Page 1

Background for DiscussionGTIN-14 on

DEIG Product Label

Distribution Executives Interest Group

March 9, 2006

Page 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?

Page 3

DEIG Product Label

Page 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

Page 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

Page 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

Page 7

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

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

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

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

A Product Handled by Case

GTIN-14

Page 12

Unit and Carton Identifiers

GTIN-14

UPC(EAN)

Page 13

GTIN-14 Examples In General Retailing

Page 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

Page 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

Page 16

DEIG Product LabelGTIN-14 – 19781234567894

Carton Quantity – 24 (this carton only)

Page 17

Packaging Level IndicatorBook Industry

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

Page 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?