Both RFID tags must have the same ID number. Minimum user memory is 512 bit

 

• Handling the pallet
  • The pallet must be handled manually from the short and long sides, as well as operate with forklifts and automatic warehouse management
  • The pallet shall be adapted for transport on runways (both runways with belts and rollers) and chain conveyors
  • The pallet will work in standard pallet turners, pallet stackers and pallet magazines

 

• Design
  • The pallet must be designed so that no pockets can collect dirt, water, etc. This is to minimize the risk of bacterial collection
  • The pallet must be designed for cleaning with pressure wash and / or immersed in water
  • The overall environmental impact of the pallet / material must be documented
  • The load deck / top deck shall be flat to avoid damage to products and to make manual handling easy
  • The colour should be neutral and practical

141 Specification for reusable 1/1 plastic pallet

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Specification for reusable 1/1 plastic pallet

STATUS: APPLICABLE STANDARD

• Weight
  • The pallet weight should be max 18 kilos

 

• Max load
  • Dynamic load, the pallet must handle a load of 1,000 kg placed in a standard storage rack or automatic warehouse. Deflection should not exceed 4 cm maximum

 

• Dimensions at maximum load (SIS standard SS 84 20 07)
  • Max outer dimensions (LBH) 1203 x 803 x 151 mm
  • Min outer dimensions (LBH) 1200 x 800 x 144 mm
  • Tunnel opening 800-side, min 90 mm, middle block max 150 mm and distance between outer blocks min 595 mm
  • Tunnel opening 1200-side, max 103 mm and min 100 mm high, middle block max 150 mm and distance between outer blocks min 900

 

• Material
  • The material must withstand handling at +40 ºC to -35 ºC
  • The material must withstand a load of 5,000 kilograms at -50ºC to -50ºC on flat surfaces
  • The material should have attributes so that the pallet can withstand stretch, deformation within the stated temperatures throughout the life span. This means that the pallet should return to its original form after loading
  • Fire classification must be specified
  • Colour pigments used in the pallet must be free from heavy metals. Free of heavy metals means that the sum of heavy metals (Lead, Cadmium, Mercury and Chromium) does not exceed 75 ppm
  • The pallet must be 100% recyclable
  • The pallet must be antistatic

 

• Characteristics
  • Compression 5,000 kg, 5 pallets with 1,000 kilos stacked on each other
  • The pallet must withstand exposure to the Nordic climate for minimum life during normal storage outdoors, such as sun, rain, snow, etc.
  • Friction on the top of the pallet, underneath and under the tracks shall be such that the pallet works with normal handling of products with different material types such as plastic box, corrugated board, wooden pallets, half and quarter pallets, etc.
  • The friction must also withstand normal truck handling the pallet with half pallet and 1/1 pallet on top, and transport of pallet stacks of 16-17 plastic pallets
  • The friction must remain the lifetime of the pallet
  • The norm for friction is EUR wooden pallet
  • The underside skids should not be convex, and the pallet’s skids must be max 3mm concave
  • The pallet should have a good solution to minimize condensation on the top of the pallet
  • Ability to allow liquid to drain away from the top of the pallet

 

• Marking and traceability
  • The pallet must be labelled with manufacturer, material, production time, max load and recovery symbol as well as who owns the pallet
  • The pallet shall be further marked with a logo or other marking so that the marking is visible from 2 sides
  • The pallet must have 2 RFID chips agreed by the parties. The location should be such that they can be read with fixed or mobile readers from both sides and from above and below
  • The RFID chips should work in the pallet’s lifespan

 

• Handling the pallet
  • The pallet should be used for manual handling from short and long sides, forklift handling and automatic storage handling
  • The pallet must be adapted for storage in standard pallet racks with 2 transverse posts
  • The pallet shall be adapted for transport on runways (both runways with belts and rollers) and chain conveyors
  • The pallet will work in standard pallet turners, pallet stackers and pallet magazines

 

• Design
  • The pallet design should have the same dimension on the top deck and the skids
  • The top of the skids should be designed for long side handling by forklift
  • Blocks for forklift fork openings should be designed so that forklift can easily enter the openings to prevent damage to the pallet
  • The pallet must have built-in handles for manual handling from the long side and should have a good design
  • The pallet must be designed so that no pockets can collect dirt, water, etc. to minimize the risk of bacterial collection
  • The pallet must be designed for cleaning with pressure wash and immersed in water
  • The pallet will be tested by external institutions such as Mattilsynet (Norwegian Food Safety Authority) or Veritas for the total environmental impact of the pallet material
  • The load deck / top deck must be flat to prevent damage to products as well as to make manual handling easy
  • The pallet must be light grey / grey or another neutral colour

140 Requirements for approved EUR-pallets

Download document here

Requirements for approved EUR-pallets

Facts

• Materials
  • 11 tables in high quality wood
  • 9 wood fibre or solid wood blocks
  • 78 nails
• Length 1200 mm (tolerance limit +8 / -5 mm)
• Width 800 mm (tolerance limit +8 / -5 x mm)
• Height 144 mm (tolerance limit +10 / -0 x mm)
• Tunnel height (light opening between top and bottom board) 100mm (tolerance +4/0 mm)
• Weight approx. 25 kg
• Workload 1500 kg with constant load on the entire pallet
• The top boards shall have a thickness of 22 to 25 mm
• The bottom boards shall have a thickness of 22 to 24 mm and must be slanted

• EUR-pallets shall only be manufactured, repaired and marked by approved companies
• EUR-pallets shall be manufactured in accordance with requirements of UIC Code 435-2
• Repair should be done in accordance with requirements of UIC Code 435-4

Nail pattern

Marking:

Left block                               Centre block                  Right block (2 options)

The EPAL brand may be replaced by the mark of European railway companies.

Unapproved pallets:

If there are one or more defects on the pallet, as shown below, the pallet is not approved.

The pallet must be repaired according to UIC code 435-4.

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An upper or lower board is damaged so that more than one nail or screw is visible

---

A board is missing

---

A block is missing or broken so that more than one nail is visible
A block cannot be twisted more than 10mm protruding.

---

A board is broken across or diagonally

---

More than two outer boards are damaged, and more than one nail or screw is visible on each board

---

Other requirements (Bad general condition):

• Load capacity can no longer be guaranteed (worm-eaten or rotten)
• Polluted so that products can be damaged
• Large chips from several of the bricks
• Evidently, unapproved materials used for repair, such as boards or blocks of inferior quality

 

ISPM No. 15
ISPM No. 15 is an international standard for treating and marking of wood packaging used in international trade. The standard specifies requirements for heat treatment or gasification of the wood or the wood packaging itself with methyl bromide to kill wood pestilators and that this is documented by the marking of the wooden packaging
The standard also sets requirements for barking of the wood.

Wooden packaging that crosses the EU’s outer borders should be marked with this symbol. Wood packaging produced and used in Norway is exempt treatment and marking.

More information on Mattilsynet’s website:
http://www.mattilsynet.no/planter_og_dyrking/tommer_trelast_og_treemballasje/treemballasje/internasjonal_standard_for_treemballasje__ispm_nr_15.8473

IPPC symbol, country code, registration number, HT (for heat treated), license number-year-month

ISPM 15 treated pallets shall be marked on the center blocks on the long sides
ISPM 15 markings can also be marked on the center blocks on the short sides

154 Service Level – Purpose, types of target measures and assumptions

Service Level – Purpose, types of target measures and assumptions

Intentions for measurement of service level

Measurement of service levels is a topic that most players are concerned with and are an important element in the relationships between supplier and customer.

The parties are free to agree whether to measure the degree of service.
If the parties agree to establish an agreement, STAND recommends that STAND’s definitions be used.

A challenge in relation to the exchange and evaluation of service level data has been that the trading partners often use different definitions and conditions for measurement and follow-up.

The recommendation contains suggestions for target measures and common definitions for measuring service levels. The purpose is to establish a common platform as a basis for measurement, communication and mutual evaluation of performance.

Joint exchanges of measurement results, based on the proposed definitions, could contribute to improved service levels and contribute to increased understanding of the parties’ views on customer and delivery services.

Target measures are based on DLFs (Dagligvaruleverantörers Förbund) and DULOGs (Dagligvaruhandelns Utvecklings- och Logistikgrupp ) common definitions, established in Sweden in 1998.
With this as a base as well as experience from companies with international relations, the prioritized definitions build upon the need for common understanding, measurement and evaluation of cross-border service.

With continuous follow-up, development and trends can be monitored over time. This will probably be more interesting than single results. Greater trend deviations are when warning signals and improvement programs should be implemented to reduce the likelihood that a similar situation will arise in the future.

Target measures

The recommendation describes 6 different target measures, of which STAND recommends that 3 of these are prioritized, as these can be quickly implemented in today’s systems.
Other target measures are composed of different combinations of priority targets.

Selection of target measures is done by the parties themselves and described in bilateral agreements.

The industry has an increasing focus on improving the service level to consumers, ie reducing out-of-stock in the stores. This is currently being worked on, including developing agreed definitions of how this should be measured and followed up. The following two KPIs can be used:

1. Lost sales:

When stock is zero at the end of the day, this will be set off against lost sales in the store.

Example: You have sold 40 during the day, and at the end of the day, the stock is zero. If this item had a sales forecast of 100 that day, the shelf service level of this item would be 40%.

When you aggregate this to store level, we will get a figure of how many customers were actually affected (based on the forecast) by the empty shelf.

2. Empty shelf

Number of article lines / products with stock = 0

Empty Shelf = ———————————————- ———————-

Number of article lines / products in the assortment in total

 Assortment is defined as what purchasing / category management has decided.

Deviations between what the individual store has in their space program, and the defined assortment for the store may have to be measured with a separate key figure; assortment loyalty.

For the reports, inventory = 0 means that inventory is 0 or less than zero in the store’s systems.

Other priority target measures:

• Correct quantity
• Correct time
• Correct administration

Combined target measures:

• Delivery of Order – Availability
• Complete orders at the right time
• The perfect order

The target measures can be used by both the customer and the supplier for follow-up of each other’s performance.

Prerequisites for target measures and definitions

Measure
In the measurements, the unit of measurement is described as “sales unit».
It is recommended that Stock Keeping Unit (SKU) is used as a sales unit. Stock Keeping Unit (SKU) is established in most systems and is the base for transactions; ex. ordering, delivery, billing etc. to the store.

Consumer Units (CU) as a unit of measurement, however, should be the vision and goal of the future, as the Consumer Unit (CU) is the unit of measurement that is uniform and shared throughout the value chain.

Agreement on measurement of service level
Which target measures to use and what definitions should apply should be anchored in a bilateral agreement.
The agreement can regulate conditions such as:

• Accrual
• Lead times
• Assortment
• Time frame
• How the exchange of measurement results should take place
• Where and when the measurement should take place for the measurement points associated with the priority target measure “Correct time»
• Duration of measurements. In choosing definitions, the parties must agree on the degree of service to be calculated over time or in relation to a contracted number of orders

pdfen

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190 What areas the standard for assortments changes apply to

What areas the standard for assortments changes apply to

Assortment changes including phase-in and phase-out of products, both new products and codes for changes to assortment/ changes in listings.

Supplies of Promotional Units and campaigns are not included.

Seasonal product defines as “Product sold for a limited period of time related to a season defined between the contracting parties”.

Seasonal products are launched according to the same template as regular news, with the following exceptions:

• Seasonal products with launch in the L1-L2 period are presented at the introductory sale of L1 news the previous year
• Seasonal products with launch in the L2-L3 period are presented at the introductory sale of L2 news
• Seasonal Products with launch in the L3-L1 period are presented at the introductory sale of L3 news
• Launch time is agreed bilaterally between supplier and customer.

An overview of seasonal time frames and respective deadlines is clearly described in agreements between the parties.

Bilateral agreements such as pre-launch and / or campaigns which does not affect deliveries to other parties can be included. Pre launch defines as “Bilateral agreement between supplier and customer to launch a product ahead of the regular launch time frame, or season”.

108 Assortment

STAND Assortment describes recommended activities, processes and deadlines at assortment changes in the different profiles in the various retail chains.

In general,  new products should be launched in L1 and L3. Regarding relaunches, minor changes and selected big news, products can also be launched in L2 by agreement with customer

It is a united request from both grocery suppliers, distributors and retail chains that the actors jointly contribute to the most effective processes in implementing assortment changes.

The purpose of the standard is to help maintain the flow of products, avoid empty stock in the value chain and reduce costs, return and obsolescence.

This can be achieved by:

• Collaboration and openness in the implementation of assortment changes
• Clarity regarding responsibilities and deadlines
• Precision in forecasts
• Clear rules for deviation management

The standard includes the following sub processes:

• Master data registration and product presentation
• Listing, all information attributes, forecast and delivery
• Ordering and delivery
• Product images and control measurements
• Routine for delays
• Evaluation

The deadlines are scarce, and in order to achieve successful assortment range changes, it is very important that the recommended standard timeline and deadlines are followed.

A prerequisite for success is the following guideline for the work:
Get it right the first time – on time

Watch an animation about the main aspects of Assortment here

Changelog

changeling

125 Measurement of service level

Good service level in the entire value chain is today a prerequisite for rational and competitive product flow, which in turn assumes that the performance can be measured and followed up.
Measurement and evaluation of service levels are crucial to prioritize and implement measures aimed at continuous improvements.

The parties are free to agree whether to measure the degree of service.
If the parties agree to establish an agreement, STAND recommends that STAND’s definitions be used.

Areas affected by, and subject to guidelines from STAND are:

• Intentions for measurement of service level
• Target measures and the conditions that apply to these
• Definitions of different types of target measures, with examples
  • Priority target measures
  • Combined target measures

122 Goods reception

This sub process describes the requirements, recommendations and guidelines STAND applies to receiving a delivery.
It does not describe internal procedures, but focuses on controls that shall and can be done upon receipt of the delivery. The check includes both Distributions Units (DU) and the individual Stock Keeping Unit (SKU).

In addition, the sub process describes some of the traceability and main points of any recall or withdrawal, as products receipt may have an active role in any eventual events.

Finally, measurements of service levels are described and how this can be used as an effective tool for establishing a common platform as a basis for measurement, communication and mutual evaluation of performance.

The areas described are:

• Transfer of responsibility for a product at Ex Works delivery terms
• In general, what controls should be performed on products receipt at Ex Works delivery terms
• Valid pallets and requirements for these
• Assessments related to shelf life
  • Assessment of total shelf life on a product with an allocation table
  • Execute customer order related to product shelf life
  • The establishment of bilateral agreements for the assessment of shelf life
• Complaints according to Ex Works delivery terms
• Guidelines for return of products
• Labelling requirements
  • Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)
  • Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label
  • Guidelines for labelling of Stock Keeping Units (SKU)
  • Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label
  • Labelling of transport information
  • Guidelines for labels on Distribution Units (DU)
  • Bar code requirements for labelling with GS1-128 on Distribution Unit (DU)
• Packaging / palletization
  • Requirements for the design of Stock Keeping Units (SKU) and packaging, with the modular system, case fill rate and top load labelling system, as well as special requirements for products and pallets in order for this to work in the distributor’s automated warehouse
  • Requirements for the design of the Distribution Unit (DU) and palletization
• Traceability of delivery
  • Guidelines for traceability, recall and withdrawal
  • Requirements for traceability of products and the product areas covered by this
  • Requirements for traceability information and labelling
  • Alternative ways to track and trace a product in the value chain
  • Implementation of actions when an event occurs
• Measurement of service levels, with definitions on target measures and examples of how these are calculated

121 Pick-up from supplier, transport to distributor / retailer

This sub process describes the requirements, recommendations and guidelines STAND has on how physical delivery is to take place, with the emphasis on the controls to be carried out when taking responsibility for the delivery.

The areas described are:

• Transfer of responsibility for a product at Ex Works delivery terms
• Checks to be performed by the carrier, and possible complaints related to this
• Labelling of transport information and guidelines for labels on Distribution Units (DU)
• Requirements for pallet / palletization on Distribution Units (DU)
  • Valid pallets and requirements for these
  • Requirements for the design of the Distribution Unit (DU) and palletization
  • Placement of Stock Keeping Unit (SKU) on pallet
  • The top load labelling system

120 Create documentation, send and receive Despatch Advice

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant for the preparation and transmission of documentation for a given delivery.

Essentially, this is related to the Despatch Advice and how it is used for Standard pallets, Mixed pallets, Promotional Units and Customer packed pallets, for these forms of distribution:

• Distributor deliveries
• Deliveries direct to retailer
• Crossdock deliveries

 

The areas described are:

• General information about requirements for delivery documentation
• Use of EDI in the retail trade and how EDI can be implemented
• Requirements for design and content in Despatch Advice (Message description)
• EDI exchange agreement and how this should be used, to document interaction related to the exchange of the Despatch Advice

119 Picking, packing and labelling of the delivery

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant for effectuate and prepare delivery to customer.
This includes picking of products, packing and labelling of delivery, ready for pick-up / shipment.

The areas described are:

• Assessments related to shelf life
  • Assessment of total Shelf life on a product with an allocation table
  • Execute customer order related to product shelf life
  • The establishment of bilateral agreements for the assessment of shelf life
• Packaging / palletizing
  • Requirements for the design of Stock Keeping Units (SKU) and packaging, with the modular system, case fill rate and top load labelling system, as well as special requirements for products and pallets in order for this to work in the distributor’s automated warehouse
  • Requirements for the design of the Distribution Unit (DU) and palletization
  • Placement of Stock Keeping Unit (SKU) on pallet
  • Valid pallets and requirements for these
• Labelling requirements
  • Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)
  • Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label
  • Guidelines for labelling of Stock Keeping Units (SKU)
  • Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label
  • Labelling of transport information
  • Guidelines for labels on Distribution Units (DU)
  • Bar code requirements for labelling with GS1-128 on Distribution Unit (DU)
• Traceability of delivery
  • Requirements for traceability of products and the product areas covered by this
  • Requirements for traceability information and labelling
  • Alternative ways to track and trace a product in the value chain
• Transfer of responsibility for a product at Ex Works delivery terms

117 Confirm order

This sub process consists of the following activities:

• Manage orders and send order confirmation
• Receive and process order confirmation

Areas affected by, and subject to guidelines from STAND are:

• How EDI is used in the retail trade in general and in the order confirmation process in particular
• Requirements for EDI messages
• EDI exchange agreement
• Generic description of order confirmation process
• Assessments related to delivery capability and temporarily sold out
• Bilateral agreements on the assessment of shelf life on products covered by this

116 Order

This sub process consists of the following activities:

• Send order
• Receive orders and return order receipt
• Receive order receipt

Areas affected by, and subject to guidelines from STAND are:

• How EDI is used in the retail trade in general and in the ordering process in particular
• Requirements for EDI messages
• EDI exchange agreement
• Generic description of the ordering process
• Bilateral agreements on the assessment of shelf life on products covered by this

114 Evaluation

After all launches, an evaluation will be made. This is carried out in conjunction with the previous product news launches. Below is further information about:

• Evaluation of new products
• Order routine and data exchange for products with short shelf life

112 Product images and control measurement

There are defined deadlines for submission of products to Tradesolution for photography and control measurement. This sub process contains the following points:

• Product images in Tradesolution’s MediaStore
• Submission of products for control measurement at EPD Checkpoint

111 Order and delivery

The process is generic and describes the following points:

• Order from distributor and delivery to retailer
• Communication and data exchange including service level
• Order routine and data exchange for products with short shelf life
• Forecast and deadlines

107 Logging traceability information

This sub process describes the requirements, recommendations and guidelines that STAND has for raw materials, input factors, packaging and finished products traded in the retail trade.

The areas described are:

• What is traceability
• Which product areas are covered by traceability requirements
• Which traceability requirements apply
• Which traceability information should be registered
• Traceability options

106 Palletization and storage

This sub process describes the requirements, recommendations and guidelines STAND has on how pallets are to be built and labelled for optimal transport and storage through the value chain.

The areas described are:

• Valid pallet types and the requirements made for these
• Placement of Stock Keeping Unit (SKU) on pallet, and stacking pattern
• Use of intermediate pallet sheets
• Requirements for plastic wrap for securing pallet through the value chain
• Product label on Distribution Unit (DU)
  • Content, and which informations that should be in the bar code on the label
  • Placement
  • Bar code requirements for labelling with GS1-128
• Traceability options

104 Plan and prepare for a production

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant in planning and preparation for a production of a product to be sold in the retail trade.

In addition to the finished product, raw materials and other input factors included in the finished product are also included, as well as packaging, load carriers / pallets used for transportation and storage of the finished product.

The areas described are:

• Shelf life requirements and possible use of dynamic shelf life
• Requirements for pallets planned for palletization of manufactured products
• Requirements for the packaging as planned to be used on manufactured products
• Traceability requirements for raw materials and input factors planned to be used in production

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Success stories

Contact

For general questions, contact:
support@stand.no

For supplier specific questions, contact:
Thomas Weihe
Director Value Chain Affairs
Dagligvareleverandørenes forening
thomas.weihe@dlf.no

For retailer specific questions, contact:
Jens Olav Flekke
CEO
Dagligvarehandelens Miljøforum
jof@dmf.no

Order

The process is a generic description of some elements of an ordering process.
It focuses on the interaction between supplier and distributor, or between supplier and retailer.
It does not describe internal activities of the individual player.

Order includes the following sub processes:

• Order
• Confirm order

Areas affected by, and subject to guidelines from STAND are:

• Order and order confirmation process using EDI for deliveries from supplier to distributor or retailer, and Crossdocking deliveries
• Which EDI messages to use for given forms of distribution, as well as deadlines for when to be sent
• EDI exchange agreement
• Content in the EDI messages and how to implement these for the following messages
  • Order
  • Order receipt
  • Order confirmation
• Use of bilateral agreements for distribution of shelf life, for products covered by this
• Evaluation of the delivery ability of ordered products

Settlement

The process deals with settlement for deliveries.  It covers all three forms of distribution:

• Distributor deliveries
• Deliveries direct to retailer
• Deliveries via Crossdock

Settlement is based on the fact that all documentation related to the delivery is to be exchanged in electronic form (EDI).

In addition, the process describes various service level measurements that can be made to document the parties’ performance, from ordering, through delivery, until settlement has taken place.

The measurements are typically associated with:

• Correct quantity
• Correct time
• Correct documentation

Settlement includes the following sub processes:

• Invoicing
• Measurement of service level

Delivery

Delivery includes the following sub processes:

• Picking, packing and labelling of delivery
• Create documentation, send and receive Despatch Advice
• Pick-up from supplier, transport to distributor / retailer
• Products receipt

Tracking

Tracking includes the following sub processes:

• Establish routines for traceability, recall and withdrawal
• Recall / withdrawal of a product

Areas affected by, and subject to guidelines for STAND are:

• Background to the guidelines, what is the goal, and who is the target audience
• Laws and regulations underlying the guidelines and how they are legally rooted
• What requirements exist for traceability, traceability information and labelling, and the product areas for which the guidelines apply
• How can internal routines for recall / withdrawal be established
• What actions can be taken if an unwanted event or crisis should occur and how a product can be traced in the value chain

The guidelines are to be understood as recommendations that actors must bilaterally agree on whether to be followed or not.

Assortment

STAND Assortment describes recommended activities, processes and deadlines at assortment changes in the different profiles in the various retail chains.

In general,  new products should be launched in L1 and L3. Regarding relaunches, minor changes and selected big news, products can also be launched in L2 by agreement with customer

It is a united request from both grocery suppliers, distributors and retail chains that the actors jointly contribute to the most effective processes in implementing assortment changes.

The purpose of the standard is to help maintain the flow of products, avoid empty stock in the value chain and reduce costs, return and obsolescence.

This can be achieved by:

• Collaboration and openness in the implementation of assortment changes
• Clarity regarding responsibilities and deadlines
• Precision in forecasts
• Clear rules for deviation management

The standard includes the following sub processes:

• Master data registration and product presentation
• Listing, all information attributes, forecast and delivery
• Ordering and delivery
• Product images and control measurements
• Routine for delays
• Evaluation

The deadlines are scarce, and in order to achieve successful assortment range changes, it is very important that the recommended standard timeline and deadlines are followed.

A prerequisite for success is the following guideline for the work:
Get it right the first time – on time

Watch an animation about the main aspects of Assortment here

Production

The process is a generic description of a production process and may vary in different manufacturing companies.
Order of activities described may also differ from how this is done in your business.

Production includes the following sub processes:

• Schedule, prepare and facilitate production
• Conduct production
• Palletization and storage
• Logging traceability information

Areas affected by and subject to guidelines from STAND are:

• Assessment of the shelf life of the raw materials included in the production and determination of total shelf life of finished products, type of shelf life date and assessment of the possibility of dynamic shelf life
• Valid pallets and requirements for these
• Packaging requirements, all packaging levels
• Traceability requirements for raw materials, input factors and finished products
• Requirements for product labelling of Consumer Units (CU),  Stock Keeping Unit (SKU) and Distribution Unit (DU), content and placement of label
• Requirements for the construction of the Distribution Unit (DU)
• Use of intermediate pallet sheets
• Use of plastic wrap for securing the pallet through the value chain

Product development

This process varies from business to business, and from product to product.

STAND has no guidance on how to do this but has developed guidelines within the following main areas:

• Optimization and requirements for design of Consumer Unit (CU), Stock Keeping Unit (SKU) and Distribution Unit (DU) with accompanying packaging materials
• Valid pallets and requirements for these
• Labelling of Consumer Units (CU), Stock Keeping Units (SKU) and Distribution Units (DU)
• Shelf life and assessments related to this
• Guidelines for traceability, recall and withdrawal, with requirements for traceability, traceability information, and labelling

Downloads

DLF

DLF

The Grocery Suppliers of Norway (DLF Norway) is a non-profit trade association that provides a joint forum for manufacturers and suppliers of branded products.

DLF Norway has over 100 member companies that together cover about 95 % of the turnover of branded goods in the grocery and food service sectors in the Norwegian market.

Our main fields of activity:

• Industry-trade relations
• Competition and market issues
• Logistics and supply chain efficiency
• Standardisation and value chain cooperation
• CSR and Public Affairs

Our mission statement includes five main elements:

• Enhancement and understanding of good business practice
• Professional cooperation for efficient infrastructure
• Good regulations for fair and effective competition
• Balance of power between retailers and suppliers
• Favourable climate for growth through innovation and category management.

The Grocery Manufacturers of Norway is a member of the European Brands Association AIM (Association d’Industries de Marque), aim.be.

 

For more information: www.dlf.no

DMF

DMF

DMF coordinates overall challenges in the food value chain, linked to sustainability and reduced environmental impact. DMF works with a main focus on logistics, reduced emissions from transport, packaging, carriers, value chain optimization, food safety, return and recycling of packaging. DMF works project-oriented in collaboration with groups where the owners participate with specialists in the individual subject. Ownership and coordination of companies where the grocery chains have joint ownership, such as Grønt Punkt Norge and Norsk Lastebærer Pool (NLP), is a part of DMF’s tasks.

DMF is owned by NorgesGruppen ASA, COOP Norge SA and REMA 1000 Norge AS.

For more information: www.dmf.no

About STAND

ABOUT STAND

The Standardization Committee for the Norwegian Retail Industry (STAND) represents the retail industry through the trade organizations Norwegian Grocery Sector’s Environmental Forum (DMF) and the industry through the Grocery Suppliers of Norway (DLF).

STAND was established by the industry parties and will prepare and monitor the necessary solutions and measures that contribute to the efficiency, rationalization and optimization of the goods flow, and to ensure that these are implemented. This applies to all conditions that affect the flow of goods (data, databases, information, products / goods, GS1’s standards, packaging, pallets, transport, tracking, etc.).

STAND is established with the purpose of making the value chain to the consumer more efficient and cost effective, and is legally binding only when referring to these guidelines in commercial agreements between supplier and customer.

The guidelines have been prepared for use in Norwegian retail. For use in other channels (convenience, e-commerce, catering), this must be explicitly agreed between the parties.

Processes

Process oriented STAND standards

The STAND standards are a set of process-oriented standards which follow the value chain in the grocery industry. This is a big change from when the standards were more task-oriented. All information in the old standards is included in the new ones, but is now structured according to the processes.

All relevant processes at, and between, the brand supplier, the wholesaler and the retailer are described in 7 main processes, with a total of 21 subprocesses.

You will find the standards below here and on the landing page. To find what you are looking for, you can click on the relevant subprocess here, you can go to the relevant main process on the landing page and scroll down the left menu or you can use the search function.

Under Downloads, you will find PDF versions of the main processes, sub-processes and some other useful documents also. Once you are in one of the STAND standards, you can create a PDF of that exact page.

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All changes to the standards are listed in attached change log pr 16. December 2019.

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Guidelines and routines for tracking, recall and withdrawal

Guidelines and routines for tracking, recall and withdrawal

In its framework, STAND has defined guidelines, recommendations and best practices for how products should be marketed in the distribution chain, and how information on this should be exchanged between the parties.

Central to this is the consideration of the consumer and his expectation for safe food.

The guidelines for tracking, recall and withdrawal do not define food quality requirements, but describe what procedures and processes the industry has established to mitigate any unwanted effects should an incident or crisis occur in a product.

Best practices

The guidelines describe best practices in this area.
By following STAND’s framework, the guidelines will be achievable for all parties involved.

Some important prerequisites for best practice.

• Routines and processes must be simple, predictable and intuitive
• Products and deliveries / load carriers must be labeled in a unified, standardized and correct way so that they can be traced through the value chain.
• Product information must be registered in the Tradesolution EPD
• Detailed tracking information must be exchanged digitally between the parties and follow the products through the value chain.
• Action must be taken quickly when an incident or crisis occurs

By ensuring that a total industry complies with STAND’s framework, consumers’ demands and expectations for safe food are fully met.

Objective of the guidelines

The guidelines are aimed at “Contribute to meet consumers’ expectations for safe products”.

Target Audience:

• Anyone who may or will be involved in any recall or withdrawal
• Everyone involved in the production or labeling of products and packaging covered by the guidelines

Products / areas to which the guidelines apply:

• Recommended for food and non-food products, except pharmaceuticals
• Other inputs, plants, animals or foodstuffs
• Materials and articles that are intended to come into contact with, or may affect, inputs or foodstuffs.

Medicines are exempt from the guidelines. Here we refer to separate regulations, not described here.

Certain types of food may be subject to additional regulatory requirements beyond what is described here. An example is the EU’s new tobacco directive (EU 2014/40) which make the requirements for traceability of tobacco products more stringent, but is not described here.

Prepare a Risk Analysis

At the heart of the legislation is the duty of each company to carry out a risk analysis of the health risks the products represent and how the company will relate to this in terms of traceability.

The purpose of the analysis is to reduce / prevent risk through

• Withdrawal of products from the market, or
• Efficient notification or recall of products from consumer

This assumes that the parties are aware of the risks the products may pose and have a preparedness that ensures that they react quickly, correctly and effectively in unwanted incidents. A Risk Analysis should therefore be performed on new products based on an intended relevant incident, so that it can be implemented as quickly as possible should a real incident occur for the product.

The risk analysis consists of three elements that both the government and industry should work on in an equal way:

• Risk Assessment
• Risk Management
• Risk Communication

See more about risk analysis here Design and content of a Risk Analysis.

Product tracking requirements

The legislation requires that each company must have systems to document which products are purchased from each supplier and which customer has purchased the company’s finished products.

This also includes raw materials and other input that are covered by the legislation.

There is no requirement in the legislation for which type of systems to be used for this.

Businesses can practice more comprehensive tracking systems than the minimum regulatory requirements require, but this is either based on self-imposed requirements or agreements with, and orders from the contracting parties.

Tracking means being able to follow the physical flow of goods. This is often referred to as chain traceability, and assumes that all parties meet the requirements and follow the guidelines for tracking.

Tracking takes into account the legal requirements for all parties to be able to trace their products one step forward and one step back in the value chain.

Tracking one step forward:

This means to the address the products are delivered to.

An invoice system containing information about item number / item name, customer number / customer name and invoice date is sufficient to be able to trace one step forward in the value chain.

If the company is using batch/lot numbers for their products, this should be included in the invoice, despatch advice and the like, or linked directly to the company’s own systems.

Tracking one step backward:

This means the address from which the products are delivered.

The company must keep a log of received products describing which products were purchased from whom and in which quantitiy, and date.

If the addresses for where products are delivered from or delivered to are not in accordance with the legal ownership of the products and the invoice process, this should be agreed separately between the parties.

Actions to be made in case of an incident or crisis

Alarm / Notification

An incident can occur in all steps of the value chain, at the consumer, retailer, distributor or at the supplier itself. It is important that the supplier is notified as soon as possible.

Notification of an incident shall be given to one alert point at each operator. The alert point should be agreed in advance and always be staffed / available.

The industry has decided that for products registered in the Tradesolution EPD base, Tradesolution ReCall portal should be used for blocking, recall or withdrawal. Access is available at epd@tradesolution.no

For products not registered in the Tradesolution EPD base, a Notification schema for recall, withdrawal or blocking of a product may be used provided that this has been agreed between the supplier and the distributor/wholesaler. Notification schema can be downloaded from Downloads.

Required information to follow an alarm / alert

To identify the scope of the alarm / alert, the product’s GTIN / EPD, best before date, batch / Lot number and SSCC on affected pallets must always be stated. This applies regardless of whether the product is registered in the Tradesolution EPD base or not.

By using the portal, the supplier gets / is secured

• Easier, faster and more efficient registration, as well as quality assurance of the necessary product information
• Ensure that necessary information is distributed quickly and efficiently to all relevant recipients
• Simplifying the dialogue between the parties
• All dialogue and information exchange is done in the portal and can be logged and stored.

Here you can see an animation that shows how a recall can be done in practice, using the ReCall portal.

The ReCall portal can also be used in situations where you want to withdraw products with quality defects.

Distributors have built their own systems and routines for alerting crisis situations and blocking the products at their distribution warehouses and retailers. This is not part of the ReCall portal.

The following routine applies when registering an incident or crisis

1. Register a new case
2. Determine severity and health hazards
3. Notify affected parties / recipients
4. Register distribution and what to do with the product
5. Register tracking information for affected batches / lots
6. Describe further actions to be taken, with press releases and other additional information
7. Closing the case

The practical implementation of the routine is described here Routine when registering an incident or crisis, in the Tradesolution ReCall portal.

Conclusion

Through the guidelines, the industry contributes to satisfying consumers’ demands and expectations for safe products, provided that an overall industry complies with the guidelines.

Should an incident or crisis occur, there are routines and tools that, in a simple, fast and secure way, limit incidental damage.

An accurate and limited recall or withdrawal will be possible.

This reduces costs for all parties in the value chain and minimizes potential reputational loss.

Recall / withdraw a product

Recall / withdraw a product

Areas affected by, and subject to guidelines from STAND are:

• Implementation of actions when an incident occurs, using the notification schema for recall, withdrawal or blocking of a product
• Alternative ways to track and trace an item in the value chain

Recommended traceability methods in the value chain

Traceability using pallet labelling and EDI Despatch Advice
The recommended traceability method involves labelling load carriers with GS1 labelling system combined with EDI Despatch Advice (Advance Shipping Notice(ASN)).

For products distributed through the retailer’s distribution warehouses, the industry’s unified guidelines for the identification and Distribution Units (DU) are based on GS1 standards.

To conduct traceability, each actor in the value chain must have a system that can store and process Distribution Units (DU) or logistic units with unique identifiers.

The importance of SSCC as the primary tracking key for deliveries
SSCC is the most important tracking key in the retail value chain. For each pallet identified and marked with SSCC, all products that are on the pallet are linked with full tracking information (GTIN, batch / lot and shelf life). This information is sent to the buyer in an EDI Despatch Advice.

A prerequisite for the tracking information to remain intact is that an SSCC is not reused.
Reusing a SSCC can result in a pallet being stopped at the Goods Reception by the recipient’s IT system, anticipating that the pallet has been received earlier. The recipient must then issue a new SSCC for the pallet, mark it and link the contents of the pallet to the new SSCC.

Since the pallet now has a new SSCC, it can no longer be used as a mutual tracking key in the retail value chain. In case of an incident with a possible recall / withdrawal of products, this could be critical.

STAND has therefore decided the following:
“For trading in Norway, it is a requirement that SSCC shall not be reused until after a minimum of 6 years. This is rooted in the Norwegian Food Safety Law, requiering a minimum traceability of 5 years. This also includes products that are outside the scope of the Norwegian Food Safety Law”.

Traceability at and from sender
Each packaging level (Consumer Units (CU), Stock Keeping Units (SKU), Distribution Units (DU)) has an assigned GTIN and must include a bar code on the label.

On Consumer Unit (CU), GTIN should preferably be labelled with the EAN-13 bar code symbol.

Stock Keeping Unit (SKU) on the Distribution Unit (DU) must be labelled with an approved bar code symbology and linked to the Distribution Unit’s (DU) unique identification.

Each pallet must be labelled with one GS1-128 bar code pallet label. The label contains a unique identifier (SSCC) which enables a link between the Stock Keeping Unit (SKU) on the pallet and the batch / lot number stored in the sender’s IT systems.

If the pallet is split or changed (for example, to one Mixed pallet or Promotional Unit, it shall be identified with a new GS1-128 label and SSCC. Mixed pallets are not labelled with product information.

The product information is attached to the pallet’s SSCC by scanning each Stock Keeping Unit (SKU) when the Distribution Unit (DU) is being assembled.

Once the sender has created the connection between the Stock Keeping Unit (SKU and the Distribution Unit (DU) and secured this, the information can be used to make an EDI Despatch Advice.

The EDI Despatch Advice is then sent from the sender to the recipient of the products. The parties are identified with GLN. This provides a clear and secure identification of the parties and is central to traceability. The Despatch Advice contains all relevant product information (GTIN, batch / lot and shelf life) about the shipment, and that it ties it to each Distribution Unit (DU) using SSCC.

For shipment, the supplier scans all outgoing Distribution Units (DU) and thus has a unified link between the individual product, its associated batches and which customer receives the product. This also enables effective control of the sending of correct products to customers.

Sender sends EDI Despatch Advice to recipient at agreed time.

Traceability at receiver
When the products arrive at the recipient, each pallet will be scanned.

All Stock Keeping Units (SKU) and Distribution Unit (DU) information is received in the EDI Despatch Advice. Using the EDI Despatch Advice, the tracking information is taken care of and significantly simplifies the products receipt.

The link to the product information occurs when the recipient scans the SSCC on each Distribution Unit (DU). Here, the recipient connects information about the products (GTIN, batch and shelf life information, against the sender (GLN).

For a Standard pallet all relevant information can be scanned from the Distribution Unit (DU) labels. This ensures that correct products are received at the same time as traceability information can be linked to the individual supplier. This simplifies and ensures the sharing of proper traceability information.

Mixed pallets must be split into the warehouse, and through IT support ensure that accurate and statutory traceability information is safeguarded and connected correctly.

Evaluation

After all launches, an evaluation will be made. This is carried out in conjunction with the previous product news launches. Below is further information about:

• Evaluation of new products
• Order routine and data exchange for products with short shelf life

Order routine and data exchange for products with short shelf life

All new products follow common routines for filling of shelves.
For products with shelf life less than 60 days, the wholesaler order(s) will meet the fulfilment requirements and expected supplement to the store the first sales days, rarely more than 6 days.

The wholesaler will give the supplier access to data showing the number of stores per retail chain that has sales on the current item and the number of Consumer Units (CU) sold (POS), accrued and accumulated.
Data is delivered in the first 8 weeks after launch.

The supplier is expected to have high readiness for implementing any measures to ensure continuous delivery capacity.

Order

This sub process consists of the following activities:

• Send order
• Receive orders and return order receipt
• Receive order receipt

Areas affected by, and subject to guidelines from STAND are:

• How EDI is used in the retail trade in general and in the ordering process in particular
• Requirements for EDI messages
• EDI exchange agreement
• Generic description of the ordering process
• Bilateral agreements on the assessment of shelf life on products covered by this

Order

Send order

An order is sent in the form of an EDI order, and specifies products / services ordered under the terms agreed between seller and buyer.

The order shall fulfil bilateral agreements specified in the EDI exchange agreement.

The order includes buyer and seller, product, quantity, desired delivery date and place of delivery.

The order must be sent in accordance with the agreed order stop time.

Possible corrections that can be made on an order after it has been sent:

• Cancellation of the order can be done in the following alternative ways:
  • It is agreed on the telephone that the supplier must send an EDI order confirmation, with 0 in the amount on all product lines
  • It is agreed on the telephone that the order is manually deleted in the system of both parties
• Additional Orders for delivery at the same time as the main order must be made within the agreed order stop time for the main delivery. This is done by placing an ordinary EDI order on the products and quantities to be ordered as well.
• Amendments on a dispatched order can be made in the following alternative ways:
  • It is agreed that an EDI order confirmation will be sent with 0 on the item lines to be changed, upon which a new EDI order will be sent on the item lines that should be changed
  • It is agreed on the phone that the original order is deleted, and that a new EDI order will be sent
  • It is agreed on the telephone that an EDI order confirmation will be sent with 0 on all product lines, and there will then be sent a new EDI order

Special relationships related to order
The order number should be unique to each order sent from a buyer.
The supplier must reject an order where the order number is received and processed earlier.

For certain products, there is a bilateral agreement on how to split shelf life between the parties. Look to The establishment of bilateral agreements for the assessment of shelf life.

For EXW delivery terms, the rules dictate one order should only include one delivery from one pick-up point to one place of delivery and one desired delivery date.

For delivery terms where the supplier is responsible for transportation, the same applies, except that the order may contain deliveries from multiple locations.

Receipt of orders and return of order receipt
The supplier, if agreed upon in the EDI Exchange Agreement, shall return an EDI order receipt immediately after the order is received.

Order receipt has the function of confirming to the customer that the supplier has received the order. Order receipt contains no information on whether the customer receives the ordered products.

Receive order receipt
Upon reception of order receipt, it provides the customer with an assurance that the order was received by the supplier.

How order receipt is further used by the customer in internal systems is not covered by the guideline.

Confirm order

This sub process consists of the following activities:

• Manage orders and send order confirmation
• Receive and process order confirmation

Areas affected by, and subject to guidelines from STAND are:

• How EDI is used in the retail trade in general and in the order confirmation process in particular
• Requirements for EDI messages
• EDI exchange agreement
• Generic description of order confirmation process
• Assessments related to delivery capability and temporarily sold out
• Bilateral agreements on the assessment of shelf life on products covered by this

Confirm order

Manage orders and send Order Confirmation

Upon receipt of an order, the supplier shall check that the order complies with the bilateral agreements specified in the EDI Exchange Agreement.

Deadline for sending an Order Confirmation

An Order Confirmation must be sent no later than 3 hours after the order stop time. If not possible to meet the 3-hour deadline, it can be agreed bilaterally what the deadline should be.

For deliveries with order and pick up the same day, bilateral deadlines apply.

Bilateral deadlines must be agreed in writing.

Check for delivery ability

The expected delivery must be confirmed in the Order Confirmation. This means that it must be checked for deliverability.

An Order Confirmation must be sent that confirms what the supplier with a high degree of probability expects will be delivered. The distributor is aware of that there may be a discrepancy between what is confirmed delivered and what is actually delivered. In the case of repeated deviations over time, the parties will enter into a dialogue about how the this can be corrected, in a constructive and flexible way.

It must not be confirmed more than originally ordered without agreement.

When checking for delivery ability, consideration shall be taken regarding any bilateral agreements that allow products to be delivered which, under normal conditions, do not meet the requirements for the distribution of total shelf life between the players.  See The establishment of bilateral agreements for the assessment of shelf life

Products that are not covered by a bilateral agreement must have a remaining shelf life that satisfies the requirements for distribution between the players as specified in Table for assessment of shelf life of a product.

Information to be sent for products that are temporarily sold out

If a product is temporarily sold out, it is a request from the distributors that the date for when the product is expected back for sale can be sent in the Order Confirmation. However, this must be agreed bilaterally.

If the supplier does not have systems that can provide this in the Order Confirmation, this information must be exchanged in other bilaterally agreed ways. By exchanging information about when a temporarily out-of-stock product is expected to be available for sale, this can be used actively in the order.

Reservation of quantity for order confirmation

When the order confirmation is sent, the supplier must reserve the quantity that is confirmed delivered to the current order.

Confirmed quantity versus what can be delivered at delivery time

If the order confirmation confirms a quantity that differs from what has been ordered, it is what is stated in the order confirmation that will be included in the delivery to the buyer.

This also applies if the supplier in the meantime will be able to deliver the ordered products.

Requirements for order confirmation

• The order confirmation must be sent by EDI
• One order confirmation shall be sent per order
• The order confirmation must be sent within the deadline
• The order confirmation shall provide a code that gives the customer a quick understanding of the status of the order. One of the following codes must be sent:
  • The order is accepted and delivered in full
  • The order is accepted, but can not be delivered in full
  • The order is accepted, but contains one or more product numbers that have expired
  • The order is accepted, but contains one or more product numbers that are unknown
  • The order is accepted and checked for product information, however inventory information / delivery ability is not verified
  • The order is accepted, but there is an error on a line with an undefined reason
  • The order is rejected (usually due to syntactic errors in the order itself)

For Crossdock, the following feedback applies in addition to the above:

• • The order is accepted, but the quantity on a line is reduced by agreement with the final customer

• A new order confirmation can not be sent to replace a previous order confirmation, even if the delivery situation changes

 

Receive and process order confirmation

An order confirmation is an end of the procurement process, and the customer should therefore not respond to the order confirmation even though this should have changed according to the order.

The order confirmation number from the supplier must be unique. Recipient shall reject an order confirmation with an order confirmation number received and processed earlier.

How the order confirmation is used by the customer in internal systems is not covered by the STAND guidelines.

 

Endringslogg

Picking, packing and labelling of the delivery

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant for effectuate and prepare delivery to customer.
This includes picking of products, packing and labelling of delivery, ready for pick-up / shipment.

The areas described are:

• Assessments related to shelf life
  • Assessment of total Shelf life on a product with an allocation table
  • Execute customer order related to product shelf life
  • The establishment of bilateral agreements for the assessment of shelf life
• Packaging / palletizing
  • Requirements for the design of Stock Keeping Units (SKU) and packaging, with the modular system, case fill rate and top load labelling system, as well as special requirements for products and pallets in order for this to work in the distributor’s automated warehouse
  • Requirements for the design of the Distribution Unit (DU) and palletization
  • Placement of Stock Keeping Unit (SKU) on pallet
  • Valid pallets and requirements for these
• Labelling requirements
  • Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)
  • Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label
  • Guidelines for labelling of Stock Keeping Units (SKU)
  • Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label
  • Labelling of transport information
  • Guidelines for labels on Distribution Units (DU)
  • Bar code requirements for labelling with GS1-128 on Distribution Unit (DU)
• Traceability of delivery
  • Requirements for traceability of products and the product areas covered by this
  • Requirements for traceability information and labelling
  • Alternative ways to track and trace a product in the value chain
• Transfer of responsibility for a product at Ex Works delivery terms

Dispatch of customer orders related to product shelf life

Transport time and delivery frequency should, if possible, be criteria that are taken into account in cases where there is different shelf life on products available at time of shipment.
«Fresher products» are delivered to distributors or customers with long distances of transport / low frequency of delivery.

Requirements for design of Stock Keeping Unit (SKU) and packaging

Stock Keeping Unit (SKU) is the unit the retailer buys.
Stock Keeping Unit (SKU) occurs in various forms, such as carton, reusable box / pallet box, intermediate carton and such.

The most important task of the Stock Keeping Unit (SKU) is to secure Consumer Units (CU) from the time of manufacturing until it is finished exposed in a shop shelf.

The number of Consumer Units (CU) in a Stock Keeping Unit (SKU) is determined by the manufacturer, preferably in dialogue with the distributor / retail chain.

The Stock Keeping Unit (SKU) must be adapted to the modular system, see Modular system

for picking and grouping of products can be done as efficient as possible.

Case fill rate shall be calculated. This is described in Case fill rate

Stock Keeping Unit (SKU) must be designed to withstand the strain required in the value chain.

Automatic warehouses require that Stock Keeping Units (SKU) must be packed in a way that it can be lifted, stacked, clamped and handled with different mechanized devices, see Automated warehouse at distributor – greater understanding of the depalletization process.

Design requirements and packaging

When designing a Stock Keeping Unit (SKU), it must be based on the modular system.
This means that the Stock Keeping Unit (SKU) should not be less than 100 x 150 mm and not more than 400 x 600 mm.

Example of best practices

Modular Stock Keeping Unit (SKU).

 

Example of an inappropriate Stock Keeping Unit (SKU)

Stock Keeping Unit (SKU) is not adapted to the modular system.

The size of the Stock Keeping Unit (SKU) must consider the size of the shelf space for the current product group.
The short side of the Stock Keeping Unit (SKU) should be front where appropriate.

There must be a simple and clear opening guide, preferably with illustration.

The packaging must be opened without using a knife.

When the Consumer Units (CU) is exposed in the Stock Keeping Unit (SKU), the least possible of the Stock Keeping Unit’s (SKU) packaging should be visible when exposed in the store shelf.

Stock Keeping Unit (SKU) must not weigh more than 15 kg.

Stock Keeping Unit (SKU) must be in recyclable cardboard or plastic.

Example of an inappropriate Stock Keeping Unit (SKU)

Lid / plastic film is missing, which may cause Consumer Unit (CU) to fall out during internal transport.

Plastic boxes – all variants – must be considered to work in automated warehouse handling.

Stock Keeping Unit (SKU) must be form stable.

Example of best practices
Stock Keeping Unit (SKU) is form stable.

Example of best practices
Form stable Stock Keeping Units (SKU) that embraces close to its content and is strong enough to not deform.
Resists load on inbound transport (2 pallets in height), as well as handling through the value chain.

Example of an inappropriate Stock Keeping Unit (SKU)
Not form stable. Do not resist strain on inbound transport (2 pallets in height), as well as handling through the value chain.

Stock Keeping Unit (SKU) that is only wrapped in plastic foil must have a tray / trough below.

Example of best practices
Stock Keeping Unit (SKU) on tray / trough with plastic wrap.

Stock Keeping Units (SKU) must have straight sides.

Example of best practices
Stock Keeping Units (SKU) with straight sides.

Glue quality and amount of glue on Stock Keeping Unit (SKU) must be such that glued surfaces do not loosen.

Example of best practices
Glue quality and amount of glue is such that glued surfaces do not loosen.

Constructed example of an inappropriate Stock Keeping Unit (SKU)
Too little glue / too few glue points are included that flap gaps with subsequent stops in automatic warehouse systems.

The Stock Keeping Unit (SKU) should be stackable and “ears” should only be used where it is necessary for stability.
Should “ears” be used, these should not exceed 5mm and should not be used in conjunction with intermediate pallet sheets.

Stock Keeping Unit (SKU) should not have loose lid.
The lid must be attached to the tray / trough in such a way that it does not loosen during handling. It is recommended to use glue points or a locking mechanism.

The Stock Keeping Unit (SKU) must have a center of gravity relative to the base that allows it to be handled on conveyor belts.
The height / width ratio should be below 1.7 to ensure that the products do not fall under internal transport in an automatic warehouse.

Example of best practices
The ratio height / width is below 1.7.

 

Example of an inappropriate Stock Keeping Unit (SKU)
The height / width ratio is over 1.7, which means that the Stock Keeping Unit (SKU) can fall during internal transport.

Stock Keeping Unit (SKU) exposure front should not be less than 30 mm, regardless of the chosen solution.
The information on the Consumer Unit (CU) must be visible.

Packaging capacity

During the design of the product and packaging it must be considered that the outer dimensions of the finished Stock Keeping Unit (SKU), tray and otherwise, under the load of the above-mentioned product packaging, due to bulging, is within the margin. In practice, this can be from 0.5 to 1.0 cm.

Optimal transport requires the use of load capacity of the transport systems (weight and height).

Generally, the packaging should be able to carry a similar pallet (2 identical pallets) without any breakage or clamping damage during transport and storage.

Exceptions from this must be specified and labelled on the (Distribution Unit (DU).

Method of calculation of carrying capacity is described in Top load labelling system.

The packaging shall be able to withstand shipping with other products for shipping to the store in a rational way.

In order to achieve the industry’s common goal of efficient flow of products, reduced negative environmental impact, promoted sales and reduced losses, it is important to focus on:

• Top load
• Stackability
• Module customization

Especially for reusable boxes / pallet boxes
Basically, Stock Keeping Units (SKU) is desired in cardboard, or in combination with plastic.

Reusable boxes are an alternative to Stock Keeping Units (SKU) in corrugated paper but must be agreed bilaterally.

Particularly for Intermediate cartons
The use of Intermediate cartons should be kept as low as possible and must be agreed bilaterally.

Intermediate cartons are accepted in cases where the Stock Keeping Unit (SKU) solution is not possible because the Stock Keeping Unit (SKU) does not meet the requirements for strength, stability or size and where the use of intermediate pallet sheet on pallet is not possible.

The intermediate carton must be labelled so that it clearly differs from the Stock Keeping Unit (SKU) and shall not weigh more than 15 kg.

Placement of Stock Keeping Unit (SKU) on pallet

It is a prerequisite for maintaining strength, that Stock Keeping Units (SKU) are placed within the edges of the pallet with a small margin.
Devices placed on or outside the edge can cause damage with subsequent reduced carrying capacity / risk of injury.

The pallet area should be utilized as best as possible with products. By following the Modular system optimal use of the pallet is ensured and reduces the risk of the load shifting during transport.

Overhang is not accepted.

Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)

The purpose of a standard for labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU) with subsequent electronic data interchange (EDI) is to:

• Achieve an efficient flow of products from manufacturer to consumer
• Ensure traceability through the value chain, which is important in case an event or crisis occurs which requires a recall or withdrawal of the product

The basis for this is the labelling of each Distribution Unit (DU) with a unique SSCC.

This code is the main key in the electronic Despatch Advice and is linked to information about which GTIN which the Distribution Unit (DU) consists of, the number of Stock Keeping Units (SKU) batch / lot number and shelf life information if applicable.

SSCC is the most important key for traceability of Distributions Units (DU), see Recommended way to track and trace a product in the value chain.

For that reason SSCC shall not be reused until after a minimum of 6 years.

Recommended way to track and trace a product in the value chain

Efficiency and traceability are achieved primarily through:

• Synchronization of product information between the various parts in the value chain.
  The purpose is for all players to obtain correct and coherent product information about the products. Between suppliers and retail chains in the Norwegian groceries sector the EPD database is used for the registration, quality assurance and distribution of product information.

• Electronic Data Interchange (EDI) between the actors.
  The purpose is to reduce manual operations and reduce lead time in the value chain. The most widely used EDI messages are order, order confirmation, Despatch Advice and invoice.

• Standardized labelling of outer packaging.
  The purpose is to contribute to faster and more efficient shipping, distribution and receipt of the products. A common labelling concept for the grocery industry is used here; GS1-128.

To ensure rational product and information flow in the distribution chain, STAND recommends a uniform labelling of Stock Keeping Units (SKU) and Distribution Units (DU).
This simplifies the labelling of the manufacturer / supplier, shipment by shipper / freight forwarders and merchandise at distributor / store.

This labelling concept also applies to types of transport units other than pallets.

For fish and fish products, the following applies:
STAND has decided to refer to Norwegian Standard NS17099:2020 “Information technology — Fishery and aquaculture products — Requirements for labelling of distribution units and pallets in the trade of fishery and aquaculture products” for products that fall under this category. This standard replaces todays NS9405: 2014 “Fish and fish products. Requirements for labelling of distribution units and pallets in the trade of fish and fish products», and is valid as from 30. September 2020.

It can be ordered from Standard Norway.

Guidelines for labelling of Stock Keeping Units (SKU)

Type of bar code symbol
When labelling with bar code on Stock Keeping Units (SKU) GS1-128 bar code shall be used.

Identical information
Same information (GS1-128 AI) should only occur once per label.

Size and design of labels
Since the shape and size of the Stock Keeping Units (SKU) is highly varied, size and design of the label may also vary.

Quality of labels
It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit. Therefore, the quality of GS1-128 bar codes must minimum fulfill print quality with “Grade C” according to standard ISO / IEC 15416.
To achieve “Grade C” when reading, “Grade B” or better is recommended at printing.
Quality of labels and bar codes can be verified at GS1 Norway.

Placement of labels on Stock Keeping Units (SKU)
It is recommended that the Stock Keeping Units (SKU) is labelled on two sides.
If labelling can only be done on one side, the label on the Stock Keeping Unit (SKU) must be on the same side as one of labels on the pallet (consistent orientation).

By column stacking the Stock Keeping Unit (SKU) label will be oriented towards one pallet label (either on the short or long side of the pallet).

 

By bond stacking (like bricks) the Stock Keeping Unit (SKU) label could be oriented towards the two labels of the pallet. That is, both on the short and the long side of the pallet.

  

Bar codes
The following recommendations apply to GS1-128 bar code symbols:

• The orientation of the bar code should be such that the bars are vertical (picket fence).
• Size factor is in the range of 25 to 94% of nominal size.
• The minimum bar code height is 13 mm.
• Minimum 5 mm height on human readable text.
• The location of the bar code should be such that the bottom of the bar code is about 32 millimeters from the bottom of the Stock Keeping Unit (SKU).
• The bar code symbol included quiet zone (margins), must be at least 19 millimeters from a vertical edge to avoid damage to the label.
• If the height of the Stock Keeping Unit (SKU) is less than 50 mm, the bar code should be placed as high as possible and information to be written in plain text can be placed to the left of the bar code

 

Placement of bar code symbols on the Stock Keeping Unit (SKU)

Placement of bar code symbols on Stock Keeping Units (SKU) with height less than 50 mm

 

Transport information on pallet with example of transport label

Content of the Standard shipping label for the Norwegian grocery sector.

Overview of labelling of Standard shipping label:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
Recipient’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the Crossdocking terminal	Must be labelled when the delivery is via the Crossdocking terminal	Not labelled
Buyer’s reference	Must be labelled	Not labelled
Gross weight	Must be labelled	Can be labelled	3300	n4 + n6
Max. Top load1)	Must be labelled	Not labelled
Temperature requirements	Must be labelled	Not labelled
SSCC (License Plate)	Must be labelled	Must be labelled	00	n2 + n18
1)    Max Top load is omitted for Mixed pallet.

 

Example of Standard shipping label for the grocery industry

 

 

Transport label for Standard pallet
Standard pallet is labelled with Standard shipping label for the grocery industry

A GS1 product label on a Standard pallet requires labeling of SSCC, gross weight, top load weight and temperature requirements.

This information can therefore be omitted from Standard shipping label for the grocery industry.

If both product label and transport label are used, SSCC can be labelled on both labels provided that the identical number is used.

 

Transport label for Promotional Unit
The Distribution Unit (DU) containing one or more Promotional Units is labelled with Standard shipping label for the grocery industry.

The Distribution Unit (DU) is identified and labelled with its own SSCC

If the Promotional Unit a 1/1 pallet, the same labelling of transport label as for Standard pallet is used.

Transport label for Mixed pallet
Mixed pallet (both with and without interlayer pallet) is labelled with Standard shipping label for the Norwegian grocery industry.

If the Mixed pallet is not stackable, information on Top load is omitted.

Transport label for Customer packed pallets
The Customer packed pallet is labelled with Standard shipping label for the grocery industry.

Note in particular:

 Recipient’s name, address, etc.

As recipient transit warehouse is given and transit address is given as delivery address. The pallet must be labelled with the transit warehouse’s name, street address, postal code and postal address in human readable text.

Name, address, etc. for the distribution warehouse.

The via-field the distribution warehouse is given. The pallet must be labelled with the distributions warehouse’s name, street address, postal code and postal address in human readable text.

 

Transport label for Customer packed units

Transport Information.

On this label, a separate field has been created for transport information. This is information that the buyer sends to the supplier in his order and which the supplier must put on the Customer packed unit’s transport label.

Format and content of transport information is agreed between the parties.

 

Content in transport label for customer packed unit

Transport label for customer packed unit:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
End recipients’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the transit warehouse1)	Must be labelled	Not labelled
Transport information2)	Must be labelled	Not labelled
Buyer’s reference3)	Must be labelled	Not labelled
Gross weight4)	Must be labelled	Can be labelled	3300	n4 + n6
Temperature requirements	Must be labelled	Not labelled
SSCC Code (licence plate)	Must be labelled	Must be labelled	00	n2 + n18
1) Transit Warehouse where the pallet is split/cross-docked, is stated in the VIA-field
2) Transport information is agreed between the parties
3) Example The Customers Ordering Number
4) Gross weight is the sum of weight of the products, packaging materials and pallet (load carrier)

Example of shipping label for Customer packed unit

 

Bar code requirements for labelling with GS1-128 on Distribution Units (DU)

Bar code label with GS1-128 bar codes shall be done according to GS1 General Specifications Chapter 5.4.

Note in particular:

• Size factor is in the range of 50 to 94% of nominal size.
• The minimum bar code height is 32 mm.
• When labelling GTIN (AI 01 and AI 02) always use 14 digits.
  When GTIN has 13 digits, you must enter a leading 0 (ex. 07038010000065).
• For bar code labelling with GS1-128, a separator, called Function Code 1 (FNC1), is used between the individual information elements (AI’s).
  This applies except for the AI’s that have predefined fixed length.
  The following AI’s in this document have predefined length AI 00, AI 01, AI 02, AI 15.
• It is recommended to have the AI’s to be followed by FNC1 at the end of the bar code, as the FNC1 code may be omitted.
• It is important to the requirements for quiet zone (margins) to be adhered to.
  At size factor 50%, the right and left quiet zone margin is 5 mm, and at the size factor 94% the quiet zone margins are 9.4 mm.

Product tracking requirements

The legislation requires that each company must have systems to document which products are purchased from each supplier and which customer has purchased the company’s finished products.

This also includes raw materials and other input that are covered by the legislation.

There is no requirement in the legislation for which type of systems to be used for this.

Businesses can practice more comprehensive tracking systems than the minimum regulatory requirements require, but this is either based on self-imposed requirements or agreements with, and orders from the contracting parties.

Tracking means being able to follow the physical flow of goods. This is often referred to as chain traceability, and assumes that all parties meet the requirements and follow the guidelines for tracking.

Tracking takes into account the legal requirements for all parties to be able to trace their products one step forward and one step back in the value chain.

Tracking one step forward:

This means to the address the products are delivered to.

An invoice system containing information about item number / item name, customer number / customer name and invoice date is sufficient to be able to trace one step forward in the value chain.

If the company is using batch/lot numbers for their products, this should be included in the invoice, despatch advice and the like, or linked directly to the company’s own systems.

Tracking one step backward:

This means the address from which the products are delivered.

The company must keep a log of received products describing which products were purchased from whom and in which quantitiy, and date.

If the addresses for where products are delivered from or delivered to are not in accordance with the legal ownership of the products and the invoice process, this should be agreed separately between the parties.

Transfer of responsibility for products at Ex Works delivery terms

The responsibility for the products is transferred when the seller has made the product available for the buyer in accordance with the agreement.

Unless otherwise agreed, the buyer is responsible for loading of products.

The buyer is liable for any risk of loss or damage to the products from the time the products is placed at the buyer’s disposal.

Create documentation, send and receive Despatch Advice

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant for the preparation and transmission of documentation for a given delivery.

Essentially, this is related to the Despatch Advice and how it is used for Standard pallets, Mixed pallets, Promotional Units and Customer packed pallets, for these forms of distribution:

• Distributor deliveries
• Deliveries direct to retailer
• Crossdock deliveries

 

The areas described are:

• General information about requirements for delivery documentation
• Use of EDI in the retail trade and how EDI can be implemented
• Requirements for design and content in Despatch Advice (Message description)
• EDI exchange agreement and how this should be used, to document interaction related to the exchange of the Despatch Advice

Create documentation, send and receive EDI Despatch Advice

Develop documentation

STAND makes no direct claim to any documentation that will accompany or document a delivery, as well as the fact that the EDI Despatch Advice is always to be used for distributors or Crossdock deliveries.

For deliveries direct to retailer, there should bilaterally be agreed if the EDI Despatch Advice is to be sent.

It is nevertheless understood that there may be a need for documentation beyond this, such as consignment, transport documents or other accompanying documentation.

In certain types of deliveries or in given situations there may also be legal requirements for which documentation that shall follow the shipment.

The parties must bilaterally agree what documentation is required in addition to the EDI Despatch Advice.

Send Despatch Advice

When the supplier has picked, labelled and clarified delivery for pick-up (at delivery condition Ex Works) at the agreed time and place, the Despatch Advice shall be sent in accordance with deadline.

One Despatch Advice should only include one order. Exceptions to this may occur at Crossdock.

The Despatch Advice should refer to previous orders.

Despatch Advice shall contain only the products and the quantity delivered.

Exceptions to this may occur at Crossdock, but this must be agreed bilaterally.

Distribution Units (DU) must be identified with SSCC (Serial Shipping Container Code) and this information must be sent in the Despatch Advice.

SSCC is the most important tracking key and associates the individual products in the delivery up to which pallet products are located.

The Despatch Advice is shipped with different details of information, depending on which pallet type the delivery consists of or what has been agreed bilaterally.

Normally, what applies:

• Standard pallet must be sent at level 3
• Mixed pallet must be sent at level 3
• Customer packed pallets must be sent at Level 4
• Promotional Unit must be sent at level 4. Level 3 can be agreed bilaterally

For Promotional Units, the following formulation applies from STAND:

«The grocery industry has a common goal that all deliveries should be traceable as far as possible through the entire value chain. For Promotional Units, this is achieved only by labelling each Promotion Unit with a unique identifier (SSCC) and include it in the Despatch Advice sent to the retail chain. This ensures traceability all the way to the store.

Today, it is variable practices in suppliers on which level of Despatch Advice is used on Promotional Units. The goal is that the industry part will prepare the systems for sending and using Level 4 of Despatch Advice on Promotional Units before the end of 2019 ».

For those who use TakeCargo for transport, the following applies:

• The sender’s consignment number must be sent in the Despatch Advice.
• In Norway, GS1 GINC (Global Identification Number for Consignment) is used as the unique identification of the individual consignment. Documentation of structure can be found at gs1.no.
• The GS1 GINC is preferably used by the transporter. From the the customers, a transport instruction is sent to the carrier (via TakeCargo) which describes the shipment itself. In the transport instructions, the GS1 GINC must be included. It is a requirement that the GS1 GINC sent in the Despatch Advice message is also affixed to the transport documents handed over to the carrier when the products are collected.

Despatch Advice can also be sent to the load carrier (eg NLP) with information about the number of pallets of each pallet type included in the pallet exchange scheme.
This information enables automatic pallet balance update between customer and supplier.
The use of a Despatch Advice for the update of cargo information must be agreed with a cargo carrier before it is taken into service.

The Despatch Advice can also indicate the number of pallet places the delivery requires in transport. This information allows the distributor at Ex Works to calculate the transport needs, thereby sending the correct size of the lorry when the delivery is to be picked up.

Receive Despatch Advice

Upon receipt of a Despatch Advice, the customer can plan and prepare products receipt.
The use of Despatch Advice simplifies products receipt and contains, in addition to other information, traceability information on the products.

The Despatch Advice number must be unique to each Despatch Advice sent from the supplier.
The buyer shall reject a Despatch Advice with a number that has been received and processed earlier.

How the Despatch Advice is used by the customer in internal systems is not covered by STAND guidelines.

Pick up from supplier, transport to distributor / retailer

This sub process describes the requirements, recommendations and guidelines STAND has on how physical delivery is to take place, with the emphasis on the controls to be carried out when taking responsibility for the delivery.

The areas described are:

• Transfer of responsibility for a product at Ex Works delivery terms
• Checks to be performed by the carrier, and possible complaints related to this
• Labelling of transport information and guidelines for labels on Distribution Units (DU)
• Requirements for pallet / palletization on Distribution Units (DU)
  • Valid pallets and requirements for these
  • Requirements for the design of the Distribution Unit (DU) and palletization
  • Placement of Stock Keeping Unit (SKU) on pallet
  • The top load labelling system

Check of products at loading, receipt at warehouse, and retailer at Ex Works delivery terms

The buyer or the party acting on behalf of the buyer shall, when the responsibility for the products has been transferred, control the quantity and possible damage to a reasonable extent.

• When loading:
  • The number of load carriers and external damage is checked, and whether an exchange or reusable pallet is used.
• Reception at distributor’s warehouse:
  • Number of load carriers, external damage, correct product, and if used
    exchange or reusable pallet.
    Date labelling and number of Stock Keeping Units (SKU) are checked when placed on a stall or pick-up place.
• Reception in store:
  • Damage that could not have been discovered when receiving the delivery at the distributor’s warehouse.

Transport information on pallet with example of transport label

Content of the Standard shipping label for the Norwegian grocery sector.

Overview of labelling of Standard shipping label:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
Recipient’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the Crossdocking terminal	Must be labelled when the delivery is via the Crossdocking terminal	Not labelled
Buyer’s reference	Must be labelled	Not labelled
Gross weight	Must be labelled	Can be labelled	3300	n4 + n6
Max. Top load1)	Must be labelled	Not labelled
Temperature requirements	Must be labelled	Not labelled
SSCC (License Plate)	Must be labelled	Must be labelled	00	n2 + n18
1)    Max Top load is omitted for Mixed pallet.

 

Example of Standard shipping label for the grocery industry

 

 

Transport label for Standard pallet
Standard pallet is labelled with Standard shipping label for the grocery industry

A GS1 product label on a Standard pallet requires labeling of SSCC, gross weight, top load weight and temperature requirements.

This information can therefore be omitted from Standard shipping label for the grocery industry.

If both product label and transport label are used, SSCC can be labelled on both labels provided that the identical number is used.

 

Transport label for Promotional Unit
The Distribution Unit (DU) containing one or more Promotional Units is labelled with Standard shipping label for the grocery industry.

The Distribution Unit (DU) is identified and labelled with its own SSCC

If the Promotional Unit a 1/1 pallet, the same labelling of transport label as for Standard pallet is used.

Transport label for Mixed pallet
Mixed pallet (both with and without interlayer pallet) is labelled with Standard shipping label for the Norwegian grocery industry.

If the Mixed pallet is not stackable, information on Top load is omitted.

Transport label for Customer packed pallets
The Customer packed pallet is labelled with Standard shipping label for the grocery industry.

Note in particular:

 Recipient’s name, address, etc.

As recipient transit warehouse is given and transit address is given as delivery address. The pallet must be labelled with the transit warehouse’s name, street address, postal code and postal address in human readable text.

Name, address, etc. for the distribution warehouse.

The via-field the distribution warehouse is given. The pallet must be labelled with the distributions warehouse’s name, street address, postal code and postal address in human readable text.

 

Transport label for Customer packed units

Transport Information.

On this label, a separate field has been created for transport information. This is information that the buyer sends to the supplier in his order and which the supplier must put on the Customer packed unit’s transport label.

Format and content of transport information is agreed between the parties.

 

Content in transport label for customer packed unit

Transport label for customer packed unit:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
End recipients’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the transit warehouse1)	Must be labelled	Not labelled
Transport information2)	Must be labelled	Not labelled
Buyer’s reference3)	Must be labelled	Not labelled
Gross weight4)	Must be labelled	Can be labelled	3300	n4 + n6
Temperature requirements	Must be labelled	Not labelled
SSCC Code (licence plate)	Must be labelled	Must be labelled	00	n2 + n18
1) Transit Warehouse where the pallet is split/cross-docked, is stated in the VIA-field
2) Transport information is agreed between the parties
3) Example The Customers Ordering Number
4) Gross weight is the sum of weight of the products, packaging materials and pallet (load carrier)

Example of shipping label for Customer packed unit

 

Valid pallets

This is an animation that show what pallets are valid for distribution.

Requirements specifications can be downloaded here:

Requirements for approved EUR-pallets
Specification for reusable 1/1 plastic pallet
Specification for reusable 1/2 plastic pallet
Requirements specification for reusable 1/3 plastic pallet (from NLP)
Specification for reusable 1/4 plastic pallet
Requirements Specification reusable 1/2 wooden pallet
Requirements specification for 1/3 and 1/2 disposable cardboard pallet

Placement of Stock Keeping Unit (SKU) on pallet

It is a prerequisite for maintaining strength, that Stock Keeping Units (SKU) are placed within the edges of the pallet with a small margin.
Devices placed on or outside the edge can cause damage with subsequent reduced carrying capacity / risk of injury.

The pallet area should be utilized as best as possible with products. By following the Modular system optimal use of the pallet is ensured and reduces the risk of the load shifting during transport.

Overhang is not accepted.

Goods reception

This sub process describes the requirements, recommendations and guidelines STAND applies to receiving a delivery.
It does not describe internal procedures, but focuses on controls that shall and can be done upon receipt of the delivery. The check includes both Distributions Units (DU) and the individual Stock Keeping Unit (SKU).

In addition, the sub process describes some of the traceability and main points of any recall or withdrawal, as products receipt may have an active role in any eventual events.

Finally, measurements of service levels are described and how this can be used as an effective tool for establishing a common platform as a basis for measurement, communication and mutual evaluation of performance.

The areas described are:

• Transfer of responsibility for a product at Ex Works delivery terms
• In general, what controls should be performed on products receipt at Ex Works delivery terms
• Valid pallets and requirements for these
• Assessments related to shelf life
  • Assessment of total shelf life on a product with an allocation table
  • Execute customer order related to product shelf life
  • The establishment of bilateral agreements for the assessment of shelf life
• Complaints according to Ex Works delivery terms
• Guidelines for return of products
• Labelling requirements
  • Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)
  • Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label
  • Guidelines for labelling of Stock Keeping Units (SKU)
  • Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label
  • Labelling of transport information
  • Guidelines for labels on Distribution Units (DU)
  • Bar code requirements for labelling with GS1-128 on Distribution Unit (DU)
• Packaging / palletization
  • Requirements for the design of Stock Keeping Units (SKU) and packaging, with the modular system, case fill rate and top load labelling system, as well as special requirements for products and pallets in order for this to work in the distributor’s automated warehouse
  • Requirements for the design of the Distribution Unit (DU) and palletization
• Traceability of delivery
  • Guidelines for traceability, recall and withdrawal
  • Requirements for traceability of products and the product areas covered by this
  • Requirements for traceability information and labelling
  • Alternative ways to track and trace a product in the value chain
  • Implementation of actions when an event occurs
• Measurement of service levels, with definitions on target measures and examples of how these are calculated

Check of products at loading, receipt at warehouse, and retailer at Ex Works delivery terms

The buyer or the party acting on behalf of the buyer shall, when the responsibility for the products has been transferred, control the quantity and possible damage to a reasonable extent.

• When loading:
  • The number of load carriers and external damage is checked, and whether an exchange or reusable pallet is used.
• Reception at distributor’s warehouse:
  • Number of load carriers, external damage, correct product, and if used
    exchange or reusable pallet.
    Date labelling and number of Stock Keeping Units (SKU) are checked when placed on a stall or pick-up place.
• Reception in store:
  • Damage that could not have been discovered when receiving the delivery at the distributor’s warehouse.

Allocation of total shelf life on a product

Reducing food waste is an overall goal in society. Food waste related to exceeding the limit values of shelf life between the parties in the value chain, constitutes a significant part.
Surveys shows that food waste are significantly reduced if the store and the consumer have a larger part of the total shelf life.

It is therefore a goal that the producer and distributor consume the least amount of available time and that the maximum amount of time is exposed to the consumer.

The grocery industry has defined one Table for allocation of shelf life of a product which regulates the responsibility for and expectations the recipient of products has, linked to shelf life. Online players with b2c sales will be defined as retailers when dividing total shelf life.

In case of minor exceedances of the table’s limit values, participants are expected to seek solutions that provide the lowest possible food waste.

The parties are encouraged to develop performance and collaborate to reduce consumption of shelf life.

Endringslogg

Dispatch of customer orders related to product shelf life

Transport time and delivery frequency should, if possible, be criteria that are taken into account in cases where there is different shelf life on products available at time of shipment.
«Fresher products» are delivered to distributors or customers with long distances of transport / low frequency of delivery.

Guidelines for return of products

Return of saleable, undamaged products is usually not accepted.
However, the parties may make agreements for return of products for example in connection with:

• Replacement of old product upon introduction of a new product
• Seasonal products
• Campaigns initiated by the seller
• Returns must always be agreed in advance.

Product information on Stock Keeping Unit (SKU), with example of Stock Keeping Unit (SKU) label

Only product information should be labelled on a Stock Keeping Unit (SKU).
What information to be labelled depends on the type of product.

Intermediate Cartons shall be labelled as Stock Keeping Units (SKU)

Possible product information which SHALL or CAN be labelled on a Stock Keeping Unit (SKU)

GTIN – Global Trade Item Number
Includes GTIN-8 (8 digits), GTIN-12 (12 digits), GTIN-13 (13 digits) and GTIN-14 (14 digits).

All Stock Keeping Units (SKU) must have their own GTIN.
– For variable measure Stock Keeping Units (SKU), GTIN-14 with a leading digit 9 should be used.
– For other products, GTIN-13 is recommended.

Name of brand owner
– shall be shown in plain text either on the label or on the packaging.

Product name
– Must be written in plain text on the Stock Keeping Unit (SKU) product label.
– Must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, – and product description.
– The product description labelled on the Stock Keeping Unit (SKU) must be identical to the text in the Despatch Advice and Invoice.
-Product description should also contain a package description: for example, Coffee 12 x 500gr.

Batch / lot number
– A number generated by the manufacturer, used to achieve full traceability of product lot/batches in the value chain
– GS1-128 AI 10 must be used.

Shelf life information (“Best before” date, alternatively “Expiry date”)
– Must be labelled on all Stock Keeping Units which has shelf life printed on the Consumer Unit (CU)

GS1-128 AI 15 shall be used for «Best before date”
GS1-128 AI 17 shall be used for «Expiry date»

Net weight
– GS1-128 AI 3103 shall be used for variable measure Stock Keeping Units (SKU).
– Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Supplier’s item number
– can be labelled in plain text.

Table showing what SHALL or CAN be labelled:

Overview of product information that shall or may be labelled on Stock Keeping Unit (SKU):
Information	Human readable text	GS1-128 (bar code)	AI	Format
GTIN for Stock Keeping Unit (SKU)	Must be labelled	Must be labelled	01	n2 + n14
Name of brand owner	Must be labelled	Not labelled
Product name	Must be labelled	Not labelled
Batch / lot number	Must be labelled	Must be labelled	10	n2 + an..20
Shelf life	Must be labelled if shelf life is marekd on the Consumer Unit (CU)	Must be labelled if shelf life is marekd on the Consumer Unit (CU)	15, alternatively 17	n2 + n6
Net weight	Must be labelled for products with variable measures	Must be labelled for products with variable measures	310x	n4 + n6
Supplier’s item no.	Can be labelled	Not labelled

 

Example of GS1 Product label for Stock Keeping Unit (SKU), for a product with “Best before” date and a fixed weight:

Example of GS1 Product label for Stock Keeping Unit (SKU), for a product with “Expiry date” and variable measures:

Transport information on pallet with example of transport label

Content of the Standard shipping label for the Norwegian grocery sector.

Overview of labelling of Standard shipping label:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
Recipient’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the Crossdocking terminal	Must be labelled when the delivery is via the Crossdocking terminal	Not labelled
Buyer’s reference	Must be labelled	Not labelled
Gross weight	Must be labelled	Can be labelled	3300	n4 + n6
Max. Top load1)	Must be labelled	Not labelled
Temperature requirements	Must be labelled	Not labelled
SSCC (License Plate)	Must be labelled	Must be labelled	00	n2 + n18
1)    Max Top load is omitted for Mixed pallet.

 

Example of Standard shipping label for the grocery industry

 

 

Transport label for Standard pallet
Standard pallet is labelled with Standard shipping label for the grocery industry

A GS1 product label on a Standard pallet requires labeling of SSCC, gross weight, top load weight and temperature requirements.

This information can therefore be omitted from Standard shipping label for the grocery industry.

If both product label and transport label are used, SSCC can be labelled on both labels provided that the identical number is used.

 

Transport label for Promotional Unit
The Distribution Unit (DU) containing one or more Promotional Units is labelled with Standard shipping label for the grocery industry.

The Distribution Unit (DU) is identified and labelled with its own SSCC

If the Promotional Unit a 1/1 pallet, the same labelling of transport label as for Standard pallet is used.

Transport label for Mixed pallet
Mixed pallet (both with and without interlayer pallet) is labelled with Standard shipping label for the Norwegian grocery industry.

If the Mixed pallet is not stackable, information on Top load is omitted.

Transport label for Customer packed pallets
The Customer packed pallet is labelled with Standard shipping label for the grocery industry.

Note in particular:

 Recipient’s name, address, etc.

As recipient transit warehouse is given and transit address is given as delivery address. The pallet must be labelled with the transit warehouse’s name, street address, postal code and postal address in human readable text.

Name, address, etc. for the distribution warehouse.

The via-field the distribution warehouse is given. The pallet must be labelled with the distributions warehouse’s name, street address, postal code and postal address in human readable text.

 

Transport label for Customer packed units

Transport Information.

On this label, a separate field has been created for transport information. This is information that the buyer sends to the supplier in his order and which the supplier must put on the Customer packed unit’s transport label.

Format and content of transport information is agreed between the parties.

 

Content in transport label for customer packed unit

Transport label for customer packed unit:
Information	Human readable text	GS1-128 (bar code)	AI	Format
Sender’s name, street address, postal code, city	Must be labelled	Not labelled
End recipients’s name, street address, postal code, city	Must be labelled	Not labelled
Name, address, etc. for the transit warehouse1)	Must be labelled	Not labelled
Transport information2)	Must be labelled	Not labelled
Buyer’s reference3)	Must be labelled	Not labelled
Gross weight4)	Must be labelled	Can be labelled	3300	n4 + n6
Temperature requirements	Must be labelled	Not labelled
SSCC Code (licence plate)	Must be labelled	Must be labelled	00	n2 + n18
1) Transit Warehouse where the pallet is split/cross-docked, is stated in the VIA-field
2) Transport information is agreed between the parties
3) Example The Customers Ordering Number
4) Gross weight is the sum of weight of the products, packaging materials and pallet (load carrier)

Example of shipping label for Customer packed unit

 

Guidelines for labels on Distribution Units (DU)

Placement of labels on pallet
Two types of labels shall be used; label for product information and label for transport information.

• The minimum requirement is that the pallet should be labelled on two sides with both label types; one of the short sides of the pallet and the right hand long side (seen from the short side).
• Product and transport label must be on the same side of the pallet.
• When multiple labels are used on the same side of the pallet, the labels should be placed underneath each other. The label that contains SSCC placed at the bottom.
• The labels should be placed so that the bottom of the lowest bar code should be at least 400 mm above the floor, and the top of the uppermost bar code should not be more than 800 mm above the floor.
• The label should be placed at least 50 mm from the vertical edge.
• For pallets lower than 400 mm the labels should be placed as high as possible.
• If all information is known at the time the pallet is labelled and there is space on the label, all information can be labelled on one single label.
• To ensure automatic reading of the bar codes Promotional Units, Customer packed pallet and Mixed pallet should only the transport label on the transport unit be readable
• Product label on Standard pallet with height 60 cm (Standard pallet – Low) should be placed as high as possible.

Identical information
Same information (GS1-128 AI) shall only appear once on the product and transport label.
This means in practice that the same information can not be repeated on the same label or that the same information may appear on multiple labels on the device (pallet).
The exception is SSCC which is allowed on both labels if it is an identical number used.

Size and design of the labels
The following recommendation applies:

• The width of the label should be 105 mm or 148 mm
• The height of the label may vary

Recommended formats are:

• A5 (148mm x 210mm)
• A6 (105mm x 148mm)
• 105 mm x 192 mm

Quality of labels

• It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit
• It is a requirement that the quality of GS1-128 bar codes minimum meets print quality with “Grade C” according to Standard ISO / IEC 15416.
  To achieve “Grade C” when reading, “Grade B” or better by printing is recommended
• When affixing the labels, it is important to ensure that the bars in the GS1-128 symbol are correct and unbroken (avoid “wrinkling” on the label).

Requirements for design of Stock Keeping Unit (SKU) and packaging

Stock Keeping Unit (SKU) is the unit the retailer buys.
Stock Keeping Unit (SKU) occurs in various forms, such as carton, reusable box / pallet box, intermediate carton and such.

The most important task of the Stock Keeping Unit (SKU) is to secure Consumer Units (CU) from the time of manufacturing until it is finished exposed in a shop shelf.

The number of Consumer Units (CU) in a Stock Keeping Unit (SKU) is determined by the manufacturer, preferably in dialogue with the distributor / retail chain.

The Stock Keeping Unit (SKU) must be adapted to the modular system, see Modular system

for picking and grouping of products can be done as efficient as possible.

Case fill rate shall be calculated. This is described in Case fill rate

Stock Keeping Unit (SKU) must be designed to withstand the strain required in the value chain.

Automatic warehouses require that Stock Keeping Units (SKU) must be packed in a way that it can be lifted, stacked, clamped and handled with different mechanized devices, see Automated warehouse at distributor – greater understanding of the depalletization process.

Design requirements and packaging

When designing a Stock Keeping Unit (SKU), it must be based on the modular system.
This means that the Stock Keeping Unit (SKU) should not be less than 100 x 150 mm and not more than 400 x 600 mm.

Example of best practices

Modular Stock Keeping Unit (SKU).

 

Example of an inappropriate Stock Keeping Unit (SKU)

Stock Keeping Unit (SKU) is not adapted to the modular system.

The size of the Stock Keeping Unit (SKU) must consider the size of the shelf space for the current product group.
The short side of the Stock Keeping Unit (SKU) should be front where appropriate.

There must be a simple and clear opening guide, preferably with illustration.

The packaging must be opened without using a knife.

When the Consumer Units (CU) is exposed in the Stock Keeping Unit (SKU), the least possible of the Stock Keeping Unit’s (SKU) packaging should be visible when exposed in the store shelf.

Stock Keeping Unit (SKU) must not weigh more than 15 kg.

Stock Keeping Unit (SKU) must be in recyclable cardboard or plastic.

Example of an inappropriate Stock Keeping Unit (SKU)

Lid / plastic film is missing, which may cause Consumer Unit (CU) to fall out during internal transport.

Plastic boxes – all variants – must be considered to work in automated warehouse handling.

Stock Keeping Unit (SKU) must be form stable.

Example of best practices
Stock Keeping Unit (SKU) is form stable.

Example of best practices
Form stable Stock Keeping Units (SKU) that embraces close to its content and is strong enough to not deform.
Resists load on inbound transport (2 pallets in height), as well as handling through the value chain.

Example of an inappropriate Stock Keeping Unit (SKU)
Not form stable. Do not resist strain on inbound transport (2 pallets in height), as well as handling through the value chain.

Stock Keeping Unit (SKU) that is only wrapped in plastic foil must have a tray / trough below.

Example of best practices
Stock Keeping Unit (SKU) on tray / trough with plastic wrap.

Stock Keeping Units (SKU) must have straight sides.

Example of best practices
Stock Keeping Units (SKU) with straight sides.

Glue quality and amount of glue on Stock Keeping Unit (SKU) must be such that glued surfaces do not loosen.

Example of best practices
Glue quality and amount of glue is such that glued surfaces do not loosen.

Constructed example of an inappropriate Stock Keeping Unit (SKU)
Too little glue / too few glue points are included that flap gaps with subsequent stops in automatic warehouse systems.

The Stock Keeping Unit (SKU) should be stackable and “ears” should only be used where it is necessary for stability.
Should “ears” be used, these should not exceed 5mm and should not be used in conjunction with intermediate pallet sheets.

Stock Keeping Unit (SKU) should not have loose lid.
The lid must be attached to the tray / trough in such a way that it does not loosen during handling. It is recommended to use glue points or a locking mechanism.

The Stock Keeping Unit (SKU) must have a center of gravity relative to the base that allows it to be handled on conveyor belts.
The height / width ratio should be below 1.7 to ensure that the products do not fall under internal transport in an automatic warehouse.

Example of best practices
The ratio height / width is below 1.7.

 

Example of an inappropriate Stock Keeping Unit (SKU)
The height / width ratio is over 1.7, which means that the Stock Keeping Unit (SKU) can fall during internal transport.

Stock Keeping Unit (SKU) exposure front should not be less than 30 mm, regardless of the chosen solution.
The information on the Consumer Unit (CU) must be visible.

Packaging capacity

During the design of the product and packaging it must be considered that the outer dimensions of the finished Stock Keeping Unit (SKU), tray and otherwise, under the load of the above-mentioned product packaging, due to bulging, is within the margin. In practice, this can be from 0.5 to 1.0 cm.

Optimal transport requires the use of load capacity of the transport systems (weight and height).

Generally, the packaging should be able to carry a similar pallet (2 identical pallets) without any breakage or clamping damage during transport and storage.

Exceptions from this must be specified and labelled on the (Distribution Unit (DU).

Method of calculation of carrying capacity is described in Top load labelling system.

The packaging shall be able to withstand shipping with other products for shipping to the store in a rational way.

In order to achieve the industry’s common goal of efficient flow of products, reduced negative environmental impact, promoted sales and reduced losses, it is important to focus on:

• Top load
• Stackability
• Module customization

Especially for reusable boxes / pallet boxes
Basically, Stock Keeping Units (SKU) is desired in cardboard, or in combination with plastic.

Reusable boxes are an alternative to Stock Keeping Units (SKU) in corrugated paper but must be agreed bilaterally.

Particularly for Intermediate cartons
The use of Intermediate cartons should be kept as low as possible and must be agreed bilaterally.

Intermediate cartons are accepted in cases where the Stock Keeping Unit (SKU) solution is not possible because the Stock Keeping Unit (SKU) does not meet the requirements for strength, stability or size and where the use of intermediate pallet sheet on pallet is not possible.

The intermediate carton must be labelled so that it clearly differs from the Stock Keeping Unit (SKU) and shall not weigh more than 15 kg.

Placement of Stock Keeping Unit (SKU) on pallet

It is a prerequisite for maintaining strength, that Stock Keeping Units (SKU) are placed within the edges of the pallet with a small margin.
Devices placed on or outside the edge can cause damage with subsequent reduced carrying capacity / risk of injury.

The pallet area should be utilized as best as possible with products. By following the Modular system optimal use of the pallet is ensured and reduces the risk of the load shifting during transport.

Overhang is not accepted.

Routines covered by the guidelines

Legislative anchoring of the guidelines

The guidelines are among others based on Norwegian or European regulations on food safety and traceability:

• Product Liability Act of 23 December 1988
• Act on food production and food safety, etc. of 19.12.2003 Matloven (Food Law)
• Regulations on internal control to comply with IK-mat forskriften (IK Food Law)
• EU Food Law (Regulation EC 178/2002)
• Directive 94/62 / EC on packaging and packaging waste

Each party has an obligation to familiarize themselves with the regulations that apply to the products your business sells or are involved in.

The legislation does not impose requirements on how tracking should be performed, and what systems in which tracking information should be recorded. Manual systems may be sufficient as long as the requirements for tracking and tracking information are met. 

Routines

The guidelines cover two procedures

• Requirements for and how to design contingency routines
• Implementing actions should an incident or crisis occur

Prepare crisis procedures

This is included:

• Prepare a Risk Analysis
• Prepare a Contingency Plan
• Requirements for product tracking
• Tracking information and labeling requirements

Prepare a Contingency Plan

If unwanted incidents or crises occur, it is important to be well prepared.

Possible scenarios for what might arise should be thought through and how this should be handled.

A Contingency Plan must be prepared that will allow you to cope with the situation quickly, correctly and effectively. The Contingency Plan must be accurate and accessible to all involved at all times.

The Contingency Plan includes:

• To designate a crisis team, responsible for traceability, recall and withdrawal.
• Internal and external contact lists to quickly reach everyone involved or affected by any incident or crisis
• Training and exercises in the company’s routines and instructions on how to handle incidents or crises. Exercises should be as realistic as possible and carried out with the closest business partner in the value chain
• This must be easily accessible and may consist of, for example
  • a brief overview of crisis teams with their roles and responsibilities
  • the company’s internal guidelines for handling incidents / crises
  • contact lists
  • other relevant documentation that is important to have access to should an incident or crisis occur

See more about the Contingency Plan here Design and contents of a Contingency Plan.

Requirements for tracking information and labeling

The main purpose of the tracking information is to lay the groundwork for effective blocking, withdrawal or recall of products.

Central tracking information is:

• GTIN (Global Trade Item Number) – Unique identification of products
• GLN (Global Location Number) – Unique identification of trading parties, pick-up points, delivery points etc.
• SSCC (Serial Shipping Container Code) – Unique identification of load carriers / pallets
• Batch / lot number – A unique batch or lot number defined by supplier / manufacturer
• Shelf life – Either Best Before date or Last Consumption Date

It is a requirement that the products are labeled to enable tracking.

The marking must be affixed to the product packaging and legible.

The following applies to finished goods traded between supplier and distributor / retailer:

Information to be marked:

• The name of the supplier
• Product name/description
• Product number identified with a GTIN.
• Best before date / last day of consumption date, if required
• Batch / Lot number, if required

Load carrier (for example pallet) shall be marked with SSCC.

The sender must in his system have an overview of which recipient the product was sent to, and also the recipient must have an overview of which sender the product was received from. Both sender and recipient must be identified with GLN.

Sender shall in his system register:

• Quantity sent
• Shipping Date
• Reception date (if known)

Recipient shall in his system register:

• Quantity received
• Shipping date (if known)
• Reception Date

The following applies to raw materials and other inputs:

• GTIN should be used for identification of inputs / raw material, if available
• GLN should be used for identification of sender / suppliers, if available

More about tracking information and how the product can be tracked in the value chain is described here Recommended traceability methods in the value chain.

Service Level – Purpose, types of target measures and assumptions

Intentions for measurement of service level

Measurement of service levels is a topic that most players are concerned with and are an important element in the relationships between supplier and customer.

The parties are free to agree whether to measure the degree of service.
If the parties agree to establish an agreement, STAND recommends that STAND’s definitions be used.

A challenge in relation to the exchange and evaluation of service level data has been that the trading partners often use different definitions and conditions for measurement and follow-up.

The recommendation contains suggestions for target measures and common definitions for measuring service levels. The purpose is to establish a common platform as a basis for measurement, communication and mutual evaluation of performance.

Joint exchanges of measurement results, based on the proposed definitions, could contribute to improved service levels and contribute to increased understanding of the parties’ views on customer and delivery services.

Target measures are based on DLFs (Dagligvaruleverantörers Förbund) and DULOGs (Dagligvaruhandelns Utvecklings- och Logistikgrupp ) common definitions, established in Sweden in 1998.
With this as a base as well as experience from companies with international relations, the prioritized definitions build upon the need for common understanding, measurement and evaluation of cross-border service.

With continuous follow-up, development and trends can be monitored over time. This will probably be more interesting than single results. Greater trend deviations are when warning signals and improvement programs should be implemented to reduce the likelihood that a similar situation will arise in the future.

Target measures

The recommendation describes 6 different target measures, of which STAND recommends that 3 of these are prioritized, as these can be quickly implemented in today’s systems.
Other target measures are composed of different combinations of priority targets.

Selection of target measures is done by the parties themselves and described in bilateral agreements.

The industry has an increasing focus on improving the service level to consumers, ie reducing out-of-stock in the stores. This is currently being worked on, including developing agreed definitions of how this should be measured and followed up. The following two KPIs can be used:

1. Lost sales:

When stock is zero at the end of the day, this will be set off against lost sales in the store.

Example: You have sold 40 during the day, and at the end of the day, the stock is zero. If this item had a sales forecast of 100 that day, the shelf service level of this item would be 40%.

When you aggregate this to store level, we will get a figure of how many customers were actually affected (based on the forecast) by the empty shelf.

2. Empty shelf

Number of article lines / products with stock = 0

Empty Shelf = ———————————————- ———————-

Number of article lines / products in the assortment in total

 Assortment is defined as what purchasing / category management has decided.

Deviations between what the individual store has in their space program, and the defined assortment for the store may have to be measured with a separate key figure; assortment loyalty.

For the reports, inventory = 0 means that inventory is 0 or less than zero in the store’s systems.

Other priority target measures:

• Correct quantity
• Correct time
• Correct administration

Combined target measures:

• Delivery of Order – Availability
• Complete orders at the right time
• The perfect order

The target measures can be used by both the customer and the supplier for follow-up of each other’s performance.

Prerequisites for target measures and definitions

Measure
In the measurements, the unit of measurement is described as “sales unit».
It is recommended that Stock Keeping Unit (SKU) is used as a sales unit. Stock Keeping Unit (SKU) is established in most systems and is the base for transactions; ex. ordering, delivery, billing etc. to the store.

Consumer Units (CU) as a unit of measurement, however, should be the vision and goal of the future, as the Consumer Unit (CU) is the unit of measurement that is uniform and shared throughout the value chain.

Agreement on measurement of service level
Which target measures to use and what definitions should apply should be anchored in a bilateral agreement.
The agreement can regulate conditions such as:

• Accrual
• Lead times
• Assortment
• Time frame
• How the exchange of measurement results should take place
• Where and when the measurement should take place for the measurement points associated with the priority target measure “Correct time»
• Duration of measurements. In choosing definitions, the parties must agree on the degree of service to be calculated over time or in relation to a contracted number of orders

Definitions – Combined target measures

The priority target measures can be combined in different ways, to create Combined target measures.

STAND has defined 3 examples:

Target measure Delivery Order – Availability

The target measure “Delivery Order” gives the proportion of the orders that are properly delivered.

Definition:

Quantity of complete orders delivered	= Level of Order Delivery
Total number of orders ordered

 

A complete delivery order contains all ordered sales units, in the correct quantity

Availability will primarily be measured as the priority target measure “Proper Quantity – Availability”, but to calculate the combined measurements below, it is a prerequisite that “Delivery Order – Availability” is calculated.

Complete orders at the right time – Availability & Reliability

The target measure describes both accessibility and reliability in the interaction.

The target measure is composed of the target measures:

• Delivery of Order – Availability
• At the right time – Reliability.

Definition:

Availability expressed per order –  Quantity of late or early delivery orders	= Complete orders at the right time
Total quantity of orders

 

Only one error per. order is counted

The measurement of “Complete Orders at the Right Time” shall be done at the place of arrival. At Incoterms Ex Works delivery terms, this is the supplier’s ramp

The perfect order

This is the most demanding target measure and measures all types of deviations regarding complete orders.

The target measure is composed of three previously defined target measures:

• Delivery of Order – Availability
• At the right time – reliability
• Correct administration – Security

Definition:

Quantity of complete orders delivered – late or early delivery orders – Orders with missing or incorrect documents – Orders with credit / debit notes	= The perfect order
Total quantity of orders

 

Only one error per. order is counted

If both the supplier and the customer’s obligations are considered in the target measure, the target measure represents the performance that the parties create in common.

Examples of calculation of service level for combined target measures can be found in the document

Examples of combined target measures

Invoicing

Invoicing

The sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant for settlement for deliveries to a customer, regardless of the method of distribution.

The process is based on the fact that all documentation is exchanged by EDI.

This sub process consists of the following activities:

• Send invoice
• Receive invoice and send invoice receipt
• Receive invoice receipt

Areas affected by, and subject to guidelines from STAND are:

• How EDI is used in the retail trade in general and in the invoicing process in particular
• Requirements and content of EDI messages for
  • Invoice
  • Invoice receipt
• EDI exchange agreement
• Generic description of settlement process

Send and receive invoice and invoice receipt

Send invoice

Based on the products and quantity delivered, as well as other terms of sale and delivery, the supplier produces an invoice and sends to the customer / invoice recipient.

Invoice must be sent by EDI unless otherwise agreed bilaterally.

One invoice shall only include delivery from one Despatch Advice.

At delivery terms Ex Works, one invoice will only deal with products delivered from one warehouse.

If credit note is sent, one credit note should only refer to one invoice.

Invoice must be continuously numbered, state the place of delivery, the invoice date and the name and address of the supplier and buyer. The invoice shall provide information about the product’s name, quantity and price, as well as tax and fees.

Receive invoice and send invoice receipt

If the supplier desires / needs it, it can be agreed bilaterally that the customer will send an invoice receipt to the supplier as confirmation that the customer has received an invoice.
Invoice receipt shall be sent by EDI unless otherwise agreed bilaterally.

The invoice receipt is available in two versions; simple and advanced invoice receipt. Difference is the degree of detail on content. Which version used must be bilaterally agreed.

The following content may be included:

• Code that shows how the customer has processed an invoice
  • Received and controlled
  • Received but not checked
  • Not accepted
• Error code, which shows what is wrong if the customer has entered the code = Not accepted:
  • Incorrect invoice amount in relation to invoice documentation
  • Invoice received earlier
  • GLN error in the buyer’s address field
  • No EDI agreement between the parties

One invoice receipt must cover only one invoice.

Invoice receipt can also be sent upon receipt of a credit note. Same rules as for invoice apply.

Receive invoice receipt

How the invoice receipt is used by the vendor in their internal systems is not covered by the STAND Guidelines.

Master data registration and product presentation

The process describes the flow of information and the physical flow of the product.
This is illustrated in a timeline.

Master data registration and product presentation follows a timeline

Products distributed over distributor, via Crossdock or directly to retailers following the same path.

The timeline indicates the very last deadline for completion of the respective activity.
Many of the activities are sequential, where startup assumes that previous activities have been completed.

Where possible, encourage mutual involvement as early as possible in the process to reduce costs and uncertainties. See also Communication and data exchange

The retail chains will operate with different forms, but they largely contain the same.

Current deadlines are available in section for downloads.

Product presentation (A2 in the timeline)

In the meeting where product news is presented, the supplier presents its news and suggestions for product range changes together with:

• Retail chain agreement form (incl. price)
• Finished PRICAT message
• Product samples (preferably before the planning phase)
• Proposals for assortment codes
• Proposed phase-in approach (time-managed or inventory-managed)
• Proposed delisting (time-managed or inventory-managed)
• News summary (in some retail chains)

Launch shall not be postponed

Launch will not be subject to major deviations between forecast (A4 in timeline) and actual ordering. In general, product news should be ready for pick-up from supplier from Monday U-2, or at the agreed time.

Measurement of service level

Good service level in the entire value chain is today a prerequisite for rational and competitive product flow, which in turn assumes that the performance can be measured and followed up.
Measurement and evaluation of service levels are crucial to prioritize and implement measures aimed at continuous improvements.

The parties are free to agree whether to measure the degree of service.
If the parties agree to establish an agreement, STAND recommends that STAND’s definitions be used.

Areas affected by, and subject to guidelines from STAND are:

• Intentions for measurement of service level
• Target measures and the conditions that apply to these
• Definitions of different types of target measures, with examples
  • Priority target measures
  • Combined target measures

Definitions – Priority target measures

The target measures are based on three important dimensions in the term «service level»:

• Quantity – availability
• Time – reliability
• Administration – security

The priority targets measures should be followed and evaluated continuously with focus on level, trends and development.

Target measures Correct quantity – availability

The target measure “Correct quantity” measures availability as precision in quantity delivered.

Definition:

Number of delivered sales Units	= Availability
Quantity of ordered sales Units

 

The quantity ordered is the amount that the customer initially ordered.
Not delivered quantity represents deviations in delivery.

Target measure At the right time – reliability

The target measure “At the right time” measure reliability as precision in delivery time.

The target measure is used to measure compliance with time limits defined in the agreement between the parties.
The target measure can be used along several dimensions in the value chain.
Examples may be if orders are sent at the right time, if order confirmations are sent at the right time, if delivery is picked up at the right time, if Despatch Advice is sent at the right time, etc.

Definition (with example order):

Number of late or early delivery orders	= Reliability
Total quantity of orders

 

Delayed or premature is determined by whether exchange / delivery is within the agreed time frame.
At Incoterms Ex Works delivery terms, the assessment of the supplier’s reliability is on the supplier’s ramp.
The delivery is received when the order / delivery etc., is acknowledged for.

Target measures Correct Administration – Security

The target measure “Proper Administration” measures security as compliance between what is ordered in the order and what has been delivered and has been invoiced, that is, the correct product without errors and with the correct documentation.

Definition:

Quantity of orders without credit / debit notes	= SAFETY
Total quantity of orders

 

Correct administration means that Despatch Advice, shipping notes, invoices etc. are complete and error-free in relation to the delivery.
Only credit and debit notes affecting physical delivery are included in the measurement.
The target measure can also be used to measure the quality of orders from the customer.

Examples of calculation of service level for priority target measures can be found in the document

Examples of priority target measures

Listing, all information attributes, forecast and delivery ability

Listing, all information attributes, forecast and delivery ability

This sub process consists of points (A3-A5 in timeline):

• Feedback on listing / main assortment and confirmation of delivery ability
• Time-managed or inventory-managed assortment change
• Master data registration – completion of complete information attributes
• Forecast and delivery confirmation (A4 in timeline)
• Routine for delay from supplier / private label
• Assortment changes outside agreed time frame

Time-managed or inventory-managed assortment change

Assortment change can be done inventory-managed or time-managed.

Inventory-managed assortment change means that outgoing products are sold until inventory is at a low level or sold out and then sales of the new product starts.

In the case of inventory-managed assortment change, new products will replace an outgoing item and / or take over its place in the shelf – link / product connection is used. Sales start will depend on inventory and sales on outgoing item. The supplier and the retail chain must agree which stocks are included and calculate the date of the transition. Campaigns or other steps to make the change can be agreed. It is normal to set a final deadline for the delivery of the outgoing item.

Inventory-managed assortment change significantly reduces the risk of empty shelves and losses throughout the value chain and should be chosen if possible.

Optimal inventory-managed assortment change requires close collaboration between supplier and individual wholesaler, including dialogue on inventories and sales development. It will not be pre-orders from wholesaler in U-3 if inventory-managed in-phase is used. Order and startup are bilaterally agreed.

Time-managed assortment change implies that a date for the start of sale of products is set. Time-managed assortment change is selected when inventory-managed is not optimal, eg by phasing in products that receive heavy sales support or where the physical attributes of the product require rebuilding of shelves. With time-managed in-phase, relevant wholesale warehouses and stores must be filled up at the same time. The volume for this is significant and must be calculated separately – referred to as «pipeline fill»

News to be distributed in several trading chains is launched in one of the industry’s joint launch time frames.

Forecast and delivery confirmation (A4 in timeline)

In the case of inventory-managed in-phasing, the replacement product will most often have the same sales volume and profile as the outgoing product. There will normally be no need for own forecasts but close dialogue about in-phasing time.

With time-managed in-phasing, the forecast is divided into three and determined by the supplier:

1. Pipeline fill
   Calculation based on customer information about listing / number of locations (warehouse and shelves) and amount per location cf. timeline A3. 2.

2. Consumer purchases
   Expressed as the number of Stock Keeping Units (SKU) per week given listing.

3. Campaigns
   Retail chains wishing to carry out campaigns on new products follow the retail chain’s regular deadlines regarding. script, forecast / pre-order.

Supplier must confirm delivery capacity in U-6.

Tradesolution has developed a portal for the exchange of sales forecasts between supplier and distributor, initially for new launches and assortment changes.

REMA and COOP use this solution, while Norgesgruppen / ASKO uses its own supplier portal.

Example of screenshot from the forecast portal

Assortment changes outside agreed change time frame

If needed, changes outside of agreed change time frame should be followed as far as practicable, following these standard timelines and processes.

Changes are agreed bilaterally and should not normally result in physical changes of shop shelves.

Changes of pure technical nature, such as changed brand requirements, minor adjustments to packaging may be done by simplified administrative processing, agreed bilaterally.

Ordering and delivery

The process is generic and describes the following points:

• Order from distributor and delivery to retailer
• Communication and data exchange including service level
• Order routine and data exchange for products with short shelf life
• Forecast and deadlines

The supplier and the retail chain shall keep each other updated in all circumstances that may be relevant for successful assortment change.

Sales and inventory data are made available as soon as they can be communicated.

Target measures

Service Level – for wholesaler and retailer – are measured and exchanged.
For definition of service level refer to Service level – Purpose, types of target measures and assumptions with any clarifications in the retail chain / supplier agreement.

In case of significant deviations in service levels, assortment coding and forecasts are therefore natural reference points.

Product images and control measurements

There are defined deadlines for submission of products to Tradesolution for photography and control measurement. This sub process contains the following points:

• Product images in Tradesolution’s MediaStore
• Submission of products for control measurement at EPD Checkpoint

Submission of products for control measurement at EPD Checkpoint

Deadline for submission of a control measurement product at EPD Checkpoint / Tradesolution is Friday in U-3 (Timeline A8).

See process description at: www.tradesolution.no
Current deadlines are available in section for downloads.

Process

Plan and prepare for a production

This sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant in planning and preparation for a production of a product to be sold in the retail trade.

In addition to the finished product, raw materials and other input factors included in the finished product are also included, as well as packaging, load carriers / pallets used for transportation and storage of the finished product.

The areas described are:

• Shelf life requirements and possible use of dynamic shelf life
• Requirements for pallets planned for palletization of manufactured products
• Requirements for the packaging as planned to be used on manufactured products
• Traceability requirements for raw materials and input factors planned to be used in production

Determine total shelf life of a product and requirements for labelling this

The responsibility for determining type of shelf life labelling and total shelf life lies with the manufacturer. The shelf life is calculated from the time the product is ready for sales, for example from after the product has been matured and checked.

The actual shelf life of the product is affected by a variety of conditions, primarily the properties of the raw material and the external impact.
The manufacturers are encouraged to assess whether dynamic shelf life labelling can be practiced.
This means that total shelf life can be expanded when conditions allows for this to be done.
The number of days marked on a product may therefore be more than the number of shelf life on selected products.
According to the Mattilsynet (Norwegian Food Safety Authority), the use of dynamic shelf life is within the current regulations.

Labelling
The packaging (Consumer Units (CU) and Stock Keeping Units (SKU)) shall be labelled according to the manufacturer’s choice of type of shelf life and total shelf life.

Valid pallets

This is an animation that show what pallets are valid for distribution.

Requirements specifications can be downloaded here:

Requirements for approved EUR-pallets
Specification for reusable 1/1 plastic pallet
Specification for reusable 1/2 plastic pallet
Requirements specification for reusable 1/3 plastic pallet (from NLP)
Specification for reusable 1/4 plastic pallet
Requirements Specification reusable 1/2 wooden pallet
Requirements specification for 1/3 and 1/2 disposable cardboard pallet

Guidelines and routines for tracking, recall and withdrawal

In its framework, STAND has defined guidelines, recommendations and best practices for how products should be marketed in the distribution chain, and how information on this should be exchanged between the parties.

Central to this is the consideration of the consumer and his expectation for safe food.

The guidelines for tracking, recall and withdrawal do not define food quality requirements, but describe what procedures and processes the industry has established to mitigate any unwanted effects should an incident or crisis occur in a product.

Best practices

The guidelines describe best practices in this area.
By following STAND’s framework, the guidelines will be achievable for all parties involved.

Some important prerequisites for best practice.

• Routines and processes must be simple, predictable and intuitive
• Products and deliveries / load carriers must be labeled in a unified, standardized and correct way so that they can be traced through the value chain.
• Product information must be registered in the Tradesolution EPD
• Detailed tracking information must be exchanged digitally between the parties and follow the products through the value chain.
• Action must be taken quickly when an incident or crisis occurs

By ensuring that a total industry complies with STAND’s framework, consumers’ demands and expectations for safe food are fully met.

Objective of the guidelines

The guidelines are aimed at “Contribute to meet consumers’ expectations for safe products”.

Target Audience:

• Anyone who may or will be involved in any recall or withdrawal
• Everyone involved in the production or labeling of products and packaging covered by the guidelines

Products / areas to which the guidelines apply:

• Recommended for food and non-food products, except pharmaceuticals
• Other inputs, plants, animals or foodstuffs
• Materials and articles that are intended to come into contact with, or may affect, inputs or foodstuffs.

Medicines are exempt from the guidelines. Here we refer to separate regulations, not described here.

Certain types of food may be subject to additional regulatory requirements beyond what is described here. An example is the EU’s new tobacco directive (EU 2014/40) which make the requirements for traceability of tobacco products more stringent, but is not described here.

Requirements for tracking information and labeling

The main purpose of the tracking information is to lay the groundwork for effective blocking, withdrawal or recall of products.

Central tracking information is:

• GTIN (Global Trade Item Number) – Unique identification of products
• GLN (Global Location Number) – Unique identification of trading parties, pick-up points, delivery points etc.
• SSCC (Serial Shipping Container Code) – Unique identification of load carriers / pallets
• Batch / lot number – A unique batch or lot number defined by supplier / manufacturer
• Shelf life – Either Best Before date or Last Consumption Date

It is a requirement that the products are labeled to enable tracking.

The marking must be affixed to the product packaging and legible.

The following applies to finished goods traded between supplier and distributor / retailer:

Information to be marked:

• The name of the supplier
• Product name/description
• Product number identified with a GTIN.
• Best before date / last day of consumption date, if required
• Batch / Lot number, if required

Load carrier (for example pallet) shall be marked with SSCC.

The sender must in his system have an overview of which recipient the product was sent to, and also the recipient must have an overview of which sender the product was received from. Both sender and recipient must be identified with GLN.

Sender shall in his system register:

• Quantity sent
• Shipping Date
• Reception date (if known)

Recipient shall in his system register:

• Quantity received
• Shipping date (if known)
• Reception Date

The following applies to raw materials and other inputs:

• GTIN should be used for identification of inputs / raw material, if available
• GLN should be used for identification of sender / suppliers, if available

More about tracking information and how the product can be tracked in the value chain is described here Recommended traceability methods in the value chain.

Palletization / Storage

This sub process describes the requirements, recommendations and guidelines STAND has on how pallets are to be built and labelled for optimal transport and storage through the value chain.

The areas described are:

• Valid pallet types and the requirements made for these
• Placement of Stock Keeping Unit (SKU) on pallet, and stacking pattern
• Use of intermediate pallet sheets
• Requirements for plastic wrap for securing pallet through the value chain
• Product label on Distribution Unit (DU)
  • Content, and which informations that should be in the bar code on the label
  • Placement
  • Bar code requirements for labelling with GS1-128
• Traceability options

Placement of Stock Keeping Unit (SKU) on pallet

It is a prerequisite for maintaining strength, that Stock Keeping Units (SKU) are placed within the edges of the pallet with a small margin.
Devices placed on or outside the edge can cause damage with subsequent reduced carrying capacity / risk of injury.

The pallet area should be utilized as best as possible with products. By following the Modular system optimal use of the pallet is ensured and reduces the risk of the load shifting during transport.

Overhang is not accepted.

Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)

The purpose of a standard for labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU) with subsequent electronic data interchange (EDI) is to:

• Achieve an efficient flow of products from manufacturer to consumer
• Ensure traceability through the value chain, which is important in case an event or crisis occurs which requires a recall or withdrawal of the product

The basis for this is the labelling of each Distribution Unit (DU) with a unique SSCC.

This code is the main key in the electronic Despatch Advice and is linked to information about which GTIN which the Distribution Unit (DU) consists of, the number of Stock Keeping Units (SKU) batch / lot number and shelf life information if applicable.

SSCC is the most important key for traceability of Distributions Units (DU), see Recommended way to track and trace a product in the value chain.

For that reason SSCC shall not be reused until after a minimum of 6 years.

Recommended way to track and trace a product in the value chain

Efficiency and traceability are achieved primarily through:

• Synchronization of product information between the various parts in the value chain.
  The purpose is for all players to obtain correct and coherent product information about the products. Between suppliers and retail chains in the Norwegian groceries sector the EPD database is used for the registration, quality assurance and distribution of product information.

• Electronic Data Interchange (EDI) between the actors.
  The purpose is to reduce manual operations and reduce lead time in the value chain. The most widely used EDI messages are order, order confirmation, Despatch Advice and invoice.

• Standardized labelling of outer packaging.
  The purpose is to contribute to faster and more efficient shipping, distribution and receipt of the products. A common labelling concept for the grocery industry is used here; GS1-128.

To ensure rational product and information flow in the distribution chain, STAND recommends a uniform labelling of Stock Keeping Units (SKU) and Distribution Units (DU).
This simplifies the labelling of the manufacturer / supplier, shipment by shipper / freight forwarders and merchandise at distributor / store.

This labelling concept also applies to types of transport units other than pallets.

For fish and fish products, the following applies:
STAND has decided to refer to Norwegian Standard NS17099:2020 “Information technology — Fishery and aquaculture products — Requirements for labelling of distribution units and pallets in the trade of fishery and aquaculture products” for products that fall under this category. This standard replaces todays NS9405: 2014 “Fish and fish products. Requirements for labelling of distribution units and pallets in the trade of fish and fish products», and is valid as from 30. September 2020.

It can be ordered from Standard Norway.

Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label

The standard differs on different types of pallets depending on the content.

Only Standard pallet and Promotional Unit can provide a clear labelling of product information that applies to the entire pallet.

Standard pallet
A Distribution Unit (DU) containing the same product (same GTIN) with fixed count of Stock Keeping Units (SKU) and where labelling of unique product information on the Distribution Unit (DU) is possible.

It is recommended that a Standard pallet only contain Stock Keeping Units (SKU) with the same batch / lot number and shelf life date.

There are two different types of Standard pallet:

• Standard pallet with height 120 cm
• Standard pallet with height 60 cm (Standard Pallet – Low)

Standard pallet – Low is used for low-frequency products and for products with short shelf life.

A product can only be used on one type of Standard pallet, either 120 cm height or 60 cm height.

Standard pallet with height 120 cm

 

Standard pallet with height 60 cm (Standard pallet – Low)

 

 

Standard pallet shall be labelled with product and transport information.

Since product information and transportation information are usually known at different times, the practical solution is to label the device with two different labels:

1. Product information label (incl. SSCC)
2. Label with transport information

 

Product information on the GS1 product label for Standard pallet

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Standard pallet in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Standard pallet must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 02 must be used. The count of Stock Keeping Units (SKU) is also required on the Distribution Unit (DU) using GS1-128 AI 37
• The Distribution Unit’s (DU) own unique GTIN can also be used, using GS1-128 AI 01.

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label. Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number.
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the pallet have the same batch / lot number, this is indicated on the label in human readable text and bar code. If the pallet contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure products. Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
Shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
Must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked (Kan ikke stables).

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

 

Product labelling on Standard pallet

Overview of product information that shall or may be labelled on Standard pallet:
Information	Human readable text	GS1-128 (bar code)	AI	Format
SSCC (License Plate)1)	Must be labelled	Must be labelled	00	n2 + n18
GTIN for the Distribution Unit (DU)2)	Can be labelled	Can be labelled	01	n2 + n14
GTIN for the contained Stock Keeping Units (SKU)	Must be labelled	Must be labelled	02	n2 + n14
Count of Stock Keeping Units (SKU) on the DU	Must be marked except when DU is defined as an SKU	Must be marked except when DU is defined as an SKU	37	n2 + n..8
Product name	Must be labelled	Not labelled
Batch / lot number3)	Must be labelled	Must be labelled	10	n2 + an..20
Best before date4)	Must be labelled if Consumer Unit (CU) has printed best before date	Must be labelled if Consumer Unit (CU) has printed best before date	15	n2 + n6
Net weight	Must be labelled for products of variable measure	Must be labelled for products of variable measure	3103	n4 + n6
Gross weight	Must be labelled	Can be labelled	3300	n4 + n6
Max. top load	Must be labelled	Not labelled
Temperature requirements	Must be labelled if the product has temperature requirements	Not labelled
1) SSCC shall be indicated on the product label but permitted on both labels provided that the same number is used. 2) Can be used in a case for a transitional period. 3) If Batch / Lot No. is omitted on the Stock Keeping Unit (SKU), or it is different Batch / Lot No. on the Stock Keeping Units (SKU) this should not be labelled on the Distribution Unit (DU). 4) Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

 

Example on the GS1 product label for Standard pallet

 

 

Promotional Unit

A Unit defined as a Stock Keeping Unit (SKU) containing a fixed number of Consumer Unit (CU), intended for display in stores.

Promotional Unit can be 1/1 pallet, 1/2 pallet or 1/3 pallet.

Each Promotional Unit has its own load carrier.

Promotional Unit consisting of 1/2 pallet or 1/3 pallet are placed on a slave pallet. This constitutes a transport unit.

If slave pallet is omitted, this must be agreed bilaterally. For example, for 1/2 pallets with good stability, they can be tied together and exclude the slave pallet. This allows for better use of the pallet by increasing the Promotional Unit, thus allowing more items on the pallet.

 

Promotional Units are labelled with two levels of SSCC:

• At the lowest level is labelled with Product label for Promotional Unit as a Stock Keeping Unit (SKU) with the addition of SSCC. The product label is labelled on each Promotional Unit.
• The whole Promotional Unit is labelled with Standard shipping label for the groceries sector. If the Promotional Unit is a 1/1 pallet, this is labelled as a Standard pallet.

Labelling of Promotional Units provides increased traceability in the value chain

 

Product information on the GS1 product label for Promotional Unit

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Promotional Unit in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Promotional Unit must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 01 must be used

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label.  Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the Distribution Unit (DU) have the same batch / lot number, this is indicated on the label in plain text and bar code. If the Distribution Unit (DU) contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Consumer Unit (CU). Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure Stock Keeping Units (SKU). Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked.

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

 

Product labelling on Promotional Unit 

Overview of labelling of product information that may or may not be labelled on Promotional Unit:
Information	Human readable text	GS1-128 (bar code)	AI	Format
SSCC (License Plate)	Must be labelled	Must be labelled	00	n2 + n18
GTIN for Stock Keeping Unit (SKU)	Must be labelled	Must be labelled	01	n2 + n14
Product name	Must be labelled	Not labelled
Batch / lot number1)	Must be labelled	Must be labelled	10	n2 + an..20
Best before date2)	Must be labelled if Consumer Unit (CU) has printed best before date	Must be labelled if Consumer Unit (CU) has printed best before date	15	n2 + n6
Temperature requirements	Must be labelled if the product has temperature requirements	Not labelled
Supplier’s item number	Must be labelled	Not labelled
1) If Batch / Lot No. is omitted on the Stock Keeping Unit (SKU), or it is different Batch / Lot No. on the Stock Keeping Units (SKU) this should not be labelled on the Distribution Unit (DU). 2) Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

 

Example of Stock Keeping Unit (SKU) label with SSCC for Promotional Unit

 

Units where product information can not be entered on their own label

Mixed pallet
Two variants of Mixed pallets are described; with and without intermediate pallet.
On Mixed pallet it is not possible to enter product information on its own label.

Mixed pallet without intermediate pallet:
Pallet consisting of several different products.

Mixed pallet with intermediate pallet:
Pallet consisting of several different products, where each product is stacked in one or more layers, and where each different product is separated by an intermediate pallet.

The choice of type of mixed pallet depends, among other things, on handling costs, transport / environmental costs and storage technology and must be agreed bilaterally between the parties.
Packaging and stability of the Stock Keeping Unit (SKU) must be considered when choosing type of a Mixed pallet.

If intermediate pallet(s) are used, it shall always be ordered the amount of Stock Keeping Units (SKU) to complete a layer.

Mixed pallet (both with and without intermediate pallet) is labelled with Standard shipping label for Norwegian grocery sector.

 

Customer packed pallet

When a supplier assembles products for delivery to the final recipient, the products are packaged and labelled with SSCC at two packaging levels.

Customer packed units are labelled for delivery to the end-user and the Distribution Unit (DU) is labelled for delivery to the transit warehouse.

On Customer packed units it is not possible to enter product information on the Distribution Unit (DU) label.

 

A customer-packed pallet can be Customer packed unit – multiple route, multiple customers, Customer packed unit – single route, multiple customers, or Customer packed unit – single customer.

• Customer packed unit – multiple route, multiple customers is a unit of products for two or more end recipients that will be split in transit storage.
• Customer packed unit – single route, multiple customer is a unit of products for two or more end recipients on the same route or transport.
• Customer packed unit – single customer is a unit of products that are intended for only one end recipient.

This Customer packed units does not need to have its own load carrier and is being loaded on a standardized transport unit (for example, an EUR pallet).

Customer packed unit – multiple route, multiple customers and Customer packed unit – single route, multiple customer is stacked in columns per. end receiver.

Customer packed unit – multiple route, multiple customers is split after products receipt in the transit warehouse, and the individual Customer packed unit is forwarded to the final recipient. A prerequisite is that all Customer packed units located on one Distribution Unit (DU) are destined for the same transit warehouse.

Guidelines for labels on Distribution Units (DU)

Placement of labels on pallet
Two types of labels shall be used; label for product information and label for transport information.

• The minimum requirement is that the pallet should be labelled on two sides with both label types; one of the short sides of the pallet and the right hand long side (seen from the short side).
• Product and transport label must be on the same side of the pallet.
• When multiple labels are used on the same side of the pallet, the labels should be placed underneath each other. The label that contains SSCC placed at the bottom.
• The labels should be placed so that the bottom of the lowest bar code should be at least 400 mm above the floor, and the top of the uppermost bar code should not be more than 800 mm above the floor.
• The label should be placed at least 50 mm from the vertical edge.
• For pallets lower than 400 mm the labels should be placed as high as possible.
• If all information is known at the time the pallet is labelled and there is space on the label, all information can be labelled on one single label.
• To ensure automatic reading of the bar codes Promotional Units, Customer packed pallet and Mixed pallet should only the transport label on the transport unit be readable
• Product label on Standard pallet with height 60 cm (Standard pallet – Low) should be placed as high as possible.

Identical information
Same information (GS1-128 AI) shall only appear once on the product and transport label.
This means in practice that the same information can not be repeated on the same label or that the same information may appear on multiple labels on the device (pallet).
The exception is SSCC which is allowed on both labels if it is an identical number used.

Size and design of the labels
The following recommendation applies:

• The width of the label should be 105 mm or 148 mm
• The height of the label may vary

Recommended formats are:

• A5 (148mm x 210mm)
• A6 (105mm x 148mm)
• 105 mm x 192 mm

Quality of labels

• It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit
• It is a requirement that the quality of GS1-128 bar codes minimum meets print quality with “Grade C” according to Standard ISO / IEC 15416.
  To achieve “Grade C” when reading, “Grade B” or better by printing is recommended
• When affixing the labels, it is important to ensure that the bars in the GS1-128 symbol are correct and unbroken (avoid “wrinkling” on the label).

Logging traceability information

This sub process describes the requirements, recommendations and guidelines that STAND has for raw materials, input factors, packaging and finished products traded in the retail trade.

The areas described are:

• What is traceability
• Which product areas are covered by traceability requirements
• Which traceability requirements apply
• Which traceability information should be registered
• Traceability options

Product tracking requirements

The legislation requires that each company must have systems to document which products are purchased from each supplier and which customer has purchased the company’s finished products.

This also includes raw materials and other input that are covered by the legislation.

There is no requirement in the legislation for which type of systems to be used for this.

Businesses can practice more comprehensive tracking systems than the minimum regulatory requirements require, but this is either based on self-imposed requirements or agreements with, and orders from the contracting parties.

Tracking means being able to follow the physical flow of goods. This is often referred to as chain traceability, and assumes that all parties meet the requirements and follow the guidelines for tracking.

Tracking takes into account the legal requirements for all parties to be able to trace their products one step forward and one step back in the value chain.

Tracking one step forward:

This means to the address the products are delivered to.

An invoice system containing information about item number / item name, customer number / customer name and invoice date is sufficient to be able to trace one step forward in the value chain.

If the company is using batch/lot numbers for their products, this should be included in the invoice, despatch advice and the like, or linked directly to the company’s own systems.

Tracking one step backward:

This means the address from which the products are delivered.

The company must keep a log of received products describing which products were purchased from whom and in which quantitiy, and date.

If the addresses for where products are delivered from or delivered to are not in accordance with the legal ownership of the products and the invoice process, this should be agreed separately between the parties.

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Effektive lanseringer er nøkkelen til bransjevekst EN

Effektive lanseringer er nøkkelen til bransjevekst

Rammeverket «STAND011 Effektive lanseringer», som ble etablert i 2013, bidrar til å opprettholde varetrykk i butikk, redusere matsvinn og fjerne unødvendige kostnader. – I et flatt dagligvaremarked er rammeverket en viktig nøkkel til vekst, men vi er avhengige av at alle parter bruker det riktig, sier Verdikjededirektør i DLF, Thomas Weihe.

I 2012 tok Dagligvareleverandørenes forening (DLF) initiativ til en workshop med deltagere fra hele verdikjeden i dagligvarebransjen. Målsettingen var å identifisere årsaker til bransjens dårlige servicegrad. Etter en gjennomgang viste det seg at gjennomføringsevnen rundt nylanseringer var den største utfordringen, noe som ga en servicegrad på bare 80 prosent mot et ønske om 97 prosent. Workshopen konkluderte med at Standardiseringsutvalget for Norsk Dagligvarebransje (STAND) skulle kartlegge hvordan gjennomføring av nylanseringene kunne forbedres.

STAND etablerte deretter et prosjekt som skulle følge opp dette oppdraget. Verdikjededirektør i Dagligvareleverandørenes forening (DLF), Thomas Weihe, ble valgt som prosjektleder i gruppen, som ellers besto av representanter fra Nortura, Nestlé, Ringnes, Cederroth, Fjordland, Mars, COOP, ICA, REMA og Norgesgruppen/ASKO.

– Resultatet ble lansert i juni 2013, da vi etablerte et eget standardisert prognoseskjema for å forenkle utvekslingen av viktig produktinformasjon mellom leverandør og kjede. Dette skulle i første omgang sikre bedre forutsigbarhet knyttet til lanseringsvolum, og i starten fokuserte vi kun på nylanseringer, forteller Thomas Weihe.

I begynnelsen utgjorde standarden et felles avtalt rammeverk som beskriver avtalte aktiviteter, prosesser og tidsfrister. Basert på evalueringer ble standarden videreutviklet i august 2015 til også å omfatte sortimentsendringer. Samtidig ble det definert to ulike typer innfasing av varer i butikk: tidsstyrt- eller beholdningsstyrt innfasing.

Prognoseportal

Dagligvarebransjens felleseide selskap, Tradesolution, ble involvert i arbeidet med å ytterligere forbedre informasjonsutvekslingen. En prognoseportal ble innført mai 2017 som en videreføring av prognoseskjemaet – en ny plattform der kjedene og leverandørene utveksler bedre kvalitetssikret produktinformasjon på en enklere måte. Prognoseportalen er koblet til andre informasjonskilder og sammenstiller informasjon om blant annet produktdata, antall butikker, sortimentskoder og prognostisert salgsvolum.

– STAND evaluerer fortløpende effektene av å bruke standarden, og vi har nå et godt rammeverk på plass som skal bidra til fulle butikkhyller, fjerne unødvendig kostnader og bedre miljønytten med tanke både på transport og matsvinn. Resultatene avhenger av at dette blir brukt riktig, og her har bransjen fortsatt forbedringspotensial. I et flatt dagligvaremarked er dette en viktig nøkkel til videre vekst, sier Thomas Weihe.

Fleksibilitet nøkkelen til suksess

Direktør Operativ Vareforsyning i TINE, Julien Kerob, har jobbet med vareforsyning i dagligvarebransjen i Norge de siste 6 årene. Han mener STAND011 standarden har gjort hverdagen for leverandørene lettere og mer forutsigbar.

– Dette er nå en tydelig prosess som forteller hvem som skal gjøre hva rundt lanseringer, slik at varene skal komme på markedet smertefritt. Dette er viktig fordi det er enkelt å bomme, enten man kommer for sent eller lanserer produkter som ikke fungerer. Det er essensielt å ha god dialog i prosessen, med tilbakemeldinger og ryddig ansvarsfordeling. Det setter STAND011 rammene for i dag, sier Kerob.

– Det beste med hele standarden mener jeg er innføring av beholdningsstyrt innfasing, og at det er noe fleksibilitet rundt lanseringsvinduene når det kun er snakk om sortimentsjusteringer. Det er nemlig viktig at produktene blir solgt ut av hyllen slik at man ikke må ta tilbake og kaste tonnevis med mat. Dette har etter min mening vært en modig og riktig avgjørelse. Når flere får bedre kunnskap om rammeverket, vil effektiviteten i dagligvarebransjen øke, sier Julien Kerob i TINE.

Bedre prognoser er viktig

Innkjøpsdirektør i REMA Distribusjon AS, Iver Ludvig Langseth, mener STAND011 har gjort mye for å effektivisere produktlanseringer. Oppmerksomheten rundt selve prosessen er noe av det viktigste rammeverket har skapt, mener Langseth.

– Å ha innsyn i alle deler av lanseringer, helt fra produksjonsstadiet i den ene enden til butikkhyllene i den andre, er viktig for alle parter. Når alle ledd på leverandørsiden og kjedesiden forstår hva de andre gjør i prosessen, forenkler dette lanseringene og gjør dem mer forutsigbare, sier Langseth.

Jobben med å tilpasse seg STAND011 er ikke over for bransjen, mener innkjøpsdirektøren.

– Vi trenger fortsatt kvalitetsforbedring på grunndata, og målestasjonen er et hjelpemiddel i så henseende. Fokus på at produkter kommer til målestasjonen i tide vil være til hjelp for alle, og vil bety at vi får korrigert alle data før varene er i salg, sier Langseth.

– Utover bedre grunndata har vi en ambisjon om at kjede og leverandører samarbeider bedre rundt prognose på nye varer. Bedre prognose vil bety riktigere varetrykk i butikk, fornuftig spredning av produkter rundt i landet, samt mindre matsvinn og unødvendig transport. Å kvitte seg med barrierer som dette vil ta STAND011 enda ett steg videre, avslutter Iver Ludvig Langseth i REMA Distribusjon AS.

 

(This story was published 25.9.2018)

313 Routine when registering an incident or crisis, in the Tradesolution ReCall portal

Routine when registering an incident or crisis, in the Tradesolution ReCall portal

1 Register a new case

The product in question must be identified with a GTIN.

All product variants / packaging levels the product is included in must be registered.

2 Determine severity and health hazards

The incident should be graded based on the following health hazards:

• Causes health hazards
• Possible health hazards
• No health hazards

Different health risks entail different actions.

The supplier must assess whether it is necessary to inform Mattilsynet (the Norwegian Food Safety Authority) about the incident and consider possible alternatives with the parties involved.

The following actions are relevant:

• Blocking

This means that the product will be blocked pending further investigations. A blocking should trigger an activity with the distributor / retailer to prevent the product from reaching the consumer. A blocked product causes the product to be stopped at the POS (Point of Sale).

• Recall

Recall is the procedure initiated when the product may have reached the consumer.
There is a potential high risk that the products may be hazardous to health.
It is crucial for the company that the recall is made known to the public. If the consumer is informed, it is important that the supplier has the capacity to handle any customer inquiries.

According to Matloven (Food Law), the operators have a notification requirement.

• Withdrawal

Withdrawal means that the product is withdrawn from the distribution chain / store. The purpose is to prevent products from reaching the consumer.
Withdrawal implies that consumers do not need to be notified.

In some cases, the product can have reached the consumer, and still being withdrawn and not recalled. If this is the case, it is assumed that the product does not entail any kind of health hazard, and that it applies only to a small quantity.

• Other handling

In some cases, a supplier wants to provide information about a product to the parties in the value chain, for instance linked to reputation. This can be instructions on various measures the supplier wants the trading partner to take without causing the product to be blocked, recalled or withdrawn.

3 Notify affected parties / recipients

All parties affected by the incident shall be notified. All information pertaining to the case must be registered and follow the case until it is closed.

Mattilsynet (The Norwegian Food Safety Authority) must be notified if the incident is classified as a health hazard and that a recall is carried out.

4 Register distribution and what to do with the product

It must be registered whether the product is distributed through a wholesaler, directly to a retailer or possibly a combination.

It must be clearly described and agreed how the products are to be handled and who is responsible for this.

Examples of handling:

• Distributor / retailer throws the product on site
• The product is quarantined / temporarily blocked pending further investigations
• The product is disposed at an approved waste management facility
• The product is returned to the distributor and further on to the supplier
• Consumer should throw or return the product
• The product can be given away

In cases where the product is to be disposed, this must be done at an approved waste management facility, and without any risk of contamination.

5 Register tracking information for affected batches / lots

All relevant tracking information for the product must be provided.

This includes

• All expiry dates
• Batch / lot number for affected batches / lots
• SSCC codes for the load carriers (pallets) this product is distributed on through the value chain

Correct labelling, and that this information has previously been sent in the EDI Despatch Advice, provides an accurate identification of the affected batches / lots and allows for a limited (surgical) recall / withdrawal.

It is also encouraged to take pictures of the product so that any consumer can more easily identify which product the incident applies to, and how the product is labeled.

6 Describe further actions to be taken, with press releases and other additional information

Additional information about the case may include:

• Copy of press releases
• Detailed information on the risk or hazards if eaten or used
• Information about when the product can be expected to be available again (freshly notified) in case all products are recalled / withdrawn
• Where to find additional information
• A precise description of the handling of the goods, both at distributor and retailer site

It is recommended that involved parties (supplier and customer) mutually inform each other before proceeding with information.

It is important that the authorities and the media are informed at the right time. The information required depends on the severity and extent of the incident / crisis.

7 Closing the case

The incident / crisis should be closed once it has come under control.

Information that should be communicated is:

• The time when a freshly announced product is available again
• Identification (characteristics) of a freshly reported product
• Financial conditions (settlement, credit)

312 Design and content of a Contingency Plan

Design and content of a Contingency Plan

If unwanted incidents or crises occur, it is important to be well prepared.

Possible scenarios for what might arise should be thought through and how this should be handled.

A Contingency Plan must be prepared that will allow you to cope with the situation quickly, correctly and effectively. An important part of this can be having an crisis team responsible for traceability, recall and withdrawal.

Contingency Plan

 The Contingency Plan may include the following:

• Scope, goals and target group
• Company policy on product safety
• Definition of incident and crisis
• Description of the crisis team with roles and responsibilities clearly defined for each member of the team
• A series of actions to be performed in case of an incident / crisis
• A list of important contacts – internal / external
• When to initiate a product withdrawal
• When to initiate a recall
• How internal / external communication should be organized
• Documented experience from past incidents and exercises
• Templates for internal and external communication
• Registration and evaluation of incidents

The Contingency Plan must be updated regularly and distributed to all persons involved.

Crisis Team

On the basis of the Contingency Plan, a Crisis Team must be appointed, which is managed from a central coordination point. The team will decide which actions to take. It must be clearly stated who should be the decision maker. Nothing must be done without the Crisis Team formally approving it.

The overall responsibility of the team is to organize, manage and lead:

• Managing each incident / crisis
• Development, implementation and updating of internal instructions to be followed in case of an incident / crisis
• Continuous training of people involved in product traceability in crisis management
• Regular exercises and evaluation of the measures in the plan
• Development of internal and external communication plans to be used to help manage an incident / crisis

The Crisis Team is a permanent contingency group based on the company’s management team, as far as possible cross-functional and supplemented with the necessary expertise (legal, information, sales / marketing)

The team must be known at all levels of the company. Members of the group must be able to be contacted at any time, and when necessary, alternative persons must be available to cover all roles.

Contact Lists

In order for the communication to go fast, a list of people with contact details (telephone number, mobile number, e-mail address and postal address) must be prepared in advance. This includes the Crisis Team, potential deputies, external advisers, public authorities, contacts in industry organizations, customers and the media.

Internal Contact List:
Includes internal decision makers, as well as people who have expertise and can provide support.

The list must at all times be correct and accessible to all affected persons in the company. The people in the Contact List must be able to be contacted by phone and email at any time, and be prepared to gather as a team to deal with an incident / crisis.

External Contact List:
Consists of suppliers, customers, suppliers of logistics services and IT solutions, consumers, public authorities etc. These form an external network with people who should be contactable in case of an incident / crisis.

The Crisis Team is responsible for ensuring that the External Contact List is accurate and accessible to all key personnel.

If possible, it is recommended that you print the telephone number (usually the number of the consumer contact) on the product (Consumer Unit), so that the consumer have the possibility to ask questions, make any complaints or to inform about potential product errors.

Training

All persons who may be involved in tracking and crisis management must be trained and kept up to date on changes in the preparedness. Training includes:

• Company’s procedures for traceability, IT solutions, how to access necessary data, etc.
• Instructions on how to handle incidents / crises
• The Crisis Team, participants, responsibilities and tasks
• The role of the person being trained
• Who to contact
• The importance of coordinated actions and communication in the company
• What to do and what to avoid
• How to use the documentation
• How to use the systems for product traceability and registration

Exercises

The training should include exercises for handling incidents / crises. These must be run regularly to improve the preparedness and awareness of the Crisis Team, key personnel and external contacts.

Exercises are relevant in the following areas:

• Product Traceability
• Crisis Management
• Withdrawal
• Recalls
• Handling of quarantined products

Such exercises should be:

• Regular and realistic
• Documented with a clear explanation of the context, results, showing nonconformities and corrective actions
• Based on templates, which reflect the internal technical and organizational instructions
• Performed together with the nearest trading partner in the value chain

Crisis Preparedness Checklist

The company should prepare a checklist.

The checklist can consist of the following parts:

• Crisis Team is designated with a clear description of roles and responsibilities
• Internal guidelines for handling incidents / crises with clear procedures for withdrawal and recall, incident evaluation, etc., are fully documented
• Contact Lists are documented and distributed / made available to important trading partners
• Each individual involved in incident / crisis management and product withdrawal / recall procedures understands the roles and scope of action
• Training material has been developed
• Involved persons are regularly updated
• Regular internal exercises are held to test all contingency plans and how the Crisis Team works.
• Regular exercises are held with important customers and / or adjacent trading partners in the value chain

311 Design and content of a Risk Analysis

Design and content of a Risk Analysis

Centrally in the legislation is the duty of each company to carry out a Risk Analysis of the health risks the products represent and how the company will relate to this in terms of traceability.

Risk Analysis

The purpose of the analysis is to reduce / prevent risk through

• Withdrawal of products from the market, or
• Efficient notification or recall of products from the consumer

This assumes that the parties are aware of the risks the products may pose and have a preparedness that ensures that they react quickly, correctly and effectively in unwanted incidents. A Risk Analysis should therefore be performed on new products based on an intended relevant incident, so that it can be implemented as quickly as possible should a real incident occur for the product.

The Risk Analysis consists of three elements that both the government and industry should work on in an equal way:

• Risk Assessment
• Risk Management
• Risk Communication

Risk Assessment

When assessing risk, other elements than food safety can also be included, such as products with quality defects coming out on the market, which can have major reputational and financial consequences.

Elements included in a Risk Assessment of the product are:

Type of risk

• Consumer health and safety
• Corporate reputation
• Economic aspects.

Subjective assessment of the probability of an incident occurring

• Low (rare)
• Medium (occasionally)
• High (often occurring)

Subjective assessment of consequences, especially the health, if an incident occurs

• = Low
• = Medium
• = High

The compilation and treatment of the above factors gives an assessment of the risk that the company must decide on.

When assessing risk, risk should always be evaluated based on the worst possible incident that can occur.

Risk Management

Procedures, crisis procedures and the like must be prepared. which ensures that the incident is handled in a fast, correct and efficient manner.
Based on the Risk Assessment, it is necessary to decide what actions are to be implemented for the product.

Current actions are:

Blocking

This is a type of action that can be implemented as soon as an incident has been identified, pending further investigation. A blocking should trigger an activity with the distributor / retailer to prevent the product from reaching the consumer.

Recall
Recall is the procedure initiated when the product may have reached the consumer.
There is a potential high risk that the products may be hazardous to health.
It is crucial for the company that the public is informed about the recall.
In accordance with the Matloven (Food Law), the operators have a notification requirement.

Withdrawal
Withdrawal means that the product is withdrawn from the distribution chain / store. The purpose is to prevent products from reaching the consumer.
Withdrawal implies that consumers do not need to be notified.

Risk Communication
This includes communication measures within the company, towards other parties in the value chain, the authorities, the press and the consumers. The communication must be open and correct.

Distributors have built their own systems and routines for notification of incidents and crisis situations. In this way, a uniform and effective handling of withdrawal, recall or blocking within the companies is ensured.

309 Guidelines and routines for tracking, recall and withdrawal

Guidelines and routines for tracking, recall and withdrawal

In its framework, STAND has defined guidelines, recommendations and best practices for how products should be marketed in the distribution chain, and how information on this should be exchanged between the parties.

Central to this is the consideration of the consumer and his expectation for safe food.

The guidelines for tracking, recall and withdrawal do not define food quality requirements, but describe what procedures and processes the industry has established to mitigate any unwanted effects should an incident or crisis occur in a product.

Best practices

The guidelines describe best practices in this area.
By following STAND’s framework, the guidelines will be achievable for all parties involved.

Some important prerequisites for best practice.

• Routines and processes must be simple, predictable and intuitive
• Products and deliveries / load carriers must be labeled in a unified, standardized and correct way so that they can be traced through the value chain.
• Product information must be registered in the Tradesolution EPD
• Detailed tracking information must be exchanged digitally between the parties and follow the products through the value chain.
• Action must be taken quickly when an incident or crisis occurs

By ensuring that a total industry complies with STAND’s framework, consumers’ demands and expectations for safe food are fully met.

Objective of the guidelines

The guidelines are aimed at “Contribute to meet consumers’ expectations for safe products”.

Target Audience:

• Anyone who may or will be involved in any recall or withdrawal
• Everyone involved in the production or labeling of products and packaging covered by the guidelines

Products / areas to which the guidelines apply:

• Recommended for food and non-food products, except pharmaceuticals
• Other inputs, plants, animals or foodstuffs
• Materials and articles that are intended to come into contact with, or may affect, inputs or foodstuffs.

Medicines are exempt from the guidelines. Here we refer to separate regulations, not described here.

Certain types of food may be subject to additional regulatory requirements beyond what is described here. An example is the EU’s new tobacco directive (EU 2014/40) which make the requirements for traceability of tobacco products more stringent, but is not described here.

308 Tracking

Tracking

Areas affected and covered by STAND guidelines:

• Background to the guidelines, what is the target and who is the target group
• Laws and regulations that form the basis of the guidelines
• The requirements for tracking, tracking information and labeling
• Which product areas the guidelines apply to
• Design and content of a risk analysis
• How internal recall / withdrawal preparedness procedures can be built up
• Routine when registering an incident or crisis, in the Tradesolution ReCall portal
• How a product can be traced in the value chain

The guidelines are to be understood as recommendations based on best practice.

The parties may refer to the guidelines in their commercial agreements. The guidelines will then form part of the legally binding agreements between the parties.

Any deviations from the guidelines must be specified in the commercial agreements.

The guidelines have been drawn up in collaboration with DMF Trygg Mat, and DLF LK, working group for RECALL, and are the industry’s interpretation of existing laws and regulations.

163 Actions to be performed when an incident occurs

Implementation of actions when an event occurs

If an event occurs, the supplier of the product must carry out a risk analysis as quickly as possible.

Risk Analysis
The EU directive on general product safety and food safety / traceability requires manufacturers to take precautions to avoid risk through

• withdrawal of products from the market, or
• effective notification or recall of consumer products.

This assumes that companies are familiar with the risks the products may have and have preparedness to ensure that they act quickly, correctly and efficiently in case of adverse events.
Risk assessment may also contain items other than food safety.  It is especially the risk that products with quality errors will be released to the market, which can have major financial consequences and harm the reputation of the company.
The risk analysis always takes the starting point of an intentional or real event, something unforeseen as occurring and which implies a potential risk.
The degree of risk must be determined (probability x consequence).
Procedures, contingency routines etc. must be prepared to ensure that the event is handled in a fast, correct and efficient manner. This also includes communication measures internally within the company, towards the other part of the value chain, towards authorities and consumers.
The risk analysis consists of three elements that both government and industry should work in a similar way:

1. Risk assessment
2. Risk management (withdrawal / recall)
3. Risk communication

1. Risk assessment
The elements of a risk assessment are: Product, type of risk, probability and consequences.

For products that the company distributes and sells in the value chain, the following must be considered:

• Type of risk
  • consumer health and safety
  • corporate reputation
  • economic aspects.
• The likelihood of an event occurring in most cases is a purely subjective assessment and can for example be graded
  1. = Low (rare occurrence)
  2. = Medium (occasional)
  3. = High (often occurring)
• The consequence, especially the health, is also a subjective assessment that can be graded in the same way as the probability
  1. = Low
  2. = Medium
  3. = High

Compilation and treatment of the above factors gives an assessment of the risk that the company must consider.

The supplier must do a worse-case risk assessment where the supplier considers risk of the product being used in a different way from the purpose.

2. Risk management (withdrawal / recall)
Based on the risk assessment, it must be decided what actions should be done for the product.

Examples of actions:

a) Withdrawal
Withdrawal means removing the products from the value chain distributors / store. The purpose is to prevent products reaching the consumer.

Withdrawal does not imply any kind of notification to the consumer. However, in some cases where the product may have been sold to the consumer, still only a withdrawal in the distribution chain / shop will be carried out. It is therefore assumed that the product does not cause any health hazard and that it is a small quantity.

b) Recall
Recall is the procedure that is implemented when the product may have reached the consumer.

There is a possible high risk that the products may be hazardous to health.

It is crucial for the company that the recall is made known to the public.

According to the Food Law, the actors have a duty to issue a warning.

The company must consider possible alternatives with stakeholders, including authorities, based on regulations, procedures, contingency routines and the like. It must be clearly described how the products are to be handled and who is responsible for this.

Examples of handling:

• Distributor / Retailer disposes of the product on-site
• The product is destructed at an approved waste management facility
• The product is returned to the distributor and further to the supplier
• Consumers must dispose of, or return the product

The parties must clarify who is responsible, for example, the distributor must deliver products to the supplier or the supplier must retrieve products himself at the distributor / retailer.

The supplier must also consider whether it is necessary to inform the authorities of the incident. If the consumer is informed, it is important that the supplier has the capacity to handle any customer requests.

3. Risk Communication
Open and correct information must be communicated to customers (possibly suppliers), the press and authorities.

Distributors have constructed their own systems and routines for alerting crisis situations and blocking of the products against their distribution warehouses and retailers.

This ensures a consistent and effective handling of withdrawal, recall or blocking internally within the companies.

Alarm / Notification
In case of an emergency, notification of recall or withdrawal shall be given to a point of contact agreed by the parties in advance. At the distributors, the alert can be the distributor’s quality department, asset protection department or distribution warehouse (to be agreed between supplier and customer). The point of contact should always be staffed.

Use of the RECALL portal / notification schema
In case of recall / withdrawal notification, Tradesolution’s RECALL portal or Notification schema for recall, withdrawal or blocking of a product shall be used. Notification schema will be phased out over time, at a time decided by STAND.

Here is an animation of how the ReCall portal can be used in case of a recall:

 

The RECALL-portal / notification schema can also be used in situations that do not present a health risk, but where you want to recall products with a quality issue.

All written notification to distributors / distribution warehouses must be confirmed by oral conversation.

Distributors have constructed their own systems and routines for alerting crisis situations and blocking of the products against their distribution warehouses and retailers. It is recommended that the suppliers take a thorough look at these.

Information to authorities and the media
It is recommended that interested parties (supplier and customer) mutually inform each other before proceeding with information.

It is important that authorities and media are informed at the right time. What information that is required depends on the severity and extent of the event / crisis.

Additional Information
Additional information about the case may include:

• Copy of press releases
• Further information on risks or hazards when consumed
• Information about when the product is expected to be available again (reported fit for consumption) in case all products are withdrawn
• Where to find additional information
• A precise description of the handling of the product, both at the distributor and retailer

Closure of the case
It is important that the event / crisis is terminated when it is under control. The information that should be communicated is:

• The time when the product fit for consumption is available again
• Identification (characteristics) of a product fit for consumption
• Economic conditions (settlement, crediting)

In cases where the product is to be destroyed, this must be done at an approved disposal facility, and without danger of contamination.

153 Bar code requirements for labelling with GS1-128 on Distribution Units (DU)

Bar code requirements for labelling with GS1-128 on Distribution Units (DU)

Bar code label with GS1-128 bar codes shall be done according to GS1 General Specifications Chapter 5.4.

Note in particular:

• Size factor is in the range of 50 to 94% of nominal size.
• The minimum bar code height is 32 mm.
• When labelling GTIN (AI 01 and AI 02) always use 14 digits.
  When GTIN has 13 digits, you must enter a leading 0 (ex. 07038010000065).
• For bar code labelling with GS1-128, a separator, called Function Code 1 (FNC1), is used between the individual information elements (AI’s).
  This applies except for the AI’s that have predefined fixed length.
  The following AI’s in this document have predefined length AI 00, AI 01, AI 02, AI 15.
• It is recommended to have the AI’s to be followed by FNC1 at the end of the bar code, as the FNC1 code may be omitted.
• It is important to the requirements for quiet zone (margins) to be adhered to.
  At size factor 50%, the right and left quiet zone margin is 5 mm, and at the size factor 94% the quiet zone margins are 9.4 mm.

News

New digital platform

STAND feirer 20 år:

Ny digital plattform forenkler informasjonsflyten i dagligvarebransjen

Standardiseringsutvalget for norsk dagligvarebransje (STAND) feirer 20 år med å lansere en ny informasjonsportal tilrettelagt bransjens stadig mer digitale hverdag. Den nye plattformen skal sikre mer effektiv vareflyt til nytte for forbruker, virksomheter og samfunn, og er unik i internasjonal sammenheng.

STAND inviterte nylig dagligvarebransjen til lansering av sin nye, nasjonale informasjonsportal i GS1 Norway sitt Smart Centre på Bryn. Den nye portalen blir en digital plattform for all informasjon rundt relevante standarder i dagligvarebransjen – fra produksjon til forbruker.

STAND-standardene har siden starten i 1998 vært et rammeverk som STAND anbefaler alle bransjeaktører å benytte seg av. Disse er som tidligere tilgjengelige på stand.no, men en ny portal er nå utviklet for å bli et helhetlig prosessorientert rammeverk – og skal bidra til en mer effektiv verdikjede.

Leder i STAND, Camilla Nordhagen, forteller at det etter 20 år har oppstått et behov for fornyelse. Dette har resultert i en prosess flere aktører både fra leverandør- og handelssiden av bransjen har deltatt i. Fokuset har ligget i hvem som bruker STAND-standardene, hvordan man kan forbedre kjennskap og kunnskap til STAND-standardene, samt hvordan STAND-standardene kan tilpasses dagens krav og brukere på en bedre måte. To år etter prosjektstart står portalen nå ferdig, noe Nordhagen mener utgjør et nytt kapittel for STAND.

– Den nye portalen er bygget for å øke tilgjengeligheten og gjøre det enklere å finne frem i standardene. Vi har nå en mye ryddigere presentasjon, ikke minst ved bruk av illustrasjoner, animasjonsfilmer og et mer harmonisert språk. Uansett om man produserer forpakninger eller styrer digitale varelagre skal alle involverte brukere nå få en bedre oversikt. Stand.no vil hjelpe oss på veien mot målene om en mer effektiv og bærekraftig dagligvarebransje, sier Camilla Nordhagen.

Enklere for hele verdikjeden

Tidligere måtte man hente informasjon fra ulike standarder for å finne retningslinjer for nettopp sin del av verdikjeden, en jobb som kunne være både tung og tidkrevende. Nå er all informasjon tilrettelagt den enkelte delprosess på en visuell og ryddig måte, forteller STAND-lederen.

– Den nye portalen visualiserer prosessene, og gjør det lettere for involverte å finne retningslinjene for kun deres del av verdikjeden. Den nye og logiske informasjonsflyten gjør det mulig å hente ut nyttig informasjon også fra nettbrett og smarttelefon direkte, noe mange vil spare mye tid på. En ny funksjon er søkefeltet som vil bidra til at brukeren enkelt kan søke opp ord, uttrykk og retningslinjer. Portalen vil dessuten gi en bedre forståelse for hva alle i verdikjeden gjør, noe som skaper bedre flyt for alle i dagligvarebransjen, sier Camilla Nordhagen.

– Hovedmålene med endringen er å få økt tilgjengelighet, bruk og kunnskap om STAND- standardene. Vi ser også et behov for sterkere forankring i toppledelsene rundt om, samt treffe og rekruttere nye brukere, sier Nordhagen.

– Gir raskere og rimeligere mat

Leo Swenson, logistikksjef i Mills AS, har stor tro på at den nye portalen vil gjøre logistikken lettere i dagligvarebransjen.

– Den nye nettportalen er mer prosessorientert, et oppsett som vil gjøre det lettere å finne relevant informasjon. Generelt sett er standardene både forenklende og effektiviserende, og det er lett å forholde seg til øvrige aktører i verdikjeden. Det er liten tvil om at standardene gir forbrukeren raskere og rimeligere mat, sier Leo Swenson.

Direktør marked dagligvare i ASKO, Jørgen Eskeland, mener at mange ser til Norge når det gjelder utviklingen av felles standarder for dagligvarebransjen.

– Ute i Europa lurer mange på hvordan vi har klart å samle oss om felles standarder. ”Hemmeligheten” er at vi er gode til å samhandle om logistikk i Norge, sier Eskeland.

–  I ASKO er vi blant annet opptatt av å ha fulle biler, slik at vi ikke kjører rundt med luft, og dette hjelper standardene oss med. Å sikre gode lanseringer og fulle butikkhyller er selvsagt også svært viktig. Vi trenger ikke mange nye standarder, men vi må levere bedre på de standardene vi har, og det vil den nye portalen hjelpe oss med, avslutter Jørgen Eskeland.

FAQ

Why has the website changed?

STAND wants to reach out to even more users. STAND has therefore conducted a project to make the recommended standards and guidelines easier available. This is all about making them more relevant, easier to understand, easier to live up to, but also to present them on multiple platforms and in other forms than today. The new website is designed to be an interactive tool with a greater amount of searchable information, and available on alternative platforms such as PC, laptop and mobile phone.

What’s new in STAND?

The old recommended standards and guidelines have been rewritten. They are now sliced into logical / themed parts and placed into a process-oriented structure, where they naturally belong. For users, this means that everything that relates to a particular process is now collected in one place.

Each part of the standards / guidelines are interactive where you can navigate from a high level to a more detailed level, are searchable, and can be downloaded as pdf documents.

Additionally, a set of animations has been developed. Some animations are aimed to simplify understanding of a particular process, while other animations explain overall what STAND is, what is important when you want to live up to STAND, or to give an overview of a process.

STAND is now available in English!

The new name to the full set of recommended standards and guidelines is STAND Framework.

Are there any changes to standards / guidelines after migration to the new website?

There are no changes to the meaning and understanding behind the standards / guidelines. The only change is how the standards / guidelines are presented to the user.

Do STAND’s standards / guidelines always apply to everyone?

It is strongly recommended that the recommended standards / guidelines are complied to by everyone who belongs to the STAND target group, but in order to be legally binding, the standards / guidelines must be included as part of the commercial agreements between the parties.

Where can I find the old pdf standards / guidelines?

The old standards do not exist any longer, as they have been rewritten. But you can take out PDFs with the rewritten standards / guidelines. They are published under Downloads. There is one pdf per process and subprocess. The PDFs have the same content as the website for a specific process / subprocess.

When are the dates / deadlines for launches decided, and where are they published?

Deadlines are decided in STAND in December each year. These are the deadlines that apply for the 2nd year ahead. Example. Date of launches for 2020 is decided in December 2018.

Dates for current and next year launches is published on the website under Downloads in the Process Assortment.

Is Sales pallet / Promotion pallet / Display pallet / Exposure pallet no longer part of the  recommended standards / guidelines?

They are included but have a new single name Promotional Unit.

127 Establish routines for tracking, recall and withdrawal

Establish routines for tracking, recall and withdrawal

Areas affected by, and subject to guidelines from STAND are:

• Guidelines for traceability, recall and withdrawal, and how these are legally rooted
• Requirements for traceability of products and the product areas covered by guidelines
• Requirements for traceability information and labelling
• How to develop internal contingency routines for unwanted events or crises

 

126 Tracking

Tracking includes the following sub processes:

• Establish routines for traceability, recall and withdrawal
• Recall / withdrawal of a product

Areas affected by, and subject to guidelines for STAND are:

• Background to the guidelines, what is the goal, and who is the target audience
• Laws and regulations underlying the guidelines and how they are legally rooted
• What requirements exist for traceability, traceability information and labelling, and the product areas for which the guidelines apply
• How can internal routines for recall / withdrawal be established
• What actions can be taken if an unwanted event or crisis should occur and how a product can be traced in the value chain

The guidelines are to be understood as recommendations that actors must bilaterally agree on whether to be followed or not.

135 Guidelines for return of products

Guidelines for return of products

Return of saleable, undamaged products is usually not accepted.
However, the parties may make agreements for return of products for example in connection with:

• Replacement of old product upon introduction of a new product
• Seasonal products
• Campaigns initiated by the seller
• Returns must always be agreed in advance.

130 The establishment of bilateral agreements for the assessment of shelf life

The establishment of bilateral agreements for the assessment of shelf life

The risk of food waste is related to the remaining shelf life of a product. To avoid food waste, the players in the grocery industry have agreed to exhibit flexibility in the value chain to handle minor deviations in assessment of shelf life. This is done by establish bilateral agreements.

Bilateral agreements will contribute to more flexible assessment of shelf life, thereby reducing food waste in the value chain (manufacturers, distributors, retailers), considering specific and specific conditions, such as geographical distance to customer / market, and volume of sales.

The grocery industry has defined a table for the assessment of total shelf life, based on a three-division between manufacturer, distributor and retailer / consumer. The table prepared for this applies unless otherwise agreed bilaterally.

For products with short shelf life (42 days or less), conditions such as distance to the market and volume of sales will be decisive for determining optimal assessment of shelf life.

• For products with shelf life between 17 and 42 days it is encouraged to consider establish bilateral agreements
• For products with shelf life below 17 days there shall be established bilateral agreements

How to establish bilateral agreements
The assessment of shelf life as stated in the table is the basis for the bilateral agreements.
All parties can initiate bilateral agreements based on expected potential for reduction of total food waste.

Description of how the risk will be shared should be included in the agreements.

Measuring consumed shelf life in the value chain is an instrument for securing facts and monitoring development.

Some examples of situations where it may be appropriate to establish bilateral agreements:

• Deviant date from the table

One example of reducing waste for products with short shelf life is that a supplier in the eastern part of Norway establish a bilateral agreement with a customer regarding a better date than is stated in the table for deliveries to, for example, northern part of Norway, while for example a customer in the middle and western part of Norway receives deliveries according to the table and with the possibility of deviating dates for smaller volumes for deliveries to the southern and eastern part of Norway.

• Divergence date in the beginning of the week

Products delivered at the beginning of a week is quickly reaching the distributor / distribution centre and the retailer before the weekend and is less prone to simple date deviations. Similarly, it is less appropriate to deliver products with “last day according to STAND” or with date deviations on Fridays, if they will not be received by distributor / distribution centre before Sunday evening / Monday.

• Deviant date for promotions

In advance of a promotional period, a delivery agreement with a few day date deviations may be applicable, as these products will have higher turnover than usual for the distributor / distribution centre and at retailers. To reduce the risk of increased drop by lower turnover than usual at the distributor / distribution centre and at retailer at the end of the promotional period, a better date should be provided than indicated in the table.

• Product / value chain specific assessments

Depending on the product / value chain, it may be advisable to redistribute days. For example:
Product with uneven turnover at retailers and / or a lot of waste at retailers.
Here it may be advisable to redefine days from supplier and / or distributor to retail days.
Product with steady turnover at retailers and / or a small amount of food waste.
Here it may be advisable to redefine days from retail and / or distributor to supplier.

137 Check of products at loading, receipt at warehouse, and retailer at Ex Works delivery terms

Check of products at loading, receipt at warehouse, and retailer at Ex Works delivery terms

The buyer or the party acting on behalf of the buyer shall, when the responsibility for the products has been transferred, control the quantity and possible damage to a reasonable extent.

• When loading:
  • The number of load carriers and external damage is checked, and whether an exchange or reusable pallet is used.
• Reception at distributor’s warehouse:
  • Number of load carriers, external damage, correct product, and if used
    exchange or reusable pallet.
    Date labelling and number of Stock Keeping Units (SKU) are checked when placed on a stall or pick-up place.
• Reception in store:
  • Damage that could not have been discovered when receiving the delivery at the distributor’s warehouse.

136 Transfer of responsibility for products at Ex Works delivery terms

Transfer of responsibility for products at Ex Works delivery terms

The responsibility for the products is transferred when the seller has made the product available for the buyer in accordance with the agreement.

Unless otherwise agreed, the buyer is responsible for loading of products.

The buyer is liable for any risk of loss or damage to the products from the time the products is placed at the buyer’s disposal.

131 Dispatch of customer orders related to product shelf life 

Dispatch of customer orders related to product shelf life

Transport time and delivery frequency should, if possible, be criteria that are taken into account in cases where there is different shelf life on products available at time of shipment.
«Fresher products» are delivered to distributors or customers with long distances of transport / low frequency of delivery.

123 Settlement

The process deals with settlement for deliveries.  It covers all three forms of distribution:

• Distributor deliveries
• Deliveries direct to retailer
• Deliveries via Crossdock

Settlement is based on the fact that all documentation related to the delivery is to be exchanged in electronic form (EDI).

In addition, the process describes various service level measurements that can be made to document the parties’ performance, from ordering, through delivery, until settlement has taken place.

The measurements are typically associated with:

• Correct quantity
• Correct time
• Correct documentation

Settlement includes the following sub processes:

• Invoicing
• Measurement of service level

194 Evaluation of new products

Evaluation of new products

8 weeks after sales start, the supply of new products is evaluated.
The evaluation is carried out in conjunction with the previous 2 product news time frames.

Suppliers who have performed poorly can be notified in writing of imperfect deliveries and to provide a statement describing the cause and actions to be taken.

Given continued delivery challenges (forthcoming news time frame), the supplier may be notified in writing that new products is not considered unless convincing documentation of implemented actions is handed over.

Assessment and decision on response if deviations occur are handled by the individual retail chain.

186 Order routine and data exchange for products with short shelf life

Order routine and data exchange for products with short shelf life

All new products follow common routines for filling of shelves.
For products with shelf life less than 60 days, the wholesaler order(s) will meet the fulfilment requirements and expected supplement to the store the first sales days, rarely more than 6 days.

The wholesaler will give the supplier access to data showing the number of stores per retail chain that has sales on the current item and the number of Consumer Units (CU) sold (POS), accrued and accumulated.
Data is delivered in the first 8 weeks after launch.

The supplier is expected to have high readiness for implementing any measures to ensure continuous delivery capacity.

182 Assortment changes outside agreed change time frame

Assortment changes outside agreed change time frame

If needed, changes outside of agreed change time frame should be followed as far as practicable, following these standard timelines and processes.

Changes are agreed bilaterally and should not normally result in physical changes of shop shelves.

Changes of pure technical nature, such as changed brand requirements, minor adjustments to packaging may be done by simplified administrative processing, agreed bilaterally.

167 Requirements for traceability information and labelling

Requirements for traceability information and labelling

The main purpose of tracking information is to provide a basis for effective withdrawal/recall of food and other products as a part of consumer expectations for safe products.

Traceability information also includes raw materials and other input factors used in the production of finished products, ref.

Traceability information and labelling
EU Regulation 178/2002 requires the products to be labelled to enable traceability.
The labelling must be affixed to the product packaging and be readable.

The information that shall be marked on the product:

• Supplier Name
• Item number / tradename

In addition, the sender’s system must have an overview of which recipient the products have been sent to. The recipient must have an overview of which sender the products are received from.

Information that can be labelled on the products and which will simplify the work:

• Best before date
• Expiry date
• Batch / Lot number
• Identification of load carrier (eg pallet)

In addition, it is recommended:

Sender to register:

• Amount sent
• Shipping Date
• Receipt Date (if known)

Recipient to register:

• Amount received
• Shipping Date (if known)
• Receipt Date

168 Requirements for traceability of products

Requirements for traceability of products

The law requires that each company should have systems to document which products have been purchased from the individual supplier and which customer has purchased the company’s finished products. This also includes raw materials and other input factors covered by the legislation, ref.

There is no requirement in the legislation for the types of systems to be used for this.
Traceability can be manually based in the simplest form, while others have an advanced IT system to follow up on this.

Central to the legislation is the duty of each company to undertake risk analysis over which health risks the products represent, and how the company will relate to this in terms of traceability.

Businesses can practice more comprehensive traceability systems than the minimum requirements of the law, but this is either based on self-imposed claims or agreements with, and orders from, the contracting parties.

Traceability
Traceability is based on following the physical commodity flow.
All parties should be able to track their products one step forward and one backwards.

Traceability one step forward:
Traceability one step forward means the address to which the products are delivered to.
An invoice system that contains information about item number / tradename, customer number / customer name and invoice date is sufficient to track a step forward in the value chain.

If your business has one batch concept, this should be included in the invoice, Despatch Advice or that the company’s own expedition system is directly linked to the invoice.

Traceability one step backwards:
Traceability one step backwards means the address the products are delivered from.
The company must provide a log of received products describing which products are purchased from whom and in what quantity on date.

If the addresses for where products are delivered from or delivered to are not in accordance with the legal ownership of the products and the invoice fee, this should be agreed separately between the parties.

166 Product areas covered by guidelines for traceability, recall and withdrawal

The policies include traceability for:

• commodities, plants, animals or food stuff
• materials and objects that are intended to encounter, or may affect, commodities or food stuff.

The guidelines are recommended for foods and non-food products, except for pharmaceuticals.

Areas not described in the guidelines

• Internal tracking systems
• Fodder, allergic practices and agricultural practices, including the use of GMOs
• Prevention of pollution (e.g. disinfectants)
• Development and implementation of quality assurance in a company
• Implementation of product and / or pallet labelling systems, etc.

The above areas are not described in the guidelines, but do not mean that there are no provisions or regulations for this elsewhere.

203 Send and receive invoice and invoice receipt

Send and receive invoice and invoice receipt

Send invoice

Based on the products and quantity delivered, as well as other terms of sale and delivery, the supplier produces an invoice and sends to the customer / invoice recipient.

Invoice must be sent by EDI unless otherwise agreed bilaterally.

One invoice shall only include delivery from one Despatch Advice.

At delivery terms Ex Works, one invoice will only deal with products delivered from one warehouse.

If credit note is sent, one credit note should only refer to one invoice.

Invoice must be continuously numbered, state the place of delivery, the invoice date and the name and address of the supplier and buyer. The invoice shall provide information about the product’s name, quantity and price, as well as tax and fees.

Receive invoice and send invoice receipt

If the supplier desires / needs it, it can be agreed bilaterally that the customer will send an invoice receipt to the supplier as confirmation that the customer has received an invoice.
Invoice receipt shall be sent by EDI unless otherwise agreed bilaterally.

The invoice receipt is available in two versions; simple and advanced invoice receipt. Difference is the degree of detail on content. Which version used must be bilaterally agreed.

The following content may be included:

• Code that shows how the customer has processed an invoice
  • Received and controlled
  • Received but not checked
  • Not accepted
• Error code, which shows what is wrong if the customer has entered the code = Not accepted:
  • Incorrect invoice amount in relation to invoice documentation
  • Invoice received earlier
  • GLN error in the buyer’s address field
  • No EDI agreement between the parties

One invoice receipt must cover only one invoice.

Invoice receipt can also be sent upon receipt of a credit note. Same rules as for invoice apply.

Receive invoice receipt

How the invoice receipt is used by the vendor in their internal systems is not covered by the STAND Guidelines.

164 Notification schema for recall, withdrawal or blocking

Notification schema for recall, withdrawal or blocking of a product

This is the agreed schema to be used for recall, withdrawal or blocking of a product if Tradesolution’s RECALL-portal is not being used.

The schema can be downloaded here

159 Guidelines for traceability, recall and withdrawal

Guidelines for traceability, recall and withdrawal

Guidelines have been developed for traceability, recall and withdrawal in the grocery industry.
The guidelines are to be understood as recommendations that actors must bilaterally agree on whether to be followed or not.

The guidelines are based on Norwegian and international provisions on food safety and traceability:

• Norwegian Food Manufacturing Act and Food Safety (Matloven, January 1, 2004.)
• EU Food Law (Regulation EC 178/2002, January 2002), including traceability provisions, valid from 1 January 2005.

In addition, the Product Liability Act also contains general rules on safety and liability for products (food and non-food) that are supplied in the market, and that there are special provisions for medicines that also regulate traceability requirements.

Mattilsynet (The Norwegian Food Safety Authority) has had the guidelines for review and contributed comments on relevant areas.

The guidelines are the industry’s interpretation of existing laws and regulations.
The guidelines have not been legally tested, and there is currently no legal practice in the area.
By introducing the simplest systems, the legal requirements for traceability according to the industry’s perception will be satisfied.
Some types of food may be subject to additional requirements for traceability from the authorities.

More about the legal aspects can be found in Legal aspects of guidelines for traceability, recall and withdrawal.

Goals for the guidelines
The guidelines aim to “help the actors to meet the consumer expectations for safe products».

Target group for the guidelines

• Quality assurance managers
• Supply chain / logistics managers
• Managers for factory and warehouse
• Customer and consumer services
• Legal departments
• Communications managers
• IT
• Persons responsible for implementing traceability solutions

The degree of implementation and the infrastructure a business has chosen determines what investments must be made.
The costs can be significant, but the cost of not having such a function or having inefficient systems can also be significant.

It is a common opinion in the grocery industry that the use of common guidelines and standards improves efficiency and reduces total cost in the value chain.

129 Evaluate the use of dynamic shelf life

Evaluate the use of dynamic shelf life

“Expiry date overdue” is the main reason for food waste in the value chain. A more flexible shelf life labelling throughout the year could help reduce food waste.

Shelf life is affected by several conditions that may vary. It is possible to specify increased shelf life in periods of time or for batches. This is termed as “dynamic shelf life». In practice, it means that overall shelf life can be expanded when conditions give the opportunity to do so.

The supplier should inform the customer if dynamic shelf life is applied.

According to the Mattilsynet (Norwegian Food Safety Authority), the use of dynamic shelf life within the current regulations: “It is the manufacturer who assesses and puts the shelf life of the food products. Manufacturers know the raw materials and processes used. Shelf life should be based on common and realistic conditions for transportation, storage and sales. This does not prevent manufacturers from taking into account that there may also be different external conditions for the shelf life of the foodstuffs. In practice, manufacturers often put the shelf life out of the most demanding but realistic conditions throughout the year. If the business has full control and overview of the terms, nothing stops them from choosing different shelf life throughout the year for the same product. This means the food is given a shelf life that is adapted to season, temperature and other conditions.”

More information can be found here: http://www.mattilsynet.no/mat_og_vann/merking_av_mat/generelle_krav_til_merking_av_mat/holdbarhetsmerking_paa_matvarer.2711

Examples of using dynamic shelf life that could have longer shelf life than often is the practice today:

• Different temperatures throughout the year

In order to make a realistic assessment, the producer assumes that the products are stored in normal outdoor / room temperature for a shorter period of time through the value chain, such as transshipment, stock refills in stores, consumer carts, transport from store to home and in the home (in and out of the fridge and on the kitchen table). In summer, the outdoor / room temperature is higher and thus has a greater impact on shelf life. To make a realistic assessment, it’s normal to take into account the assumptions in the summer period and determine the shelf life based on this, and the same shelf life is normally used throughout the year.

• Different shelf life based on different technology

Different companies may have different production methods and / or hygiene standards. To make a realistic assessment, the starting point is the technology that provides the shortest shelf life.

• Different shelf life of raw materials

The regulations or internal rules stipulate that raw materials that are up to x days “old” may be used at any given time in the manufacturing process. Then the shelf life is determined by using x-day-old raw material each time. This even though you often use fresher raw materials than x days.

• Different raw material quality

Raw material quality may vary naturally over a year, and in some cases this may affect shelf life. To make a realistic assessment, the raw material with the shortest shelf life is used, and normally uses the same shelf life of the finished foods throughout the year.

Dynamic shelf life and the EPD database

There is no need for any changes to the EPD database to utilize dynamic shelf life.

It is the product’s shortest shelf life during the year the supplier must register in the EPD database.

133 Determine total shelf life of a product and requirements for labelling this

Determine total shelf life of a product and requirements for labelling this

The responsibility for determining type of shelf life labelling and total shelf life lies with the manufacturer. The shelf life is calculated from the time the product is ready for sales, for example from after the product has been matured and checked.

The actual shelf life of the product is affected by a variety of conditions, primarily the properties of the raw material and the external impact.
The manufacturers are encouraged to assess whether dynamic shelf life labelling can be practiced.
This means that total shelf life can be expanded when conditions allows for this to be done.
The number of days marked on a product may therefore be more than the number of shelf life on selected products.
According to the Mattilsynet (Norwegian Food Safety Authority), the use of dynamic shelf life is within the current regulations.

Labelling
The packaging (Consumer Units (CU) and Stock Keeping Units (SKU)) shall be labelled according to the manufacturer’s choice of type of shelf life and total shelf life.

158 Examples of combined target measures

Service level is measured in %

Target measures Delivery Order – Availability

Example 1:
If 10 orders are missing 1 sales unit in one order at the time of delivery, service level is 90%.

Example 2:
If there among 10 orders is missing 1 sales unit in one order and 50 in another order at delivery time, service level is 80%.

Complete orders at the right time – Availability & Reliability

Example 1:
If one of 10 orders ordered is missing 6 sales units in one order and another order is delayed, the Complete Order service level is 80%.

Example 2:
If there are 10 orders, 2 orders are out of time, and one of the orders that are not in time is also incomplete, the service level of complete order is 80%.

The perfect order

Example 1:
If there among 10 orders are missing one sales unit on one order. Another order is delivered too late. The third order has generated a credit note, the service level is 70%.

Example 2:
If there among 10 orders is missing 1 sales unit in one order and the same order is delivered prematurely. Another order of products has errors and has generated a credit note, the service level is 80%.

157 Examples of priority target measures

Service level is measured in %

Target measures Delivery Level Quantity – Availability

If 100 sales units have been ordered and 98 sales units are delivered at first delivery, the service level is 98%.

Target measure At the right time – Reliability

If there are 10 orders placed for delivery at a specific date, the deliveries should have arrived at the specific dates / time slots and 1 of the deliveries arrive before or after the agreed date / time slot, the service level is 90%.

Target measures Correct Administration – Security

Example 1:

Out of 10 orders, 1 invoice has a price error. An invoice for another order contains items reported to the vendor with errors on arrival. The delivery on the third order is missing Despatch Advice.
These 3 errors generate 3 credit notes / deviations and service level is 70%.

Example 2:

Out of 10 orders, 1 of the orders on the invoice has a price error on a product and another item on the same invoice has an error / defect reported to the supplier.
If the errors can be corrected on a single credit note, the service level is 90%.

124 Invoicing

Invoicing

The sub process describes the requirements, recommendations and guidelines STAND has, which may be relevant for settlement for deliveries to a customer, regardless of the method of distribution.

The process is based on the fact that all documentation is exchanged by EDI.

This sub process consists of the following activities:

• Send invoice
• Receive invoice and send invoice receipt
• Receive invoice receipt

Areas affected by, and subject to guidelines from STAND are:

• How EDI is used in the retail trade in general and in the invoicing process in particular
• Requirements and content of EDI messages for
  • Invoice
  • Invoice receipt
• EDI exchange agreement
• Generic description of settlement process

113 Routine at delays

Routine at delays

In case of delay, a distinction is made between notified and unannounced. Separate routines have been established for:

• Routine of notified delays
• Routine of unannounced delays

165 How to develop internal contingency routines for unwanted events or crises

How to develop internal contingency routines for unwanted events or crises

Unwanted events or crises usually comes unexpectedly. To ensure proper handling it is important to be well prepared. The company must in advance have thought carefully about the type of events that may occur. A contingency plan must be prepared that can handle the situation in a quick, correct and efficient manner.

As part of the emergency preparedness, many companies have created their own crisis teams where each member has clearly defined tasks and responsibilities, including for traceability and possibly withdrawal or recall of the company’s products.

Contingency plan

The procedures to be used in case of a crisis must be documented through a contingency plan. The contingency plan may contain the following:

• Scope, goals and target group
• Company policy regarding product safety
• Definition of event and crisis
• Description of the crisis team with roles and responsibilities clearly defined for each member of the team
• Action sequence to be performed if an event / crisis occurs
• A list of important contacts – internal / external
• When a product withdrawal is to be put into effect
• When a recall is to be put into effect
• How to organize internal / external communication
• Documented experiences from past events and exercises
• Templates for internal and external communication
• Registration and evaluation of events

The contingency plan must be updated regularly and distributed to all involved individuals.

Crisis team

Based on the contingency plan, a crisis team must be appointed, which is directed from a central coordination point. The team must decide which measures are to be taken. It must be clearly stated who should be the decision maker. Nothing must be done without the formal approval by the crisis team.

The overall area of ​​responsibility for the team is to organize, manage and lead:

• Handling each event / crisis
• Development, implementation and updating of internal instructions to be followed if an event / crisis occurs
• Continuous training of persons involved in product traceability in crisis management
• Regular exercises and evaluation of the measures in the plan
• Development of internal and external communication plans to be used as an aid in handling an event / crisis

The crisis management team is a permanent prepared group based on the company’s management team, supplemented with necessary expertise (legal, information, sales / marketing)

The team must be known at all levels of the company. The members of the team must be able to be contacted at any time, and when necessary, appropriate alternatives must be available to cover all roles.

Contact lists

For the communication to go fast, a list of persons with contact details (phone number, mobile number, e-mail address and mailing address) must be prepared in advance. This applies to the crisis team, potential deputies, external advisors, public authorities, contacts in industry organizations, customers and the media.

Internal contact list:

This includes internal decision makers, as well as people who have expertise and can provide support. The list must be complete, updated and accessible to all affected persons in the company. The persons in the contact list must be able to be contacted by phone, mobile phone and e-mail at any time and be prepared to be assembled as a team to handle a crisis.

External Contact List:

Each company has an external interface that can consist of suppliers, customers, logistics services providers and IT solutions, consumers, public authorities, etc. These form an external network with persons to be contacted if an event / crisis occurs.

The crisis team is responsible for ensuring that the external contact list is complete, updated and accessible to all key people.

If possible, it is recommended to print the phone number (usually the consumer contact number) on the product Consumer Unit (CU), so that a consumer can call and ask questions or inform the company about a product failure or complaint.

Training

All persons who could be involved in product traceability and crisis management must be trained and kept up to date on changes in preparedness. The training includes:

• Enterprise procedures for traceability, IT solutions, how to access necessary data etc.
• Instructions for managing events / crises
• Crisis team, participants, responsibilities and tasks
• The role of the person being taught
• Who to contact
• Importance of coordinated actions and communication in the company
• What to do and what to avoid
• How to use the documentation
• How to use product tracking and registration systems

Exercises

The training should include exercises for handling events / crises. These must be run regularly to improve the readiness and awareness of the crisis management team, key staff and external contacts.

Exercises are applicable in the following areas:

• Product traceability
• Crisis management
• Withdrawal
• Recall
• Handling of products in quarantine

Such exercises should be:

• Regular and realistic
• Documented with a clear explanation of the context, the results, the deviation and the corrective actions
• Based on templates that reflect the internal technical and organizational instructions
• Performed with the closest parties in the value chain

Check list for emergency preparedness

The company should prepare a self-assessment check list to evaluate its own contingency routines in relation to what is considered best practice. ap:

Check list for emergency preparedness
Requirements / actions	Score
Event / crisis management team is designated with clear description of roles and responsibilities
Internal guidelines for handling events / crises with clear withdrawal and recall procedures, event evaluation, etc. are fully documented
Contact lists are documented and distributed
Contact lists are made available to key trading partners
Each individual involved in handling events / crises and withdrawal / recall procedures understands the roles and scope of action
Training materials are developed
Involved persons are kept regularly updated
Regular exercises are held to test all contingency plans and how the crisis team works
Regular exercises with important clients and / or adjoining parties in the value chain are held

 

An appropriate score can be based on the following example:
0: No action taken
1: Plans have been established, but work has not started
2: Implementation has started to a limited extent
3: Full implementation has started
4: The plans are fully implemented

161 Legal aspects of guidelines for traceability, recall and withdrawal

Legal aspects of guidelines for traceability, recall and withdrawal

Rules on product safety and traceability are defined in several laws and regulations.
Key to these guidelines are:

• Law of product liability of 23.12.1988
• Act on food production and food safety, etc. of 19.12.2003 Matloven (Food Law)

Product liability law applies to liability incurred by a manufacturer for damage caused by a product manufactured or put into circulation as part of his occupation, business or similar business (§1). The manufacturer is obliged to replace any damage caused by his product, which is because it does not provide the security that a user or the public could reasonably expect (§2).

Food law The purpose is to ensure health safe food and promote health, quality and consumer awareness along the entire production chain, as well as safeguarding environmentally friendly production (§1, 1st paragraph).

The legal scope of the law is all matters relating to the production, processing and distribution of raw materials and food stuff, including drinking water. The law also covers all matters relating to the production of materials and articles that are intended to come into contact with, or may affect, raw materials or food stuff. Furthermore, the law applies all use of raw materials (§2, 1st paragraph).

The law has, in Section 11, a provision on traceability in which the King may make regulations. In Ot.prp. No. 100 (2002-2003) on the Food law, it’s stated that (p.221) “The Ministry implemented the traceability requirement as provided by the EU Food Law, from the date the provision was valid in the EU (1.1.2005)».
In addition, the provision provides the legal basis for the continuation of existing traceability provisions (meat).

The food law also includes packaging as well as the food stuff themselves, while the EU Food Law does not. EU has requirements for traceability regarding packaging in its Packaging Directive Regulation EC 94/62)

Regulations on traceability of food stuff and fodder.
The regulation is valid from 1 January 2005 and addresses the business owner of food stuff and fodder businesses in all stages of production, processing and distribution. The main principle of responsibility is the same as in the EU Food Law: Each part of the value chain should be able to trace its products one point forward and one back.

IK-mat food regulation (Regulations on internal control to comply with food law)
shall ensure systematic implementation of measures to comply with food law. The regulations require inter alia: that companies should establish and implement effective routines for controlling critical points in their business. Written procedures for crisis management, withdrawal and recall should be included in the company’s internal control system.

EU Food Law (Regulation EC 178/2002) has provisions relating to traceability in Articles 13, 14, 17, 18 and 19.

The law describes traceability as: «The ability to trace and follow a food article, a fodder, an animal intended for food production or a substance that is or may be expected to be added to food or fodder throughout all stages of production, processing and distribution.»

The main principle of responsibility for traceability is that every part of the value chain should be able to trace its products one step forward and one point back.

Note: The legislative text is about the results businesses must achieve. However, they have no obligations regarding the way they achieve the results.

For updated information about laws and regulations, see:
www.mattilsynet.no
www.lovdata.no
www.regelhjelp.no

134 Table for allocation of shelf life of a product

Table for allocation of shelf life of a product

 

• For products with total shelf life of 150 days or more, the last deadline for delivery to the distributor is at least 100 days and for a retailer at least 50 days. This means that the producer receives a larger proportion of total shelf life than other parts (inequitable distribution). Seasonal products must be sold with a good shelf life for the current season.
• For products with total shelf life 90 days or less the table is in favor of ensuring the longest possible part of the shelf life of the last part of the value chain.
• For products with shelf life between 17 and 42 days it is encouraged to establish bilateral agreements for the allocation of total shelf life
• For products with shelf life under 17 days bilateral agreements shall be established for the allocation of total shelf life

Delivery terms govern the time of transfer of responsibility. Delivery Terms follow Incoterms (https://iccwbo.org/resources-for-business/incoterms-rules/).

Definition of table headings:

Total shelf life:

Total shelf life of the product in days is defined by the manufacturer.

Manufacturer:

Number of days of total shelf life available to the manufacturer.

Distributor:

Number of days of total shelf life available to the distributor until delivery to the retailer.

Retailer / Consumer:

Number of days of total shelf life available to retailer and consumer.

Total shelf life	Manufacturer	Distributor	Retailer / consumer
150	50	50	50
149	49	50	50
148	49	49	50
147	49	49	49
146	48	49	49
145	48	48	49
144	48	48	48
143	47	48	48
142	47	47	48
141	46	47	48
140	46	47	47
139	46	46	47
138	46	46	46
137	45	46	46
136	45	45	46
135	45	45	45
134	44	45	45
133	44	44	45
132	44	44	44
131	43	44	44
130	43	43	44
129	43	43	43
128	42	43	43
127	42	42	43
126	42	42	42
125	41	42	42
124	41	41	42
123	41	41	41
122	40	41	41
121	40	40	41
120	40	40	40
119	39	40	40
118	39	39	40
117	39	39	39
116	38	39	39
115	38	38	39
114	38	38	38
113	37	38	38
112	37	37	38
111	37	37	37
110	36	37	37
109	36	36	37
108	36	36	36
107	35	36	36
106	35	35	36
105	34	35	36
104	34	35	35
103	34	34	35
102	33	34	35
101	33	33	35
100	33	33	34
99	32	33	34
98	32	32	34
97	32	32	33
96	31	32	33
95	31	32	32
94	31	31	32
93	30	31	32
92	30	31	31
91	30	30	31
90	30	30	30
89	29	30	30
88	28	30	30
87	27	30	30
86	26	30	30
85	26	29	30
84	25	29	30
83	25	28	30
82	24	28	30
81	24	27	30
80	23	27	30
79	23	26	30
78	22	26	30
77	22	25	30
76	21	25	30
75	21	24	30
74	20	24	30
73	20	23	30
72	19	23	30
71	19	22	30
70	18	22	30
69	18	21	30
68	17	21	30
67	16	21	30
66	16	20	30
65	15	20	30
64	14	20	30
63	14	19	30
62	14	18	30
61	13	18	30
60	13	17	30
59	13	16	30
58	12	16	30
57	12	15	30
56	12	14	30
55	11	14	30
54	10	14	30
53	10	13	30
52	10	12	30
51	10	12	29
50	10	12	28
49	10	12	27
48	10	11	27
47	10	11	26
46	10	10	26
45	10	10	25
44	10	10	24
43	10	10	23
42	10	10	22
41	9	10	22
40	8	10	22
39	7	10	22
38	7	9	22
37	7	9	21
36	7	9	20
35	7	9	19
34	6	9	19
33	6	9	18
32	6	9	17
31	5	9	17
30	5	9	16
29	5	8	16
28	5	8	15
27	5	8	14
26	4	8	14
25	4	8	13
24	4	7	13
23	4	7	12
22	4	6	12
21	4	6	11
20	3	6	11
19	3	6	10
18	3	5	10
17	3	5	9

118 Delivery

Delivery includes the following sub processes:

• Picking, packing and labelling of delivery
• Create documentation, send and receive Despatch Advice
• Pick-up from supplier, transport to distributor / retailer
• Products receipt

115 Purchase

The process is a generic description of some elements of an ordering process.
It focuses on the interaction between supplier and distributor, or between supplier and retailer.
It does not describe internal activities of the individual player.

Order includes the following sub processes:

• Order
• Confirm order

Areas affected by, and subject to guidelines from STAND are:

• Order and order confirmation process using EDI for deliveries from supplier to distributor or retailer, and Crossdocking deliveries
• Which EDI messages to use for given forms of distribution, as well as deadlines for when to be sent
• EDI exchange agreement
• Content in the EDI messages and how to implement these for the following messages
  • Order
  • Order receipt
  • Order confirmation
• Use of bilateral agreements for distribution of shelf life, for products covered by this
• Evaluation of the delivery ability of ordered products