Micro, small, and medium-sized (MSMEs) are the backbone of our country's economy. In fact, over 1 million businesses belong to this sector or at least 99.59 percent of the country's businesses. Despite this number, they often find themselves unsupported and faced with challenges related to operational inefficiencies and other productivity barriers. Often, their challenges stem from a lack of adva Robert "Bobby" Claudio nced technology adoption.

Robert 'Bobby' Claudio, president of the Philippine Retailers Association

This is where comes in alongside GS1 Philippines and Philippine Retailers. Today, Bobby takes us into the challenges small businesses face and how they can thrive despite it.

Thought Junkie: Bobby, what is your story?

Bobby Claudio: I am one of the founders of GS1 Philippines from way back when it began about 33 years ago. As President and CEO of GS1 Philippines, I plan to leverage my professional knowledge and experience to further improve our company's operations and its relationships with its associated partners and organizations.

My top priority, in particular, is to ensure the smooth transition from 1D barcodes to 2D barcodes across Philippine industries. This aligns with Ambition 2027, which aims to ensure that by 2027, all retail POS scanners worldwide can read and process 2D barcodes powered by GS1 and to increase global adoption of these barcodes by brand owners.

What has been your career trajectory?

Throughout my career, I have primarily placed my contributions towards the retail industry. Right now, as President and CEO, I am hoping to help the retail industry, most particularly MSMEs, in expanding its international recognition, as well as bring our local industry towards international standards, practices, and even technology. In addition, I have also been able to bring to the government the legitimate issues that our retailers are confronted with.

Discussing the challenges MSMEs face in their operations and competitiveness, how do limited market penetration issues, such as access to widespread distribution channels and brand recognition, affect them?

When it comes to operations, MSMEs face significant challenges due to having fewer resources compared to larger retail enterprises. In terms of competitiveness, they lack the extensive distribution networks and brand recognition that larger companies enjoy, making it difficult for them to penetrate new markets. Additionally, the stiff competition with larger enterprises further exacerbates their challenges, as MSMEs find it hard to stand out more.

How does encountering difficulties with product identification and verification disrupt business operations?

The difficulties with product identification and verification can easily disrupt businesses by creating confusion between businesses and their consumers, especially if they are not applying globally accepted standards within their supply chains. This can potentially lead to situations such as contrasting information for what is supposed to be the same standard as a result of different systems using a different set of standards. Furthermore, if an error occurs and cannot be precisely traced, resolving it can be resource-intensive, consuming substantial amounts of time and money.

Addressing the misconceptions of barcode technology, how are barcodes beneficial for businesses of all sizes and not just exclusive to larger retailers?

Barcodes benefit businesses of all sizes by implementing standards for identification. These standards are globally accepted by everyone and applicable to all businesses, regardless of their size. MSMEs and large retailers alike follow the same standards, ensuring consistency across industries. Additionally, the standards applied in one country are identical to those used in another, facilitating seamless international operations.

How much does it cost to integrate barcode technology, and is it affordable for small enterprises?

To obtain their own GS1 barcode for their products, MSMEs must first apply for membership with GS1 Philippines through email at membership@gs1ph.org or visit the website at gs1ph.org. It is only then that they can obtain a GS1 barcode. The cost of membership is affordable at the lowest joining fee of P1,680, making it accessible for small enterprises.

Why is it crucial for MSMEs to implement a legitimate barcoding system?

It is crucial for MSMEs to implement a legitimate barcoding system because the majority of compliance requirements require businesses to have GS1 barcodes. By adopting a proper barcoding system, MSMEs can meet government regulations, facilitating their expansion both locally and internationally. Without such compliance, these businesses would face significant challenges in growing their operations and reaching new markets.

How does integrating GS1 barcodes enhance inventory management for MSMEs?

The integration of GS1 barcodes enables MSMEs to achieve comprehensive or full traceability across the supply chain. This means their products will have GS1 Identification Keys, making it easier to track it down by anyone who can read GS1 barcodes.

How does barcode technology safeguard product authenticity amidst the prevalence of counterfeit goods?

By implementing barcode technology, supply chains can significantly enhance their ability to combat counterfeiting by being able to precisely track a product's journey from its origin to the final destination within the supply chain. As the supply chain uses GS1 Identification Keys, it is only a matter of identifying them to determine whether or not a product is authentic or a counterfeit just by scanning its barcode.

How can MSMEs integrate barcode technology, and what are the essential steps to take?

MSMEs can integrate barcode technology into their core business processes, particularly in inventory management, to enhance their operational efficiency. This integration offers numerous benefits, such as heightened operational efficiency, reduced errors, enhanced traceability, and improved counterfeit detection. The essential steps to acquire membership with GS1 Philippines to enable them to implement barcode technology using GS1 standard barcodes seamlessly. Having a globally recognized and standardized barcode not only streamlines internal processes but also enhances interoperability with supply chain partners, contributing to overall business competitiveness and market credibility.

How does GS1 Philippines fulfill its mission of empowering MSMEs' product management to meet compliance requirements and access global markets?

Through GS1 barcodes, GS1 Philippines equips MSMEs with the tools to compete effectively with larger retailers. By ensuring their products are visible in the global market, MSMEs can expand their reach to leading retailers and online marketplaces across borders. Additionally, GS1 barcodes also enable compliance with essential regulatory standards, eliminating barriers that could otherwise impede local and international business operations, including customs requirements.

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