GS1 DataBar™ - Sunrise 2010

Have you seen this barcode yet?  If you clip coupons from the Sunday Newspaper inserts or have examined loose produce identification stickers closely, there is a good chance you have, but perhaps you did not recognize it as a new barcode symbology. Actually this family of new symbols has been available since early 2000 and was  known as Reduced Space Symbology® (RSS®).  The GS1 DataBar™  symbology was rebranded in February 2007 to avoid any confusion with the Internet technology known as Real Simple Syndication (RSS). 

This symbology does live up to its initial name by its ability to encode up to 70 digits of data in a lot less space than a conventional GS1-128 horizontal bar code symbol with the added benefit of being readable by many laser scanners in any orientation; e.g. omnidirectional. For POS this capability is really important in -high-volume, high-speed checkout environments. With the ability to pack quite a bit of data in a relatively small space and have a first-time read rate that is equal to the ubiquitous Universal Product Code and European Article Number (UPC/EAN) symbols, the GS1 DataBar can provide a low-cost bridge solution for RFID/EPC applications or used in situations where RFID tags may not be viable.

The first major launch of this symbology will be on Manufacturer Coupons.  Bar codes on coupons have been present since 1985 using a form of the UPC-A symbology.  Starting in 1997 the symbols were extended by the addition of GS1 -128 Coupon Extended Codes that are used by the coupon clearinghouses to electronically capture data that could not be encoded into the UPC-A format. With the advent of the 2005 Sunrise for the Global Trade Item Number® (GTIN®) and GS1 issuance of variable length company prefixes, the Joint Industry Coupon Committee (JICC) was asked by the industry to reengineer the coupon system to get ready for the new world, close the gaps and issues that exist with the current coupon structure, and improve the coupon's promotional capabilities.

A Re-engineering Committee was formed under the auspices of the Joint Industry Coupon Committee with participation from the Association of Coupon Professionals (ACP), Food Marketing Institute (FMI), Grocery Manufacturers of America (GMA), GS1 US™ and several key suppliers and retailers.  Today's manufacturer coupon is limited by its UPC-A heritage of 12 digits inclusive of a check digit resulting in these challenges:
• Unable to handle variable length company prefixes now in 6-9 digits in length
• Value Code structure limited to less than 100 different values/offer types
• Validation with a single Company Prefix and Family Code only
• No systemic expiration date checking
• Cashier intervention required to handle complex offers
• Use of bypass code (992) inhibits appropriate offer validation

As of May 2006, the GS1 Board affirmed January 2010 as a global sunrise date for GS1 DataBar bar codes and the GS1 Application Identifier System. This date means all retailers are expected to have all their trade item scanners ready to scan GS1 DataBar bar codes and process GS1 Application Identifiers (AI's). The enablement of GS1 DataBar and Application Identifier by this date provides the requisite support for handling the new coupons as they are introduced during the phase-in period in the first half of 2010.

So, what does the new coupon system bring to the industry? The new solution does address a large number of current shortcomings:
• Company Prefixes: provides the ability to encode the entire GS1 Company Prefix that fully meets the 2005 Sunrise requirements and global identification of the issuers of coupons for products sold in the U.S.
• Value Codes: Coupon values in any amount up to $999.99 are now possible; not limited to a table of less than 100 possibilities
• Offer Options: The new system permits precise descriptions and validation of offers involving multiple quantities of one or two additional purchase requirements to qualify for the value amount
• Fraud: Comprehensive definition of Value Codes and offers enables rigorous checking at the time of redemption
• Audit-ability: Stores Offer Code with item redeemed as a part of the T-Log (POS journal)

Furthermore it provides the capability for specifying more complex coupon offers that previously were only available with retailers' electronic marketing programs for store or retailer-issued coupons.  Although the initial implementation is targeted for use in the United States and Canada, the new design provides a path for global users to adopt this coupon system if desired.

Although the initial design for the new coupon data structures was formulated close to four years ago, the finalization of the specification necessitated several key steps to ensure acceptance by the Industry at large. An extensive public review and comment period was conducted where comments and questions were addressed and several recommended changes to the specification were incorporated. Scanning speed and first-read rate performance testing was conducted on a variety of varying length GS1 DataBar symbols across a variety of scanners and compared against the UPC-A format showing no negligible difference in read rate performance. Approval of the Application Identifier 8110 for Coupons was secured through the Global Standards Management Process (GSMP). This step enabled the JICC and GS1 US to finalize and publish the North American Coupon Application Guideline Using GS1 DataBarTM (RSS) Expanded Symbols as of September 2007.

How does the industry make the transition from 1985 to 2010? Certainly not in a single step as a two-phase migration plan has been developed that is analogous to a "soft-opening" in retail parlance. Starting in early 2008, the GS1-128 Coupon Extended Code are being replaced by the GS1 DataBar Expanded representation of the current UPC-A coupon. During this Interim phase new coupons issued will contain both the UPC-A symbol and the GS1 DataBar Expanded symbol.  Retailers who scan these coupons will continue to process the UPC-A symbol on the coupon and Coupon Clearinghouses will be processing and settling these paper coupons based on the GS1 DataBar Expanded symbol. The Final phase begins in early 2010 when new coupons will just contain the GS1 DataBar Expanded symbol.
 
During this Interim period the UPC-A symbol coupon does not change. There is no forced impact on retailers until end of Interim phase. Each phase (Interim and Final) has a "Start After" and a "Complete Before" period that is six months in duration so there are no "drop dead" dates.  During this Interim phase, the GS1 DataBar Expanded coupons should encode only what is possible with current coupons meanings the coupon values in the GS1 DataBar need to match those values contained in the UPC-A format Value Code Table. Also the GS1 Company Prefix that can be from six to twelve digits in length has replaced the five digit Manufacturer Identification Number (MIN) contained in the UPC-A barcode symbol.

What should retailers who scan coupons be doing now? If not done so already, you should have a current equipment inventory and be contacting your scanner / scale & hand-held scanner provider(s) and ask them about GS1 DataBar Expanded readiness of your equipment. Initiate contact with your POS solution provider(s) and make sure you include self-scan & self-checkout solutions. Inquire when their solutions will be ready to accept the GS1 DataBar Expanded for Coupons. Contact your Retail Coupon Clearing House and ask them about their experiences processing the Interim GS1 DataBar coupons and what you should be prepared for in your acceptance and handling these coupons in 2010. Your company's applications may need to change as well. Conduct an assessment of those downstream systems that process the POS Transaction Logs for paper coupons such as QuickPay programs and Cashier Activity Monitoring applications. Keep in mind there are paper coupons in circulation with no expiration dates so your POS solution and your internal systems will need to handle both UPC-A format and GS1 DataBar format coupons for the foreseeable future.
 
Since you will have the "hood" opened on your POS system and POS Transaction Log processing you may want to consider implementing GS1 DataBar applications for Fresh Food identification & labeling. As mentioned in the introduction GS1 DataBar Stacked s are starting to appear on loose produce stickers and GS1 Working Groups are formulating identification and labeling standards and guidelines using the GS1 DataBar for random weight packages of Produce, Meat & Seafood, and Deli & Bakery products. If you are planning to or are already scanning GS1 Databar for loose produce, and you are not ready to scan and process the new Coupons, be sure to work with your scanner and POS solution provider to ignore the Coupon AI (8110) to avoid issues at the front end. Watch for article on GS1 DataBar Expanded for Fresh Foods Labeling in an upcoming issue.

Remember Coupon Changes are coming in January 2010.