Understanding EPCIS and its Role in Supply Chain Management:

Electronic Product Code Information Services (EPCIS) was first introduced back in 2007 by the Auto-ID Center at MIT. It is a global standard for exchanging information between different organizations and different technology systems for tracking products throughout the supply chain. EPCIS is an open standard that enables real-time tracking and visibility of products, increasing efficiencies throughout the supply chain, and providing much-needed transparency in our global economy.

In this blog post, we'll explain how EPCIS works, why it is important, and its role in supply chain management.

What Is EPCIS?

EPCIS is an electronic language for sharing information about products and their movements throughout the supply chain. It is a standardized way of sharing data between different organizations, systems, and locations. This language is based on the GS1 Electronic Product Code (EPC) standard’s numbering system, which assigns a unique identifier to each product.

The EPCIS standard defines how to express vital information on a product lifecycle event. It defines the terms used for identifying products, the information shared in each event type, and the rules of data sharing between parties.

Information shared by EPCIS includes data such as the products' unique IDs, origins, and in-transit locations, which are used to track products throughout the supply chain. This information allows supply chain managers to have real-time visibility into products’ movements in-transit, identify bottlenecks, and streamline operations.

Why is EPCIS Important?

EPCIS is an important tool because it allows stakeholders throughout the supply chain to have increased visibility into product movements, effects of disruptions and for taking corrective measures. In the past, supply chain visibility was difficult to achieve, leading to inefficiencies and the inability to quickly identify issues throughout the supply chain. EPCIS ensures all stakeholders have real-time visibility into supply chain operations and, therefore, can take corrective measures based on factual data.

Moreover, EPCIS empowers supply chain partners to collaborate and share important information in real-time. This helps in preventing in-transit mishandling which can compromise products’ safety and decrease quality.

EPCIS creates transparency in terms of data sharing and reducing data collection efforts as data can be shared seamlessly. It eliminates data silos, improving the exchange and use of data for making informed supply chain decisions.

How Does EPCIS Work?

EPCIS uses two types of data: Object Event and Quantity Event.

• Object Event: These events primarily convey a change in location or status of the object being tracked. For instance, when a pallet moves into a warehouse, its status changes from "in-transit" to "Arrived at Warehouse A," triggering an object event.

• Quantity Event: These events refer to notable changes in product quantity, such as when a box of 50 items is broken down into five smaller boxes of ten items each; the event reflects a significant quantity change.

To initiate information sharing, EPCIS uses middleware that connects different systems (like supply management systems and barcoding systems). Middleware helps bridge the data divide between two different technologies to facilitate data exchange.

When an event occurs, the system managers collect data about that event and store it on a cloud server or locally. The data is then formatted according to EPCIS standards, using XML or JSON and uploaded to a database.

EPCIS enables supply chain data sharing, but data privacy is intrinsic in these kinds of data-sharing operations. It ensures that sensitive data is protected by enabling companies to define data-sharing policies to meet their business needs.

EPCIS and Its Role in Supply Chain Management

EPCIS plays an essential role in supply chain management as it allows companies to optimize inventory allocation and delivery systems. It boosts management effectiveness and enables companies to better coordinate with business partners.

EPCIS also helps with after-sales service, such as product recalls. EPCIS enables stakeholders to track the product backward in case of contaminated goods, and proactively notify and recall them from the market. This tracing and tracking of product movements enable quicker response times and limit the spread of faulty goods, limiting losses due to class action suits or reputational damage.

Benefits of EPCIS

EPCIS enables stakeholders to identify inefficiencies in the supply chain in real-time, preventing wastage and a delay in product delivery. EPCIS allows supply chain participants to have information on immediate receipt, availability, and other time-sensitive information. It also leads to more informed decision-making and global visibility, enabling business leaders to make informed decisions.

EPCIS helps to optimize inventory, shipment, and delivery processes, reducing labor expenses and increasing supply chain efficiency. It encourages collaboration in the marketplace by standardizing how different data types can be expressed.

EPCIS’ versatile supply chain management structure creates the basis for Industry 4.0, enabling a faster technological rate of adoption with economic growth.

Challenges of EPCIS

Although EPCIS is an excellent addition to supply chain management, its adoption has been slow to some degree, especially among smaller businesses. EPCIS requires integration with existing supply chain management systems, taking a heavy toll on implementation time and technical resources.

An additional challenge concerns privacy as companies may not be keen to share sensitive data due to competitive reasons. However, this is where EPCIS requires organizations to determine data-sharing policies that meet their business needs.

Final Thoughts

From this blog post, we can see that EPCIS is an essential tool for business operations, improving transparency and data sharing through the supply chain. This electronic language enables real-time visibility throughout the supply chain, preventing bottlenecks and inefficiencies that would delay product delivery.

Implementing EPCIS requires time and effort, but the benefits outweigh the effort. EPCIS optimizes inventory, shipment, and delivery processes, reducing labor expenses and increasing supply chain efficiency.

To remain competitive in this industry, there must be an acceptance of EPCIS' role in managing the supply chain. The quicker this happens, the greater the efficiency, and product quality enhancements across the supply chain.

In conclusion, EPCIS provides a standardized language for exchanging data throughout a product's lifecycle, which enables effective decision-making and enhanced collaboration in the business environment.