Danson Decor Inc. Barcode Guidelines Edition

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Danson Decor Inc. Barcode Guidelines 2012 Edition

This page left intentionally blank. Should you have questions, please contact the Danson Product Compliance Team compliance@dansondecor.com

INDIVIDUAL UNIT PACKAGING GUIDELINES (UPC) Danson Decor Inc. uses EAN/UPC symbology for use on individual retail unit packaging. Universal Product Code Version A (UPC-A) is mandated for 100% of all individual retail unit packaging unless otherwise specified. UPC-A Barcode Sample UPC-A Barcode Definition UPC-A is a barcode encoding 12 numeric characters sometimes called a GTIN-12 (Global Trade Item Number). It is used to uniquely identify a consumer package. The UPC-A consists of the following segments: (A) UPC Company Prefix (between 6 to 10 digits) assigned uniquely to each member company by GS1. (B) Item Reference assigned and controlled by our company to identify each of our items. The item reference will be unique for each item. (C) 1-digit Check Digit located in the twelfth position of the barcode. The check digit is derived from a standard arithmetic formula based upon the first 11 digits of the code. It is used as a numeric check to verify the integrity of the other eleven digits when scanned or manually key entered. (Please refer to Page 10 for calculation methods.) Danson Decor Inc. 2012 3

INDIVIDUAL UNIT PACKAGING GUIDELINES (UPC) REQUIREMENTS Minor barcoding mistakes can lead to major problems and unnecessary costs. Following are a few important points to remember concerning the production, placement, and details of UPC-A barcodes: 1. Barcodes Provided For You In order to standardize the printing of UPC-A labels as well as improve your ability to review information pertaining to UPC's, GTIN's, and other PO information, Danson Decor Inc. has created a new resource that will allow vendors to view PO's and download pre-created UPC-A and GTIN-14 barcodes as images for all items on the PO. This will allow factories to simply insert the barcode image into any commercial label and/or word processing software. This new resource is located at: http://www.dansondecor.com/danson/en/vendor_resources 2. Selling Units - Each selling unit (individual product) which is intended for retail sale to consumers should be marked with a UPC barcode, typically on the rear or bottom of product packaging. A barcode placement area will always be shown on all our packaging artwork. 3. Human Readable Print all digits beneath the barcode symbol on all products (UPC-A 12-digits in the format 1 23456 78901 2.) 4. Verify Before Printing Factories are well advised to have any prospective barcode symbol checked using a barcode verifier to ensure it is accurate and scannable prior to acceptance. A scanner is not the same as a verifier; a verifier reports on the print quality of the barcode. Failure of a barcode to scan will result in the relabelling of product upon receipt. The costs associated with any relabelling as well as potential noncompliance fines will be at your expense. 5. Validate Before Shipping Test scan your UPC-A codes prior to shipment. This will help ensure there are no quality problems with the code, the check digit is correct, and the barcode has been applied to the correct product. 6. Samples Must Be Provided Before Shipping - A scannable copy of all UPC-A barcodes (which should be combined with packaging artwork approval photos) must be provided to Danson Decor Inc. within 15 days of receipt of artwork and no later than 60 days prior to shipment for verification of scannability as well as correctness of data. Failure to provide these samples in the stated timeframes before shipment may result in unnecessary costs or fines to your company. Danson Decor Inc. 2012 4

SHIPPABLE PACK GUIDELINES (GTIN) Danson currently requires a GTIN-14 for use on all Shippable Packs such as Inner Polybags, Inner Boxes and Master Cases. This new requirement replaces the previous requirement for CODE-128 barcodes which are no longer required. The GTIN-14 is designed to quickly identify products which are unitized in standard packs at the inner polybag, inner box, master case, or pallet levels. That is, each shipping container or packing level that always contains the same quantity of the same product requires a GTIN-14 barcode. Steps in Defining Our GTIN-14 E E A = Package Level B = Our Company UPC Prefix C = Our Item Identifier D = The Check Digit E = Bearer Bars to delimit the code 1 0 0 1 2 3 4 5 6 7 8 9 0 2 A B & C D 1. Determine the levels of packing for a given product. Inner Polybags will always start with 1 0. Inner Boxes will always start with 2 0. Master Cases will always start with 3 0. 2. Obtain the item's UPC-A code. 3. Drop the last digit or check digit from the UPC-A code.these 11 digits from the UPC-A code (IE 1 23456 78901) should be imbedded within the GTIN-14 barcode for the given product by adding on the Packing Level identifier. For example, an item has a UPC-A of 0 12345 11114 3. You will drop the last "3" and only use the first 11 digits in calculating the GTIN-14. As explained below in Steps 4-6, additional numbers will be added in front of the UPC-A 0 12345 11114, and a new check digit will be calculated as the last digit of the GTIN-14. 4. 1st digit of the GTIN-14 Packing indicator of 1 0 through 4 0. 1 0 applies to an inner polybag, 2 0 applies to an inner box, 3 0 applies to the master carton, and 4 0 to the pallet (which is not applicable for Import orders) for a given product. For example, for the item used in Step 3 above, it has an inner box of 6 and a master carton of 36. Thus the GTIN-14 without the check digits for this item would be 2 0 01234511114 and 3 0 01234511114 respectively. Danson Decor Inc. 2012 5

SHIPPABLE PACK GUIDELINES (GTIN) STEPS IN DEFINING YOUR GTIN-14(continued) 5. 2nd digit of the GTIN-14 The 2nd digit of the GTIN-14 with embedded UPC-A will always be zero as noted above when we state "1 0" or "2 0". 6. 3rd - 8th digits of the GTIN-14 This is our U.P.C. Company Prefix as used within the UPC-A. For example, our UPC Company Prefix is usually 062615 or 774282. 7. 9th - 13th digits of the GTIN-14 This is our item number as used within the UPC-A. For example, the item number as assigned in Step 3 is 11114. 8. 14th digit of the GTIN-14 This Check Digit is derived from a standard arithmetic formula based upon the first 13 digits of the GTIN-14 (Please refer to Page 10 for calculation methods.) The GTIN-14 check digit for each pack level WILL BE DIFFERENT as well as that for the UPC-A will be different. Using the example item from Step 3, the check digits would be as follows: the product level (UPC-A) has a check digit of 3, the inner pack (GTIN-14) has a check digit of 7, and for the master carton (GTIN-14) it has a check digit of 4). 9. Bearer Bars The horizontal thick lines which touch the vertical bars of the ITF-14 are required by Danson. They insure that the scanner reads the entire barcode and provides a quick identification of the code as the ITF-14. The bearer bars must intersect with the top and bottom of the vertical bars. 10. Human Readable Print all 14 digits beneath the barcode symbol. The spacing between the numbers (as shown in the illustration above Step 1 on Page 5) enhances readability but is not a requirement when printing the 14 digits. Danson Decor Inc. 2012 6

SHIPPABLE PACK GUIDELINES (GTIN) REQUIREMENTS Barcoding mistakes can lead to major inventory problems and impact the entire distribution cycle with our customers leading to unnecessary costs and potential fines for your company. The following are a few important points to remember concerning the production, placement, and details of the new GTIN-14: 1. Barcodes Provided For You In order to standardize the printing of GTIN-14 labels as well as improve your ability to review information pertaining to GTIN's, UPC's and other PO information, Danson Decor Inc. has created a new resource that will allow vendors to view PO's and download pre-created UPC-A and GTIN-14 barcodes as images for all items on the PO. This will allow factories to simply insert the barcode image into any commercial label and/or word processing software. This new resource is located at: http://www.dansondecor.com/danson/en/vendor_resources 2. Shippable Packs - Each level of packing (inner polybag, inner box or master case) must be marked with a unique GTIN-14 barcode label. 3. Size of Symbol and Label - The size of the code and label should be proportional to the size of the label, bag, box or case. Keep in mind, the minimum size for the actual GTIN-14 barcode is 3/4 in height by 3 in width. This will require that the minimum label size for inner polybags and inner boxes is 2" in height by 4" in width (Avery standard label 5163 or 8163). For master cases, the minimum size is 3.33" in height by 4" in width (Avery standard label 5164 or 8164). Any exception to the minimum size must be approved by the Danson Product Compliance Dept. Please refer to samples shown in section 13. 4. Printing Directly on Box or Case - In order to ensure the quality of the barcodes, Danson will not accept the direct printing of GTIN-14 barcodes on the boxes or cases themselves. All GTIN-14's must be affixed by way of a black on white label. 5. Quiet Zone - Allot enough white space on both sides of the barcode symbol itself otherwise the barcode cannot be scanned. 6. Contrast of Symbol - Danson's scanners, as do most point of sale retail scanners, employ red lasers. This means that our scanners are blind to red, and most shades of purple and blue. Do not use these colors for the dark elements when producing barcode symbols. Black is always the best, and preferred, print colour. 7. Human Readable - Print all 14 digits beneath the barcode symbol. Danson Decor Inc. 2012 7

SHIPPABLE PACK GUIDELINES (GTIN) REQUIREMENTS (continued) 8. Verify Before Printing Factories are well advised to have any prospective barcode symbol checked using a barcode verifier to ensure it is accurate and scannable prior to acceptance. A scanner is not the same as a verifier; a verifier reports on the print quality of the barcode. Failure of a barcode to scan will result in the relabelling of product upon receipt. The costs associated with any relabelling as well as potential noncompliance fines will be at your expense. 9. Validate Before Shipping - Test scan your GTIN-14 codes prior to shipment. This will help ensure the check digit is correct and that the barcode has been applied to the correct shipping container. 10. Location of Label - Danson requests that the GTIN-14 label be printed and applied to the lower right-hand corner of two adjacent sides of the shipping container; one label on the long side and one label on the narrow side. It should be placed 1.25 from the bottom of the vertical symbol bars to the bottom of the carton. And, it should be placed no closer than 0.75 from the edge of the container. Please refer to the illustration below. 11. Samples Must Be Provided Before Shipping - A scannable copy of all GTIN-14 barcodes must be provided to Danson Decor Inc. a minimum of 30 days prior to shipment for verification of scannability as well as correctness of data. In addition, a pre-production photo of each inner polybag and/or inner box and/or master case for each item must be provided to Danson a minimum of 15 days prior to shipment in order to verify the correct placement of the barcode label. Failure to provide these samples in the stated timeframes before shipment may result in unnecessary costs or fines to your company. Danson Decor Inc. 2012 8

SHIPPING PACKAGES GUIDELINES (GTIN) REQUIREMENTS (continued) 12. Label Format The following is an example of a Shippable Pack label containing a GTIN-14 Barcode. ITEM: X12345 ORIGIN: CHINA QTY. / QTE.: 36 PC LEVEL/NIVEAU: MCS PO / BC: 501501 DATE: 10/29/2012 3 00 12345 67890 6 Include the following information ITEM = The Danson Item Number. ORIGIN = The Country of Origin, IE China. QTY. / QTE. = The quantity packed in the Shippable Pack defined in the Unit of Measure as shown on our PO. For example, 36 PC in a case as shown. LEVEL/NIVEAU = The pack level indicator. Available indicators are IPB for an inner polybag, IBX for an inner box and MCS for a master case. PO / BC = The Danson PO Number. DATE = The date of shipment. ITF-14 = Barcode including horizontal Bearer Bars. HUMAN READABLE = The full 14 digits of the GTIN-14 printed out under the ITF-14 barcode. 13. Label Samples The following are examples of Shippable Pack labels containing a GTIN-14 Barcode (provided for each level of packing.) Inner Polybag (IPB) Inner Box (IBX) Master Case (MCS) Danson Decor Inc. 2012 9

CHECK DIGIT CALCULATION METHODS HOW TO CALCULATE THE UPC-A CHECK DIGIT 0 12345 11114? 1. Starting at the left, sum all the characters in the ODD positions (that is, first from the left, third from the left, and so on), starting with the number system character. 0 + 2 + 4 + 1 + 1 + 4 = 12 2. Multiply the sum obtained in Step 1 by 3. 3 x 12 = 36 3. Again, starting at the left, sum all the characters in the EVEN positions. 1 + 3 + 5 +1 + 1 = 11 4. Add the product of Step 2 to the Sum of Step 3. 36 + 11 = 47 5. The modulo-10 check digit value is the smallest number which when added to the sum of Step 4 produces the next highest multiple of 10. In this example, the next highest multiple of 10 in Step 4 is 50. Adding 3 to 47 equals 50; therefore, 3 is the check digit for this barcode. Note: If the sum in Step 4 is a multiple of 10, the check digit would be zero. (3 + 47 = 50) Check digit is 3 UPC = 0 12345 11114 3 HOW TO CALCULATE THE GTIN-14 CHECK DIGIT 2 00 12345 11114? 1. Starting at the left, sum all the characters in the ODD positions (that is, first from the left, third from the left, and so on), starting with the package indicator. 2 + 0 + 2 + 4 + 1 + 1 + 4 = 14 2. Multiply the sum obtained in Step 1 by 3. 3 x 14 = 42 3. Again, starting at the left, sum all the characters in the EVEN positions. 0 + 1 + 3 + 5 + 1 + 1 = 11 4. Add the product of Step 2 to the Sum of Step 3. 42 + 11 = 53 5. The modulo-10 check digit value is the smallest number which when added to the sum of Step 4 produces the next highest multiple of 10. In this example, the next highest multiple of 10 is 60. Adding 7 to 53 equals 60; therefore, 7 is the check digit for this barcode. Note: If the sum in Step 4 is a multiple of 10, the check digit would be zero. (7 + 53 = 60) Check digit is 7 GTIN-14 = 2 00 12345 11114 7 The Danson website contains an automatic check digit calculator at: http://www.dansondecor.com/danson/en/vendor_resources/check_digit_calculator Danson Decor Inc. 2012 10

BARCODING NON-COMPLIANCE Vendors will be held accountable for non-compliance with Danson s barcoding requirements. If your product(s) are not in compliance with Danson s barcoding guidelines, it is vitally important that you take the necessary steps to correct any problem(s) Danson is or will experience in receiving and processing your product. Failure to comply may result in actions taken by Danson for the misapplication of barcodes. Mis-labeled product at the distribution centers will result in labor charges, which will be automatically debited from a vendor s next payment. Additionally, fines may be applied at the sole discretion of the Danson purchasing and compliance teams. Finally, any claims or fines assessed by our customers for noncompliant barcodes resulting from any of the below will be charged back to you without fail. The following barcode infractions are subject to claims or penalties: Failing to apply UPC-A and GTIN-14 barcodes to product as required. Labeling product with incorrect UPC-A and GTIN-14 barcodes. Applying poor quality, non-scannable barcodes. Failing to provide scannable samples of UPC-A and GTIN-14 barcode labels prior to shipment and within stated timeframes. Danson Decor Inc. 2012 11