Home' MHD Supply Chain Solutions : MHD Jul-Aug 2016 Contents Heavy industry in Australia continues
to be an important contributor
to the country's GDP. This sector
involves complex business disciplines that
require interactions between many different
departments within a business, as well as their
partners, suppliers and customers.
One dimension of this complexity is the supply
chain, which needs to be streamlined. Therefore,
collaboration between key stakeholders is a
much needed initiative to help develop industry-
wide solutions to reduce costs, increase visibility,
improve productivity and lift the performance
levels of supply chain efficiency.
Better visibility up and
down the supply chain
OneSteel, a key player in the heavy industry,
recognised the need for better visibility of
product movement up and down the supply
chain when it was faced with the challenge
of balancing operational efficiency, inventory
accuracy and product traceability.
A long-time member of GS1, in 2012
OneSteel worked to better apply GS1 standards
to improve the delivery of product into
customers' hands and streamline the exchange
of information with third parties in its supply
chain, including wholesalers, suppliers and
logistics service providers.
The first phase of the process was to
develop and implement the new standard
product tag -- 'OneTag' across all operational
sites. The 'OneTag' label clearly shows all
the relevant product information and two
GS1 barcodes -- the GS1-128 barcode and
the GS1 DataMatrix -- with clear reference to
The objective was to make it easy for
OneSteel's customers to be able to keep track
of orders from manufacturing right through to
their door. Visibility is made possible by GS1
identifiers that are captured on a standards-
based tag with information shared and
synchronized by all trading partners.
Leveraging off the new 'OneTag' OneSteel
'practiced what it preached' by developing and
installing a comprehensive barcode scanning
system at its Sydney Bar Mill operations,
replicating an existing one at its Laverton Steel
Mill in Melbourne.
Revolutionise the industry
with GS1 standards
According to Bonnie Ryan, GS1 Australia's
industry manager, trade, transport and heavy
industry, OneSteel's initiative to identify its products
using GS1 standards is considered a major
milestone towards revolutionising the industry.
"The implementation of GS1 standards
using the 'OneTag' system allowed OneSteel
to commence collaboration with Pandrol to
streamline the supply chain, enable visibility and
traceability, improve efficiency and bring savings to
business operations and benefits to customers."
The success story with
OneSteel and Pandrol
OneSteel has a significant presence in
Australian steel as an integrated manufacturer
of steel and finished steel products and premier
manufacturer of steel long products.
Pandrol Australia is a designer, manufacturer
and supplier of cost-effective rail fastening
systems for all types of track and traffic conditions
to railroads and transit systems in Australia.
David McNeil, e-comerce manager at
OneSteel said: "At One Steel we manufacture
rod and bar products. We worked with
GS1 to standardise how we do our product
identification across a number of our business
units and it's been a very successful exercise.
"We've now got a standard tag across our
operations in Newcastle, Sydney, Melbourne,
Whyalla and our Austube Mills businesses,
all compliant with GS1 standards and our
customers are starting to really embrace using
the scanning and capability of the product tags.
"If a customer can scan a Rod and Bar
product tag they can scan tags coming from
our entire product range."
Shane Murphy, general manager
manufacturing, rod & bar at OneSteel
added: "Our operators needed to do a lot of
manual translation of tagging information.
The inconsistency in the tagging meant they
had to work harder at identifying bundles.
The new tagging system enables them to
read tags more consistently, enables better
inventory balancing, and on average we
save around ten minutes per truck load, so
it's been a huge success.
"In the area of the customer, the benefit
that we have is the traceability of the tagging
system. We're able to better understand and track
our product. We're now able to get checks and
balances against putting product on trucks so we
get it right the first time and we don't encumber
our customer with incorrect deliveries.
"A good example of the benefits of the
tagging system is its use in OneSteel's
Metalcentre business, which retains our
product tags on stocked product. When
Metalcentre staff pick out stock and scan, the
system automatically validates the material,
then retrieves the mill test certificate and
emails it to the end user."
According to Pat Mahony, plant manager
at Pandrol Australia, prior to OneSteel
implementing the new label in its warehouse,
Pandrol had to record all the separate pieces of
information from the OneSteel tag manually.
"We saw this as an opportunity to take that
technology and implement it into our incoming
materials, removing considerable amounts of
paperwork in probably one-tenth of the time it
used to take.
"Once we got talking to One Steel and it
introduced us to GS1, we realised that if we used
a standard, we could get the information easily.
We now have error-free entry of all our inbound
material and that means that people aren't
tied up trying to sort out a problem if someone
makes an incorrect transaction. We can make
sure it gets to where it has to go when it needs
to be there. One scan, all collected -- done."
For more information about GS1 standards
in the heavy industry, contact Bonnie Ryan at
GS1 Australia at email@example.com.
HEAVY INDUSTRY WELCOMES
MHD SUPPLY CHAIN SOLUTIONS --- JULY / AUGUST 2016
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