The Hindu Business Line : Now, EAN barcoding for garments

BARCODE authority EAN India is looking to achieve in the domestic garment sector what it has accomplished in the fast moving consumer goods (FMCG) sector.

It is working with organised retail chains (such as Shoppers' Stop) to ensure that both the manufacturers/suppliers and retailers adopt the standardised EAN barcodes on the packaging of the garments that are sold within the country.

EAN India was set up as a not-for-profit organisation in 1996 under the Commerce Ministry. It represents a joint industry-Government collaborative initiative at bringing international best practices to India.

Barcodes are meant to enable automated data capture of product information with 100 per cent accuracy and at great speed through the use of barcode scanners.

When used with EAN.UCC identification numbers (codes), they enable global identification of products, locations and companies.

EAN.UCC standards have been evolved by industry itself and also endorsed by the International Standards Organisation.

These standards provide unique and universal identification of each product, consignment or pallets and facilitate business documents exchange electronically using global electronic data interchange standards.

"The adoption of EAN barcodes by both the manufacturer and the retailer of garments would be a win-win situation for both. It would lead to cost savings, especially for the retailer, as currently both of them use proprietary codes," Mr Ravi Mathur, CEO, EAN India, told Business Line here.

Mr Mathur highlighted that separate proprietary barcodes are being affixed on the same packaging of garments — one at the supplier's end and the other at the time of receipt of the goods by the retailer for its use. "The higher costs in such business processes could be avoided or minimised by using standardised EAN barcodes," he said.

He also said that the initiative to make the suppliers adopt EAN barcodes would be entirely retailer-driven. "This is a global practice. It's the retailers who impress upon the suppliers to adopt EAN barcodes at their end," he said.

So, what are the benefits flowing to the retailers and suppliers from such an exercise? At the retailer's level, Mr Mathur explained, there would be no waste of time in affixing their proprietary codes. He highlighted that the supplier would also benefit from ready availability of products at the shelves of the retail outlets (products would be shelf ready at quicker time).

"For large retailers handling huge volumes and product variants within a big network across the country, the cost savings would be enormous and helpful in the current competitive environment," he said.

With increased competition, retail chains in India are looking at supply chain automation and standardisation as a key competitive differentiator for their success at the market place.

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