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Background for Discussion GTIN-14 on DEIG Product Label

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?

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Background for Discussion GTIN-14 on DEIG Product Label

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  1. Background for DiscussionGTIN-14 on DEIG Product Label Distribution Executives Interest Group March 9, 2006

  2. 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?

  3. DEIG Product Label

  4. 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

  5. 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

  6. 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-13 978-1-234-56789-7 GTIN-14 (Unit) 09781234567897 GTIN-14 (PL, e.g., Carton) 19781234567894

  7. GTIN-14 (Review) GTIN-14 (Unit) 09781234567897 • 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

  8. 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

  9. 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

  10. 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

  11. A Product Handled by Case GTIN-14

  12. Unit and Carton Identifiers GTIN-14 UPC (EAN)

  13. GTIN-14 Examples In General Retailing

  14. 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

  15. 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

  16. DEIG Product LabelGTIN-14 – 19781234567894Carton Quantity – 24 (this carton only)

  17. Packaging Level IndicatorBook Industry • In the future, other Packaging Levels may be designated by suppliers to improve efficiency through the supply chain

  18. 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?

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