GTIN Allocation Rules

Transcription

1 GTIN Allocation Rules Introduction Every day, in many countries throughout the world, people buy products at shops and supermarkets where the sale is recorded by scanning the bar code. In order to ensure that the sales are recorded accurately, it is essential that the number represented by the bar code is unique. This is true not only for items which pass through a retail point of sale, but also for items ordered, delivered and invoiced. The allocation of unique numbers to support this is the responsibility of manufacturers to ensure uniqueness of products in accordance with rules established and approved as part of the EAN.UCC Global Standards Management Process. These rules came into effect September 10, General Rule Allocating The Numbers A Global Trade Item Number ( GTIN ) is used to identify any item (trade item or service) upon which there is a need to retrieve pre-defined information and that may be priced or ordered or invoiced at any point in any supply chain. A separate unique GTIN is required whenever any of the pre-defined characteristics of an item are different in any way that is relevant to the trading process. The guiding principle is if the consumer is expected to distinguish a new trade item from an old trade item and purchase accordingly, a new GTIN should be assigned to the new trade item (product package and shelf edge label declarations should appear the same to the consumer). However, any law or regulation that contradicts these rules shall supersede these rules Specific rules that apply to prevalent industry practices have been endorsed by the Global Commerce Initiative Board, for the Fast Moving Consumer Goods FMCG industry. While all EAN.UCC. standards are voluntary; the rules are intended to drive normative practice within the FMCG sector.

2 Basic Principles for Assigning a GTIN A series of identical items use the same GTIN Any series of items which is different from another, for the purposes of trading (ordering, stocking or billing), is assigned it s own unique GTIN. A GTIN at the lowest packing level, often the unit sold in the retail store, must be based upon the EAN/UCC-8, UCC-12 or UCC/EAN-13 Data Structure. A GTIN used at the Grouping Level, often the case traded in the Supply Chain, must be based upon the UCC-12. UCC/EAN-13 or the UCC/EAN-14 Data Structure. These data structures provide unique identification when they are right justified in a 14-digit reference field, called a GTIN Format. Key Principles when considering the premise that existing GTINs have been correctly assigned. The Brand Owner is ultimately responsible for the correct identification and bar coding of their products (whatever a company s internal procedures for delegation for this responsibility). This includes the responsibility for deciding new assignment of GTINs. Changes to GTINs must be based upon optimizing the efficiency of the entire Supply Chain. The GTIN identifies all aspects of the Trade Unit for ordering or stocking or billing systems. Assignment of new GTINs should be based upon the needs of external trading partners. Manufacturers should manage internal product variants via their internal systems. A change to the GTIN at the lowest packing level will always lead to a change of the GTIN at any grouping level. When a company undergoes an acquisition, merger, a partial purchase, a split or a demerger, this will have a specific impact on GTIN Assignment. Companies should seek the appropriate guidelines from their Member Organization, EAN, GS1 US or GS1 Canada.

3 Examples of Allocation Rules/Assignment of a New GTIN Changes to Packaging Material or Type Changes to the packaging of the consumer retail trade item o Major Change Changes to packaging that results in changes to the shelf facings, dimensions or gross weight by more than 20% Changes to the packaging of the consumer retail trade item Minor Change o Minor packaging material changes on the retail consumer trade item level (e.g. PET to HDPE) that do not affect trade item facings (dimensions) when on the retail shelf Formulation Minor formulation changes that will replace the existing trade item and does not involve any change in the declaration to the consumer (e.g. is not covered by legislation). Changes for cost reduction reasons without changing the trade item characteristics, e.g. taste, viscosity, minor ingredients change, etc.)

4 Formulation change where the consumer is expected to distinguish the new from the old product and order accordingly. Where regulations or other requirements dictate the ability to distinguish the old formulation from the new, e.g. healthcare. Where the changes alter the fundamental consumer benefit, e.g. new flavour, aroma, etc. Changes that result in a different description (declaration to the consumer) Changes to ingredients as a result of seasonal variations, e.g. yogurt with seasonal fruit, where the actual fruits within are dependent on the season. GS1 Canada, as an independent third party, may act as an arbitrator in the case of two organizations who cannot come to some mutually agreeable resolution to the interpretation of the rules. It is encouraged that trading partners resolve their issues through private dialogue but in the event that this is not possible at the request of both parties GS1 Canada will act as a third party arbitrator.

5 Appendix A PHYSICAL TECHNICAL REQUIREMENT GROUP (PTRG) The physical Technical Requirements Group is responsible for reviewing the automatic identification technology standards (e.g. Barcodes and RFID) produced by the Technical Development Team, for information that travels on or with any physical entity to satisfy business requirements. PTRG is responsible for: Assessing the technical standard for: Data accuracy Consistency of solution Data and carrier quality and performance Reuse of approved symbologies and Application Identifiers All ergonomic factors related to the physical flow of the supply chain Quality of deliverable Ease of implementation Other responsibilities are to ensure the technical standard operates within the relevant EAN.UCC Methodology, policy and within the EAN.UCC System principles, across any industry sector and on a global basis.