Chapter 1.2 Flashcards
Why is it important for organisations in a supply chain to use product codes?
So that the risk of ordering or delivering the wrong item is reduced
Name an advantage of using your own product coding system
The organisation can construct a code that is effective and fits with its software and the variety of items covered
Name an advantage of using a manufacturers product code systems
The same code can be shared, this can avoid potential errors and it will save time as there will be no need to interpret the manufacturers code against the organisations own code
Why may using a manufacture codes and them being recognised in the supply chain be an advantage?
It adds traceability and customer acceptability
Why may using a manufacture codes and them being recognised in the supply chain be a disadvantage?
It reveals origins allowing customers to ‘shop around’
When is a manufacturers product code important?
When spare parts are being supplied
Name an advantage of using a customer product code system
The same code can be shared
Name an disadvantage of using a customer product code system
Using the same code for other customers might be unacceptable to the customer who ‘owns’ the system
Name an advantage of using industry standard coding system
The supply chain can standardise part numbering and the same system is used by different customers and suppliers
Name a disadvantage of using industry standard coding system
Additional features of a product that could be added might not be permitted by the published structure and variants
Explain how an organisation may use multiple codes
An organisation may have a product code given to customers for ordering, and additional codes that might signify the country of origin, year, month or date of production, use-by date, supplier, quantity in a pack, storage requirements, storage location or country of use
Name 6 types of codes
- Numerical
- Alphabetical
- Alpha-numeric
- Random generated or created
- Sequential
- Structured
Stock Keeping Units (SKUs)
An identifiable item from stock. organisations may assign individual SKU numbers of their own design or use industry or company standard. Although an SKU relates to a single item, the item could be a box or a pallet load rather than an individual item
Who can the structure of product codes be designed by?
Suppliers or buyers
Can organisations create their own stock keep unit numbering system
Yes
What codes do online catalogues list?
Both - the retailer product may help the customer to determine the match to the retailers website, the Amazon code instantly identifies the unique reference used and is their SKU
Name 5 items that appear on an online search for SKU414676
- A UK wholesalers six-pack of branded cola
- Australian snack food
- UK flower seeds
- Italian desk sold in Japan
- Brazilian light fitting
What can structured codes be designed to do
To incorporate meaningful information if arranged in specific ways
Check digits
Numbers added to product codes which allow computer-based validation. These are usually created using specific number sequences and are designed to reduce the probability of errors
What do many codes have?
Integrated check digits
What is the intention of check digits
To reduce the likelihood of mis-keying an item and hitting an alternative live item
Why is it difficult to detect check digits
Because there are a large number of variations possible
When can any user create product codes in a format that is useful for itself and/or its customers
When there is not an industry format
Original equipment manufacturer (OEM)
Generally perceived as the producer of own branded parts or equipment which are sold to other manufacturers for production and retail
Who do having industry standard codes have origins with?
The original equipment manufatcurer
Name another reason industry standard codes may have been created
As part of a quality, performance or conformance standards and documentation
Name 7 examples of items that use industry standard codes
- Car light bulbs
- Batteries for small devices
- Military use
- Health service use
- Books
- Import and export
- Specific dangerous substances
Who is the Harmonized Item description and coding system (international standard) governed by?
World Customs Organisation (WCO)
Explain the harmonized item description and coding system numbers
6 digit numbers, although countries may add either two or four digits to create further subdivisions
Is the harmonized item description and coding system recognised by nearly all countries of the world?
Yes
What do the European Union member states do with the harmonized item description codes
They incorporate the HS code into its own system - the additions being subdivisions and classifications used to determine any special duty payable, special arrangements or restrictions on entry
What are product codes used for?
To avoid errors
What must the buyer ensure when using product codes?
That the code chosen matches the dimensions, characteristics and quality required
What type of code is there a decline in?
Structured codes
What is the decline in structured codes linked to?
Much wider use of databases which can allocate different codes instantly and link these to specific orders but are transparent to the customer
What are organisations in B2B supply chains likely to use?
Product codes - sometimes these are shared, but often each is designed to fit the specific business requirements and systems used
What is the product code often key to?
Obtaining documentation relating to products
Name 9 types of product documentation that could be available by entering a product code into a manufacturers website
- Installation instructions
- Operational instructions
- Guarantee and warranty
- Technical specifications including temperature tolerances
- Safety instructions including safe disposal
- Electrical certification documents
- Packaging certification documentation
- Spare parts list, servicing requirements
- Product recall notices