Caterpillar

For 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2014 sales and revenues of $55.184 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Challenge

Caterpillar maintains a complex supply chain with thousands of suppliers shipping components to hundreds of receiving locations including many which are manufacturing facilities across the globe.  In 2012, Caterpillar’s SAP Integration Plan included the use of an automated receiving procedure which would leverage EDI and barcoded shipping labels at select receiving locations.  Caterpillar’s CPS Team identified the need to update their SP20 Shipping Label Requirements to be aligned with both industry standards and business practices.   Additionally, the CPS Team recognized the need to integrate a barcode certification process to ensure suppliers were in compliance with both EDI and SP20 Shipping Label Compliance.

BCG Solution

Bar Code Graphics met with different groups at Caterpillar to align their business objectives and expectations regarding the certification of SP20 Shipping Labels.  Once alignment among the stakeholders was defined Bar Code Graphics designed a solution which included;

  • Updating Caterpillar’s SP20 Shipping Label Requirements to be aligned with the AIAG B-10 specifications.
  • Develop a SP20 Certification Process which could be performed internally by Caterpillar’s Data Accuracy and Records Management Team.
  • Created Sp20 Solutions for Caterpillar suppliers which included; SP20 Label Templates, barcode scanners and software.

Results

All of Caterpillar’s 14,000 suppliers have gone through SP20 Certification and Caterpillar is continuing to work with their receiving locations to maximize efficiency.  The SP20 Shipping Label Requirements are still the current guidelines in use at Caterpillar and have facilitated supplier compliance.

  • UPC (GTIN-12)

  • ISBN/Books

  • Medical/UDI

  • Supply Chain

  • Assets/Inventory

  • Coupon

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UPC (GTIN-12)

There are a variety of different types of barcodes. However, the UPC (Universal Product Number) symbol is the most recognized barcode in the United States, since it appears on almost every retail product. The UPC symbol is the barcode representation of the GTIN-12 which consists of twelve numeric characters that uniquely identify a company’s individual product. The GTIN-12 number is part of the family of GS1 global data structures that employ 14 digits and can be encoded into various types of data carriers.

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ISBN/Books

A requirement for selling a book through booksellers, wholesalers, and distributors is the assignment of unique ISBN numbers for each title and for each book to be marked with a Bookland EAN barcode.

The Bookland symbol allows for encodation of ISBNs (the numbers publishers use to identify their products). Since an ISBN is unique to one particular title (or product), the corresponding Bookland EAN symbol is a title-specific marking which is unique for that title. For example, if a title is available in hard cover, soft cover and as an e-book, three unique ISBN Bookland EAN bar codes are required.

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Medical/UDI

The FDA UDI Mandate is part of a comprehensive healthcare traceability initiative to improve patient safety.  The Unique Device Identifier (UDI) requirement is rooted in holding each member of the supply chain responsible for ensuring each medical device is marked with a UDI barcode with data maintained on the FDA’s GUDID universal database.

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Supply Chain

Logistic barcodes such as the GS1-128 Shipping Label are used to track movement of a shipment within a supply chain.  Since suppliers are making shipments to a variety of trading partners it is essential to integrate the relevant standards and current technology.  The use of EDI and 2D barcodes which can encode much more data has transformed many supply chains.

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Assets/Inventory

The first step in designing an asset tracking system is to determine whether you are working with assets or inventory.  Assets are any items a company uses internally such as tools, equipment, furniture etc.  Inventory are items which are sold, distributed or used by a company.  The distinction between Assets and Inventory is essential in regards to how the items will be marked, scanned and stored.

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Coupon

The successful integration of GS1 DataBar Coupons has dramatically improved many promotions.  The interhent features including; value codes and automatic expiration date checking for retailers, has enabled more efficient redemption, much better security and better metrics to measure the performance of a campaign.

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Barcode Graphics

Barcode Graphics