background for discussion gtin-14 on deig product label

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Page 1 Background for Discussion GTIN-14 on DEIG Product Label Distribution Executives Interest Group March 9, 2006

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Background for Discussion GTIN-14 on DEIG Product Label. Distribution Executives Interest Group March 9, 2006. Discussion Points. Is the configuration of the GTIN-14 on the DEIG-recommended Product Label the most appropriate for the Book Industry? - PowerPoint PPT Presentation

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Page 1: Background for Discussion GTIN-14 on  DEIG Product Label

Page 1

Background for DiscussionGTIN-14 on

DEIG Product Label

Distribution Executives Interest GroupMarch 9, 2006

Page 2: Background for Discussion GTIN-14 on  DEIG Product Label

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Discussion Points

• Is the configuration of the GTIN-14 on the DEIG-recommended Product Label the most appropriate for the Book Industry?

• Once consensus is achieved on the first

point, would more explanation or description of the coding in the DEIG Guidelines be helpful?

Page 3: Background for Discussion GTIN-14 on  DEIG Product Label

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DEIG Product Label

Page 4: Background for Discussion GTIN-14 on  DEIG Product Label

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What is GTIN-14?• The Global Trade Item Number (or GTIN) is a

family of internationally recognized identifiers• It includes:

– UPC – Universal Product Code (12/13 digits)– EAN – International Article Number (13 digits)– GTIN-14 (14 digits)– Other identifiers

• Any member of the family can be expressed as a GTIN-14 by right justifying it and zero filling to the left

Page 5: Background for Discussion GTIN-14 on  DEIG Product Label

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Why Use GTIN-14?• We need some way to indicate on the outside of a carton

the contents of that carton• GTIN-14 was developed by GS1 to meet that need and is

utilized widely by general retailing• If the Book Industry adopts the GTIN-14 standard (which

we have), we align ourselves with national and global supply chain practices

• By aligning ourselves with global practices, we:– Meet the needs of a wide range of customers– Enable participation in Global Data Synchronization (GDS)

or standardized data distribution– Gain the potential for supply chain efficiencies– Leverage techniques developed elsewhere

Page 6: Background for Discussion GTIN-14 on  DEIG Product Label

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GTIN-14 (Review)• The GTIN-14 is built by placing the ISBN-13 (or

any other EAN) in a 14-digit field, adding a prefix, and recalculating the check digit

• Prefix ‘0’ indicates the unit level (the item itself)

• Prefixes ‘1’ – ‘8’ have significance as packaging level indicators

ISBN-13978-1-234-56789-7

GTIN-14 (Unit)09781234567897

GTIN-14 (PL, e.g., Carton)19781234567894

Page 7: Background for Discussion GTIN-14 on  DEIG Product Label

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GTIN-14 (Review)• Prefix ‘0’ indicates unit level (the item itself)

• This form is used primarily in electronic communications– Data Synchronization– Business Transactions

• It rarely appears on the outside of a carton; then usually when the carton contains a single item

GTIN-14 (Unit)09781234567897

Page 8: Background for Discussion GTIN-14 on  DEIG Product Label

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GTIN-14 and Data Synchronization• Data synchronization means establishing sources of

standardized product data – Data with known, validated attributes (properties) – Data that may be used by all participants in a supply chain

• The GTIN-14 is the standard identifier for Global Data Synchronization (GDS)

• Participation by the Book Industry in Global Data Synchronization is inevitable:– Traditional booksellers sell non-book products – General retailers sell books

Page 9: Background for Discussion GTIN-14 on  DEIG Product Label

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GTIN-14 (Review)• Prefixes ‘1’ – ‘8’ have significance as Packaging

Level indicators

• The prefixes do not have fixed definitions• For one item,

– ‘1’ = Carton of 24– ‘2’ = Carton of 36

• For another item,– ‘1’ = Carton of 12– ‘2’ = Pallet of 400

GTIN-14 (PL, e.g., Carton)19781234567894

Page 10: Background for Discussion GTIN-14 on  DEIG Product Label

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Packaging Level• Packaging Level is designated by the supplier

– Customers can only request Packaging Levels that have been designated by the supplier

– Packaging level information must be transmitted before business transactions can take place

• Packaging level is a major factor in general retail supply chains (case pack handling)– Distribution and stock receiving by case pack is more efficient

than single item handling– Thus most ordering in general retailing is by case pack

Page 11: Background for Discussion GTIN-14 on  DEIG Product Label

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A Product Handled by Case

GTIN-14

Page 12: Background for Discussion GTIN-14 on  DEIG Product Label

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Unit and Carton Identifiers

GTIN-14

UPC(EAN)

Page 13: Background for Discussion GTIN-14 on  DEIG Product Label

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GTIN-14 Examples In General Retailing

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Packaging Level IndicatorGeneral Retailing

• By convention or common usage (not mandated by standard), a leading digit of ‘1’ usually signifies a basic case pack in general retailing

• Manufacturers may choose other values (‘2’ through ‘’8’) for standard case pack or for other packaging levels

• In general retailing, Carton Quantity is transmitted through data synchronization

Page 15: Background for Discussion GTIN-14 on  DEIG Product Label

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Packaging Level IndicatorBook Industry

• DEIG-recommended Product Label follows the convention of ‘1’ as case pack

• Carton Quantity is transmitted by inclusion on the Product Label (for now) and may vary for the same title

Page 16: Background for Discussion GTIN-14 on  DEIG Product Label

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DEIG Product LabelGTIN-14 – 19781234567894

Carton Quantity – 24 (this carton only)

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Packaging Level IndicatorBook Industry

• In the future, other Packaging Levels may be designated by suppliers to improve efficiency through the supply chain

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Discussion Points

• Is the configuration of the GTIN-14 on the DEIG-recommended Product Label the most appropriate for the Book Industry?

• Once consensus is achieved on the first

point, would more explanation or description of the coding in the DEIG Guidelines be helpful?