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Improving Operational Efficiency Through Supply Chain Visibility

Posted on by gs1india

The businesses continuously focus on making operations efficient. This blog explains how supply chain visibility across trading partners can help a company improve its operational efficiency and increase profitability.

Content

  • What is Supply Chain Visibility?
  • Application of Supply Chain Visibility
    • Expiry Management
    • Inventory Reconciliation
    • Efficient Sales Forecasting
    • Product Recall
    • Restructuring Supply Chains
  • How to achieve Supply Chain Visibility?
  • Conclusion and Way Forward

What is Supply Chain Visibility?

Supply chain visibility refers to the ability of a business to know the details of the products available at each node in the supply chain, like a warehouse or a distribution centre. This includes accessing data about the number of products, their batches, manufacturing and expiry dates, etc.

Why Supply Chain Visibility is important?

Every business has a supply chain. It helps raw materials get to the factory and move products from the factory to the end consumers. In the global economy, supply chains are long, complex, and global. In a classic example, software from Bengaluru is embedded in a chip from Taiwan, which is put into a mobile in Noida along with other parts from Malaysia. The mobile is shipped to a customer in Vadodara via a warehouse in Ahmedabad.  This is a complex supply chain involving many entities across different countries. The brand needs to have end-to-end visibility of the supply chain in order to efficiently manage its operations.

Inventory visibility at different nodes in the supply chain is important for businesses for expiry management, recall management, sales forecasting, and planning operations better, among many others. Once the business has end-to-end supply chain visibility, it can take measures to improve operational efficiency. Let’s explore various applications of supply chain visibility.

Expiry Management

All products have a defined shelf life. Depending on the type of product, it could be as short as a day for perishable foods, to a few years for some products, for example in case of cosmetics. Businesses need to implement expiry management processes to prevent losses. Without expiry management processes, a company could have a large number of items returned unsold due to expiry or near to expiry dates.

The businesses usually use a First Expiry First Out (FEFO) principle to reduce losses. To implement this effectively, they have to track the batches of the products as they are produced and released to the supply chain.

With inventory visibility, a business will know which batch of product is at which node in the supply chain. They would know the expiry date of all the products, enabling speedy movement of products, which are close to the expiry by giving some discounts, promotions, etc., if required.

Inventory Reconciliation

Businesses with complex supply chains would have products in different warehouses and with different trading partners throughout the supply chain. The number of products in the warehouses could be mapped in an inventory management system.

Real-time inventory visibility in the supply chain helps in inventory reconciliation. It can help in identifying and minimizing stock deficiencies, improving processes and preventing losses.

This can also help in reconciling mismatches between physical and system inventory. Furthermore, historical inventory data can help in determining the source of mismatch and correcting the same.

Efficient Sales Forecasting

Inventory visibility can help in sales forecasting. A company can get information on how fast a product is being sold and can adjust the production rate to meet the market demand. It also upgrades the readiness of the company to tackle unforeseen situations.

The company can also look at historical data of inventory of the product to forecast how the product sales would be in the coming months. If the inventory is running low, they can forecast and order more quantity to meet future demands.

Product Recall

Sometimes businesses are forced to recall or withdraw a product because of some unforeseen circumstances. The recall may be voluntary or because of a demand by the government.

Usually, product recalls are done at the batch level. To execute the same, brand owner must be aware of which batch of the product is available at which location in the supply chain. This is achieved through inventory visibility. Once the location of the faulty batches of products is ascertained, they can be recalled efficiently.

Restructuring of Supply Chain

Businesses have to continuously deal with dynamic situations. The supply chains should be flexible in order to resolve any situation. For example, there could be a sudden spike in demand for a product at a given location or a particular warehouse may become out of operation because of a natural disaster.

In such cases, real-time end-to-end supply chain visibility is helpful for the business to know from where it can divert the excess stock to fulfil the sudden spike.

How to achieve Supply Chain Visibility?

A company can achieve supply chain visibility using track and trace solutions. The first step is to get a unique identifier for each product SKU. They can use a Global Trade Identifier Number (GTIN) for product identification. GTINs are a globally unique product identifier issued by GS1. The GTIN can be encoded in barcodes and they can be printed on product packaging. The company can also use secondary and tertiary level barcodes for the unique identification of cartons and shipping containers.

When the products enter or leave the warehouse, the barcodes can be scanned and the data can be entered (with accuracy and in no time) in the inventory management system. The inventory management system can calculate the number of products using the scan data.

The company can use traceability solution like DataKart Trace to implement end-to-end inventory visibility in the supply chain. DataKart Trace is a seamless supply chain traceability solution that can be used by any industry or for any geography. It gives both upstream and downstream inventory visibility and enables real-time track and trace throughout the supply chain.

Conclusion and Way Forward

With end-to-end supply chain visibility, the company can improve the efficiency of operations. In the case study of Tata Steel, it has a division that sells doors and windows under the brand Tata Pravesh. They have a very complex supply chain. The supply chain includes multiple manufacturers, distributors and installation agencies, with more than 50 partners involved in all the transactions. They use the end-to-end traceability and supply chain visibility system of DataKart Trace from GS1 India to manage this complex supply chain.

Every company will have to determine how it wants to implement supply chain visibility. The solution would depend on the complexity of the supply chain, the number of products the company has, the shelf life of the products etc. The company can start with a simple barcoding solution. It can also work with GS1 India to develop more customized solutions which focus on the specific needs of the company. This could include other technology solutions like RFID tags and block chain.

The way forward for every company is to start investing in supply chain visibility solutions. This would help in improving the efficiency of the supply chain and increase the profitability of the company.

All You Need to Know About Barcoding

Posted on by Nitesh Agrawal

Getting Started with Barcoding

This blog will give you an overview about product barcodes, types of barcodes, benefits of barcodes, and how GS1 India can ensure that you get unique identification for your products.


Contents:

  • What are Barcodes?
  • Types of Barcodes
  • Unique Barcode Numbers – GTIN
  • Benefits of unique barcode numbers
  • Role of GS1 India in ensuring uniqueness in product codes barcode


Barcodes play a very crucial role in a country’s economy, especially in the context of supply chain management and retail. Most of the businesses require Barcodes as a tool to manage supply chains for better tracking of their products. You must have noticed that every time we buy something in the supermarket, the seller scans the barcode on the product to retrieve its information.


What are Barcodes?

Today most of the products you see in the market have barcodes. Barcodes are machine-readable symbols which are printed on product packaging. The barcodes are embedded with barcode numbers – numeric codes that give unique identification to the product.


Types of Barcodes

There are various types of barcodes used in the industry. Some popular barcode forms are EAN barcode (linear/1-dimensional barcode), QR code, and Datamatrix (2-dimensional barcodes).

EAN barcodes are mostly used on products for point-of-sale scanning, where the unique code embedded in barcodes is linked with product information like manufacturing and expiry date, manufacturing locations, product attributes, and ingredients, etc. QR codes are majorly used in applications related to entertainment, retail, advertisement, and transactions.

One-dimensional (1D) barcodes / linear barcodes

One-dimensional barcodes also known as Linear barcodes convert data with varying-width vertical lines and spaces, it reads horizontally, and accommodates up to 85 characters, but requires more characters for additional data.

Some of the common examples of 1D Barcodes are explained briefly below –

  • Code 39 – CODE 39 barcodes can encode up to 43 characters, including letters, numbers, and some symbols, making it essential for industrial applications like automotive and electronics.
  • Code 93 – CODE 93 is an updated and fully secured version of Code 39 barcodes which is able to read both letters and numbers. To encode special delivery information, these barcodes are used in fields like Military, and automotive sectors.
  • GS1–128 – GS1-128 Barcodes are the barcodes mainly used for the shipping process among retailers. These barcodes are the standard barcodes that provide a lot of data and also the meaning of data throughout the supply chain.
  • EAN (European Article Number) – EAN (European Article Number) is the barcode numbers generated by a standardized body known as GS1. The barcodes are used to identify the products in the supply chain and help you to sell on various e-commerce platforms. It is usually 8 or 13 digits long, and globally accepted.
  • UPC – UPC (Universal Product Code) are the barcode numbers that help identify a product, uniquely. They are most commonly used in Inventory Management, and they also help in minimizing errors in order fulfillment.

There are many more linear barcodes available such as Codabar, ITF, Industrial 2 of 5, Standard 2 of 5 (IATA), MSI Plessey, and Intelligent Mail Barcode, etc.

Two-dimensional (2D) barcodes/matrix codes

A two-dimensional (2D) barcode converts data using dots, squares, and shapes, storing information both vertically and horizontally. It’s ideal for web addresses, text, images, and coupons, and is also very capable of holding up to 7,089 characters.

  • PDF417: PDF417 is a 2D Barcode, used in a variety of applications such as transport, inventory management, and identification cards.
  • Data Matrix: A Data Matrix is a 2D code having black and white dots arranged in a square/rectangular pattern, known as a matrix. The information encoded in this matrix can be text or numeric data.
  • QR Code: QR code (Quick Response Code) is a two-dimensional Barcode that can be easily read with the help of a digital device. They are used to track the information of the products in a supply chain and also used in marketing & advertising campaigns.

There are many more 2D barcodes available such as PPN, Royal Mail Mailmark, Aztec Code, GiroCode, Swiss QR Code, etc.


Unique Barcode Numbers – GTIN

The barcodes on products are embedded with unique numbers called Global Trade Identification Number (GTIN). These identification numbers are issued by GS1 – a global standards organization that creates standards for barcoding.

Globally, 4 types of barcode numbers based on the number of digits are used (GTIN-8, GTIN-12, GTIN-13, GTIN-14). In India, the most commonly used barcode number is GTIN-13 (also known as European Article Number EAN-13).

By providing GTIN unique identification to the trade items, GTINs help avoid duplicity of the barcode, enabling product authentication.


number-structure


Benefits of unique barcode numbers

There are many benefits of having GTINs

  • Uniquely identify each product SKU
  • Key to Master Data Management
  • Globally accepted by e-commerce portals and leading retailers
  • Facilitate efficient and error-free ordering
  • Enables 40% better visibility of product pages through Google search
  • Comply with regulatory requirements set by regulatory bodies like FSSAI, FDA, EMA, AGMARK, etc.
  • Facilitates product authentication and counterfeit detection


Role of GS1 India in ensuring uniqueness in product codes

GS1 is a global standards organization. They provide barcoding solutions to companies. GS1 Global oversees the operations of 115 GS1 organisations across the globe.

GS1 global along with its various member organizations, including GS1 India, maintains the integrity of GS1 barcode numbers. Since the GTINs are the global identity of your products, GS1 organizations across the globe ensure that this remains unique. With over 2 million companies using GS1 barcodes, it has become a de facto standard for the retail industry worldwide.

In India, GS1 India is the only authorized body to issue GTIN and GS1 barcodes. It is an ISO 27001-certified company. It was set up under the Ministry of Trade and commerce, the government of India, as a non-profit organization.

The barcode numbers issued by GS1 India start with the number ‘890’, which is the country code for barcode numbers allocated by GS1 India.

You can avail of authenticated barcode numbers from GS1 India at different prices depending upon the number of barcodes required and the years of subscription associated with the barcode numbers. You can register with GS1 India, follow some predefined steps and GS1 India will help you design and create barcodes that suit your business needs.

Over the past two and a half decades, GS1 India has improved customer experience through the use of barcodes and related services like Traceability, Master Data Management (MDM), etc. Apart from issuing barcodes, GS1 India also provides standards-based services to optimize your supply chain operations. These include

To know more, contact GS1 India


Frequently Asked Questions

1. What are the most common barcode types?

Common barcode types like UPC, QR codes, and Code 39, etc simplify inventory management, tracking, and product identification in retail and other industries.

2. What barcode types are 12-digit?

UPC-A Barcodes have 12 Digits, which include 11 digits encoding product data, country, and company code and one check digit for accuracy verification in the end. UPC barcodes can only be represented numerically, the code can only be the digits from 0-9.

3. What is the difference between EAN-8 and EAN-13?

The EAN 13 barcode is for consumer products at checkout, identified by a GTIN-13 or variable weight code. EAN-8, with GTIN-8, is for small items with limited space, like lipstick.

4. What does the barcode stand for?

A barcode is a machine-readable code consisting of numbers and parallel lines of varying widths, used to control products and especially used in stock management.

5. How is a barcode generated?

In India, barcodes are generated in partnership with GS1 India, an official standard body that plays a pivotal role in standardizing and managing barcodes, ensuring uniformity and efficiency in the business landscape.

6. Is QR code a barcode?

A QR code is an efficient and user-friendly barcode that stores information in a square-shaped grid of pixels, easily readable by digital devices.

7. What is the code 128 A?

Code 128 A, defined in ISO/IEC 15417:2007, is a high-density linear barcode used for alphanumeric or numeric-only data.

Importance of Barcodes in e-Commerce Operations: Amazon’s Example

Posted on by Nitesh Agrawal

This blog gives an overview of the importance of barcodes in e-Commerce marketplace operations and supply chain processes.

Content

  • Introduction
  • Supply Chain Management
  • Supplier Relationship Management
    • Fulfilment by Amazon
    • Fulfilment by Merchant
  • Internal Supply Chain Management
  • Customer Relationship Management
  • Conclusion

Introduction

Amazon is a major e-commerce marketplace in India. Its operating revenue from e-commerce sales in India was Rs162 billion in March 2021. As per a report published by Inc42 in 2021, it has more than 850 thousand sellers selling 50 million+ products to 100 million+ users in India. This blog focusses on how barcodes help Amazon in its supply chain operations.

Supply Chain Management

As an e-commerce marketplace, Amazon has a very complex supply chain. It has to get the products from its vendors, manage warehouse operations, and supply to the customers when they order the product.

The entire supply chain management can be divided into three domains viz. Supplier Relationship Management, Internal Supply Chain Management, and Customer Relationship Management.

Supplier Relationship Management: 

Supplier Relationship Management (SRM) is an approach to systematically access the contribution of suppliers in the business. It helps to improve business processes by coordination and evaluation.

Barcodes make the order receiving process accurate, scalable, fast, and traceable, thereby helping Amazon Marketplace manage supplier relationships. 

There are two modes of listing products on Amazon, viz. — Fulfilment by Amazon (FBA) and Fulfilment by Merchant (FBM).

Fulfilment by Amazon (FBA)

FBA is the business model that helps suppliers and business owners use Amazon’s vast logistics network spread across India to deliver products to customers.

Sellers list their products on Amazon and then ship them to Amazon fulfilment centres for further processing.

At the Amazon fulfilment centre, the following inbound processes take place.

  1. Each product is received by the inbound team
  2. Each product has a unique barcode called Amazon Standard Identification Number (ASIN), which is linked with GTIN
  3. The ASIN is scanned and the product is stowed in mobile storage pods
  4. These storage pods are moved from one location to another using automated robots
  5. Details of the product, including quantity and which storage pod the product is stored in, is recorded in Amazon’s inventory system.

When a consumer orders a product the following outbound processes take place.

  1. The Amazon inventory system checks and locates the storage pod where the item is stored
  2. The storage pod is moved by robots to the pick station
  3. An associate picks the item and places it in a tray which is transported to packing station via conveyer belts
  4. The items are packed, and a barcode is placed on the package
  5. The package is sent via conveyer belt to a SLAM (Scan, Label, Apply and Manifest) station
  6. The system scans the barcode, and prints and applies the consumer address on the package.
  7. The package is then shipped to the consumer.

Fulfilment by Merchant (FBM)

In FBM, the merchant is responsible for handling and shipping products. While Amazon acts as a platform to sell the product, the seller directly ships them to the final customer.

Amazon encourages third-party sellers to use Global Trade Identification Numbers (GTIN) to uniquely identify the products when they want to list the products on Amazon. The GTIN is a globally unique identification number for a product, issued by GS1 organisations across the globe. The sellers can use GTIN (EAN Product Codes) to identify the products and manage the master data for all their products. They can use DataKart to easily share product attributes with Amazon for listing on the platform or pull the data in required format and share it externally.

Internal Supply Chain Management:

Internal supply chain management refers to the functions such as sales, distribution, inventory keeping, and warehouse management, etc.

Amazon uses ASIN to improve efficiency of its supply chain. This enables

  • Data entry in the inventory system
  • Reconciliation of physical and system inventory
  • Enabling automation in warehouses
    • Barcodes are scanned while storing and retrieving items
    • Barcode scans are used to move items on correct conveyer belts
    • Package barcodes are scanned for labelling of packages for shipment
  • Reduce processing time
  • Improved data accuracy

Customer Relationship Management:

Customer Relationship Management (CRM) is used to manage a company’s relationships and interactions with current and future customers to improve business relations.

The consumers get a better shopping experience while browsing on e-commerce sites as they are able to easily view products which are similar to their previous searches and purchases. This improves consumer loyalty for the company and generates positive word of mouth which results in higher profitability.

The use of ASIN facilitates better consumer relationship management.

  • Marketplaces can tailor display of product categories, based on prior order/search history of user
  • A consumer can scan the product barcode (GTIN) on the product to directly order the item from the Amazon app
  • ASIN and barcodes can be used for hassle-free tracking of orders
  • ASIN can be used as product identifiers while interacting with consumer care team

Conclusion

Amazon has showcased how unique barcodes encoded with unique product identification facilitate world-class warehousing solutions, inventory management, product visibility, effortless product tracing, and efficient supply chain management. Other marketplaces are also adopting barcodes (GTINs) to improve their operations.

How to Generate GTIN Barcodes: A Quick Guide

Posted on by Nitesh Agrawal

Quick Guide to Generate GTIN Barcodes

E-commerce websites, like Amazon, Big Basket and others require sellers to enter product IDs/GTINs to get listed on their shopping portal. GS1 India allocates GTINs, which can be generated through DataKart (MDM system that enables the online generation and management of GTINs).

This blog is a quick guide which will help companies and brand owners generate GTINs or GS1 barcode numbers for their products.

Contents:

  • Register with GS1 India
  • Login to DataKart
  • Get GTIN allocation
  • Download Barcodes for printing

Steps to Generate GTIN

The steps to generate GTIN are given below.

Register with GS1 India

In case you want to sell your products or services through an online platform then you can issue a request to GS1 India for allocation of GTIN. In fact, once you are registered with GS1 India or any other authorized GS1 organization, you can create any of the GS1 ID keys using your subscription number.

GS1 India is the only authorized body in India to allocate these barcode numbers. If you are not registered yet, the first step is registering with GS1 India.

For registration, fill out an online form by visiting GS1 India website.

barcode registration form

While filling out the form, it is important to carefully select the ‘number of product barcodes’ based on your both current and future requirements for barcode numbers. This is because when any change occurs to your product (in net content, ingredients, pack size, etc.) or a new one gets introduced (promotional variants/new products), you would be required to change the barcode number on the same.

This must be taken into account while deciding for the barcode number capacity since it’s not possible to upgrade the selected capacity after registration. In such cases, you would need to apply a fresh registration by paying the applicable registration and annual fee at that time

The GTINs are available in batches of 100, 1000, 10,000 and 100,000.

After filling in the required details and attaching the required company documents, pay the required fees using payment options. Once this process is completed, you will receive your barcode subscription allotment letter in 4-7 working days.

Login to DataKart

Use the credentials given in your GTIN allocation letter to log in to DataKart portal.

Datakart login

  • After logging in to DataKart, click on the ‘Create Product Data’ icon on your DataKart home.

create product data

  • The ‘Create Product Data’ screen will appear, with GTIN as a prefilled value and different product attributes as blank fields. You may take a note of this GTIN.

product data creation

Get GTIN

To assign a GTIN number allocated to your product, add the product attributes and hit ‘Save & Publish’ towards the end.

In DataKart, you may either add data of a product individually or in bulk. If you have a large number of products you can download an Excel template, put the details in the template, and upload the same.

Once done, GTIN numbers get allocated to your products.

For help, visit the ‘Knowledge Centre’ under ‘Resources’, or seek support by visiting the ‘Support’ link under ‘Resources’.

support related resources

In case, you get stuck at readily available product images, download GS1 India’s ClickIt mobile app from Google PlayStore to capture e-commerce-ready product images from your mobile phone.

Download barcode images for packaging artwork

From DataKart home, click on ‘Generate and Print Barcodes’ and go to the ‘SKU’ option. Select the Product Name and Output File Type, and click ‘Generate’.

generate and print barcodes

DataKart also enables you to print barcodes for your cartons and pallets, logistic labels, etc.

Why Buy GTINs from GS1 India?

Posted on by Nitesh Agrawal

With the increasing business and supply chain complexities, it is becoming essential to get barcode numbers for unique identification and better visibility of products. In barcodes, this unique code is encrypted and can be scanned electronically using laser or camera-based scanners. Organizations use product barcodes to attain multiple objectives such as maximized cost efficiency and minimized response time. In supply chain management, it is referred to as the responsiveness-efficiency frontier, where organizations struggle to provide low-cost solutions with the minimum delivery time to their customers.  Barcodes make the supply chain faster and help lower the overall supply chain cost, which otherwise is difficult to manage in global and competitive scenarios.

Barcode numbers can be generated from many online websites free of cost, but they can create several issues, such as duplicate codes for multiple products, multiple codes for a single product, and more importantly, they cannot be read and understood by all trading partners. Such codes are not unique, making back-tracing much more difficult. Moreover, these locally generated barcodes cannot be validated universally. Hence, it is essential to buy barcodes from a licensed body such as GS1 India. GS1 India enables product data entry of only authorized GTINs to the national repository, DataKart. Further, using GS1 barcode numbers can also lead to higher product visibility to brand owners/ manufacturers through search engines by using GTINs (GS1 barcode numbers) in the coding of product pages.  

A large percentage of products in the market are without GTINs. However, listing the products without GTINs can invite many issues as most of the e-commerce websites and retailers need a unique product code, which can be authenticated. This helps them list products uniquely and manage their internal processes such as ordering, invoicing, despatch, receipts, etc.  Hence, e-commerce platforms, such as Amazon, Flipkart, BigBasket, etc., require brand owners to share GTINs to list their products on websites. 

GS1 India is the only authorized body and a standards organisation in India issuing GS1 barcode numbers.  GS1 issues and manages unique product code (UPC)/ Global Trade Identification Number (GTIN) for all trade items worldwide. GTIN can be linked to information such as product specifications, serial and product number, manufacturing details, source of origin, order status, destination details, etc. Thus, barcodes ensure unique identification for products and facilitate easy tracking at any point of the supply chain. They also enable product validation by retailers and e-tailers. For example, Amazon India uses GS1 India’s GTIN validation service for listing products on its site.

DataKart is the national product information repository, hosting information on over 14 million products. It stores all product-related information that can be assessed at any time by brand owners, retailers and online marketplaces. DataKart helps its users meet several requirements such as expediting the product listing process, generating product and carton barcodes, sharing product changes with retailers/e-tailers, etc., that are crucial in the B2B, B2G, B2C space. It also helps brand owners gain global reach by sharing information in the global product data repository. DataKart allows easy knowledge management by allowing API integration with various retail software and provides implementation and operational support.

With DataKart, manufacturers can also directly connect with their consumers through the Smart Consumer mobile app which enables them to share detailed product information to its consumers by scanning the GS1 barcode numbers (GTINs) on product packaging.

Set up by the Ministry of Commerce and Industry, Government of India, along with other apex trade bodies, GS1 India is a standards organization that provides a B2B platform for the industry to connect together. With their GTINs issuance and traceability services, GS1 India will help you adopt global standards in your supply chain to enhance efficiency and profitability.

Is It Possible to Launch Products Without a Barcode?

Posted on by Nitesh Agrawal

In recent decades, barcodes have been leveraged in both the brick-and-mortar and e-commerce industries. The barcode encodes a unique identification number, which is issued and maintained by GS1, a global supply chain standards organization present in 115 countries globally. With Global Trade Identity Number (GTIN), GS1 provides unique product identification that brings efficiency to various supply chain and retail processes.

Barcoding is a fundamental building block for creating an infrastructure that is used across various supply chains, be it warehouse management, quality control, or product tracking till it reaches the final customer. With GTIN becoming a need with the evolving e-commerce system, the database that it creates has upsurged data analytics for gaining business insights. Listing the product with barcode number on an e-commerce website or any other marketplace makes the process much more convenient.

However, if you don’t have a barcode, can you still launch your product in the market? Yes, of course. In this post, we have addressed this question, which has gained prominent traction, especially from local manufacturers selling handicrafts, artifacts, and homemade products, who think barcoding costs are significantly higher owing to their low business turnover.

The necessity of GTINs depends upon the product category. Though many products can be sold through e-commerce platforms without GTINs, there are a few categories for which GTINs are mandatory. Big marketplaces such as Amazon, and Flipkart ask for GTIN to list your product on their platform; however, if you do not have it, they also provide an alternative for launching your products. While it is possible to launch your product without a barcode, the alternatives depend upon the product category and the associated brand. Let us have a look at how you can launch your product without a barcode.

  • If the Product category is already listed on Amazon: If the category for your product already exists on their site, you don’t require a GTIN to launch your product. You can link your product with Amazon Standard Identification Number (ASIN) by using it as your product ID.

    ASIN is a unique identity given by Amazon to almost all the products listed on Amazon for its identification.

  • If the product category does not exist: If your product does not fit into the existing categories, you can apply for a GTIN (EAN/UPC) exemption through their seller central login page. This is ideal when your product is homemade and non-branded and if you are selling products or a combination of products (Bundles) having no GTINs (barcode numbers). GTIN exemption can be done with and without a brand registry.Having a brand registry does not give you a GTIN exemption but having a GTIN exemption can allow you to launch your product without a brand registry. You will be required to choose a product category and name the brand for your product. Further, you will need to produce a brand support letter authorizing your product and confirmation that it does not have a GTIN.GTIN (EAN/UPC) exemption does not offer a lifetime of validity for your product to be listed on the platform, and you have to reapply for it after every month. The process of GTIN (EAN/UPC) exemption itself is very slow, and you can expect a request completion time of 30 days.

Hence, to save yourself from these hassles, it is recommended for every entrepreneur or potential entrepreneur/business while launching their products should have GTINs in place as it saves companies money while improving quality, on-time performance, and other key business factors.

EAN 13 – The Barcode Number

Posted on by Nitesh Agrawal

European Article Numbering Code (EAN) is a series of numbers in a unique order that helps identify specific products and is used to list products for retail businesses.

An EAN-13 barcode (originally European Article Number), but now renamed GTIN (Global Trade Item Number) even though the abbreviation EAN has been still used by retailers) is a 13-digit (12 data and 1 check) barcoding standard. The EAN-13 barcode is used worldwide for marking products often sold at retail points of sale. The numbers encoded in EAN-13 barcodes are product identification numbers.

What is GTIN (EAN)?

GTIN (Global Trade Item Number) is a system developed by the GS1 and is an internationally recognized system for identifying products. It is a blanket term to describe various GS1 numbering codes – UPC and EAN. It is, hence, safe to term an EAN-13 code as a GTIN-13. GTIN provides the global supply chain solution for the identification of any item that is traded (priced, ordered, and invoiced).

Types of GTIN

GTIN includes four types of codes:

  • UPC-12: The twelve-digit code that North America uses.
  • EAN-8: The eight-digit code used on smaller retail trade items.
  • EAN-13: The thirteen-digit code for all other countries.
  • GTIN-14: The fourteen-digit number used on general distribution trade items, not intended to be sold at the Point-of-Sale.

To create a GTIN, a company needs to be in possession of a GS1 company prefix. The assigned company prefix forms the base for the creation of all GS1 identifiers like GLN, GTIN, and SSCC numbers.

Why EAN-13 Barcode?

The advent of the EAN-13 barcode is a data structure stepping-stone toward supply chain control. It is used in global trade to distinguish product type, specification, etc. In other words, it helps the product be uniquely identified. It is a numeric-only barcode system used for the identification of retail products. Unique numbers are allocated to each separate retail product, not just by product brand but by unique numbers. This assists in positing the products with retailers and e-commerce companies. It facilitates a future where intelligent workflows will fuel data-driven smart supply chains.

The future smarter supply chains continue to not just embrace automation with the help of the EAN -13 barcode, but also use AI to make processes more efficient, responsive, and adaptive. Most importantly the visibility and traceability solutions in the supply chain have gained momentum, these are the “twin engines of a sustainable” supply chain.

The EAN-13 barcode has withstood the test of time because it continues to serve a key role in the evolving digital future of retail where the product is identified uniquely and the data it captures will shape decisions affecting customers and retailers.

Components of an EAN-13 Barcode Number

The first three digits of the EAN-13 serve as the GS1 Prefix. The GS1 prefix usually identifies the GS1 Member Organization which the manufacturer has joined.

The Manufacturer Code is a unique code assigned to each manufacturer by the numbering authority and all products made by a certain company use the same manufacturer code. The product code is a unique code assigned solely by the manufacturer.

The check digit is the last number used to confirm if a barcode was scanned correctly. This additional number is mathematically determined through an algebraic equation to create a check sum.

Barcodes Revolutionising the World

Barcode is worldwide used; its popularity can be attested by its use in all parts of our life. A barcode reader is an optical machine-readable representation of data relating to the object to which it is attached.

The EAN-13 barcodes are used worldwide for marking products often sold at retail points of sale. The numbers encoded in EAN-13 barcodes are product identification numbers. All the numbers encoded in UPC and EAN barcodes are known as Global Trade Item Numbers (GTIN), and they can be encoded in other GS1 barcodes.

EAN-13 is popular, recognizable, and useful for general day-to-day retail transactions since it can be read by any barcode reader. The check number also helps ensure accuracy when entering the code by hand. It combines numbers together mathematically in a certain way to get a specific, one-digit outcome. If the check digit does not match that outcome, then the code has been entered incorrectly.

Additional Benefits of GTIN

Barcode numbers play a crucial role in supply chains, including selling products over the counter and listing them on e-commerce websites. Various national and international regulatory bodies have endorsed the use of GS1 barcodes on products. The use of GS1 barcode numbers (GTINs) helps you in complying with various requirements, including those of the Ministry of Consumer Affairs, DGFT, US FDA, Ministry of Health & Family Welfare, Delhi Excise EU Regulations on UDI, and more. GS1 barcode numbers on your products enable you to list your products faster with leading retailers and online shopping portals. GS1 barcode numbers, when used on a product webpage, show a 40% improvement in search results. GS1’s DataKart service enables free and easy barcode number management and the generation of barcode images.

Why Buy EAN from GS1 India?

  • GS1 India is the only authorized body in India to issue GS1 barcode numbers.
  • If your label your products with authentic GS1 barcodes (bought from GS1 India), your products will be visible through various GS1 repositories, including Verified by GS1, GEPIR, GS1 DataKart, etc.
  • You will get access to GS1 DataKart, the national repository of product information for retail items.
  • Your product information would be visible to consumers through Smart Consumer mobile app, which is accessed by millions of consumers
  • You would get implementation assistance at every step of the process
  • You would get assistance in uploading information on your old products to DataKart
  • You would get complimentary access to an imaging app, to click retail-ready photos of your products using your phone.

The Future

For the last 20 years, barcode technology has been the bastion of bigger businesses that adopted the technology to massively reduce human errors and increase efficiency in business operations.

Today, barcodes are completely integrated into mainstream life—nearly every product in a grocery, department, or mass merchandise store bears a barcode. It’s clear that this technology works, and will continue to do so.

If you already understand the needs of your partners and customers, choosing how to serve those needs most efficiently is where GS1 India can help.

All you need to do is connect with the GS1 India team to learn more about how GS1 standards can support your needs. As it continues to provide leadership, guidance, and support for on-pack solutions that allow businesses to adapt and scale over time, aligning with GS1 India will offer you a plethora of tools and abundant globally aligned guidance to help your business along this journey.

Common Mistakes Made While Printing the Product Barcode

Posted on by Nitesh Agrawal

To be able to sell products in the retail market, manufacturers & brand owners need to affix barcode labels on their products or include barcodes into the product packaging. These 13-digit GTIN numbers printed on product labels/packaging help in uniquely identifying products, and thus, facilitate in its tracking and tracing, inventory management, and product recall if required.

Hence, it is essential for every brand owner to print barcodes accurately to enable efficient scanning with different barcode scanners and in different scanning environments.

In this blog, we are listing some common mistakes that companies make while printing barcodes on their products, which lead to compromised scanning efficiency

  • Light margins/white space is required around the barcode for scanners to read them efficiently. Most companies leave smaller white space than required around the barcode symbol.
  • Since product packaging is small and manufacturers need to convey too much information through it, generally this leads to shortening of barcodes. Check GS1 General Specification for prescribed barcode height on product packaging.
  • Use of incorrect colour combination also leads to poor scanning. Barcode bars should always be of dark colour on white or lighter background. Use of transparent or semitransparent substrates, such as glass or plastic will lead to poor scanning.
  • Printing of barcodes, which are either too large or too small, also adds to problems
  • Incorrect adjustment for ink spread
  • Stretching/compressing barcode symbol horizontally, leading to too wide/too narrow barcode bars
  • Placing labels too close to vertical corners or placing barcodes too close to the edge
  • Peeling and creased labels
  • Using uncovered metal surfaces as a background or for the bars of a symbol. The specular reflectance of the substrate can cause problems
  • Use of the same GTINs on different product lines / SKUs also adds to confusion for retailer/supply chain traders. This defeats the entire purpose of uniquely identifying objects and capturing this identity in the form of barcodes for efficient reading.

Hence, it is crucial for manufacturing companies to follow barcode printing requirements to ensure that the product barcodes can be scanned, wherever required.

Learn more about things to consider when printing and creating barcodes.

Get your barcodes tested

Before bulk printing of product packages, it makes sense for organisations to get their sample product packaging with barcode tested to ensure their scannability.

GS1, a global standards organization, helps businesses to barcode their products with unique identification keys. It also runs a service for brand owners that helps them test their barcodes before bulk printing of product labels.

At the completion of testing, a detailed barcode verification report is provided by GS1 India, which includes recommendations for changes, if necessary. GS1 verification reports are accepted by retailers globally and are a prerequisite for acceptance of products by many.

To know more about this service, visit: https://gs1india.org/content/barcode-verification

What is a 13-Digit GTIN Number and Why Is It Important for a Retail Product?

Posted on by Nitesh Agrawal

Global Trade Item Number (GTIN) can be used by a company to uniquely identify all of its trade items. GS1 defines trade items as products or services that are priced, ordered or invoiced at any point in the supply chain.

If you’re planning to sell your products in a retail market and want to ensure its effective movement in the supply chain, you need to have a 13-digit GTIN number encoded in the barcode of your product.

Let’s understand what GTIN is and why it is important for your products.

What is GTIN and Why is it important for your products?

Global Trade Item Number (GTIN) is an internationally recognized code to identify trade items that uniquely identify products globally and fetch accurate and efficient product information when scanned at the billing counters in a store or at a warehouse when receiving goods.

GTINs are also used in pharmaceutical drugs, where they are scanned while administering medication in a hospital to enhance patient safety or scanned while effecting receiving or dispatches at hospital store to maintain inventory, ensure faster processing.

Most commonly used GTINs are 13 digits code, known also as EAN code. Also, there are several different types of GTINs used on products. This includes:

  • GTIN 12: The GTIN-12 is encoded in UPC barcodes, which are predominantly used only in America and Canada. However, North American and Canadian companies have steadily been updating retail Point-of-Sale systems to be able to scan GTIN-13 and GTIN-8. If your trading partner still cannot scan these numbers, only then you will need to use a GTIN-12.

  • GTIN 13: European Article Number (EAN); 13 digit code used in the rest of the world including India. GTIN 13 (barcode number) in India starts with 890.

  • GTIN 8: Allows a smaller barcode to be used on smaller retail trade items.

  • GTIN 14: Used on general distribution trade items, not intended to be sold at the Point-of-Sale.

All GTINs, irrespective of their different digits or codes, have a similar structure under which each GTIN digit is made up of 4 components. The first component is Country Code which varies from country to country; the second part is Company Prefix, the length of which is functioned according to the company’s coding needs; the third component is Product Code, which is assigned by the brand owner to uniquely identify the product and the fourth component of GTIN is Check Digit, which is based on the previous digits and ensures that the GTIN is constructed properly.

Where are GTINs used? 

GTINs are used in various aspects, especially where a product needs identification. That also includes IT systems, physical entities, etc. GS1 Standards define how to format and structure the GTIN in various applications so that the same GTIN can be used to identify the product for any of those needs.

  • Physical products: GTINs can be encoded into both barcodes and RFID tags along with the serial number and affixed to products to facilitate accurate identification as products move along with the supply chain.

  • Business transactions: GTIN can be used in e-commerce business transactions in order to reduce errors and boost machine-to-machine processing.

  • Internet applications: They can be represented as a Uniform Resource Identifier (URI) using GS1 Digital Link to support internet-based applications. 

  • Databases & IT systems: GTIN can provide each product an identifier that can be used in systems like inventory management, logistics, etc, that helps to maintain the connection between the systems to enhance the quality and amount of data.

Benefits of labelling your product

By identifying your products with a GTIN number, you can:

- Gain increased visibility of your product pages in Google searches

GTIN numbers when also used in product pages help you achieve better SEO results by improving the visibility of your product pages in Google search results.

According to Google, database sheets with GTIN codes are classified at a 40 percent higher click rate and earn 20 percent more sales.

- Free barcode management through DataKart service

With a GTIN number on the product, you can easily assign and manage your GTIN numbers through free access to GS1 India’s DataKart service. It will allow brand owners to upload product information from a one centralized location and its advanced features enable sharing the product data with multiple suppliers in one go in their respective native file formats/structures.

- Facilitate exports of your product worldwide

As GTIN numbers are internationally recognized, you can easily export your products across the globe with GTIN numbers, eliminating the need to identify your products differently for export purposes.

GTIN Structure

GTIN Structure includes a string of digits, it can be 8,12,13, or 14 digits in length to accommodate different product limitations. Depending on the length these structures are known as GTIN-8, GTIN-12, GTIN-13, and GTIN-14. The GTIN usually has the following elements:

  • Indicator Digit: Indicator Digit is a number that ranges from 1-8, that is used to identify packaging levels/hierarchy of a product.

  • GS1 Company Prefix: A globally unique number assigned to a company by a GS1 Member organisation in order to generate GS1 Identification keys like GTINs.

  • Item Reference: An Item Reference number, that has no logical explanation, it is just a number assigned by the user itself to identify a trade item. It’s length is based on GS1 company Prefix Length.

  • Check digit: The Check Digit is the last or final digit calculated from the preceding digits of the GTIN number. This digit is extremely important as this is used to check that the data is correctly collected.

GS1 and GTIN

If you want your product to be recognized in the marketplace, you need to have a GTIN code on the back of it, encoded in a barcode/RFID. GS1 – the global supply chain standards organisation, provides unique and universal identification to products through GTIN.

GTINs can also be used to uniquely identify products at different packaging levels; for instance- at the customer unit level, at the inner pack of the product, and at the carton/pallet.

After realizing the importance of GTINs in the supply chain, mostly all the brand owners are now labelling GTINs on their products to boost their visibility in the marketplace so that they can sell their products on various platforms.

Connect with GS1 India and reap all the benefits of GTIN number.

Frequently Asked Questions

1. How do I get a GTIN code?

If you want to sell your products on any e-commerce platform site, then you would have to register your business at GS1 India's official website for the allocation of GTINs. These are generated through their single repository for data of all the products in India - Datakart. This platform enables the online generation of GTINs and the management of all the product information at one place.

2. Is the GTIN code the same as the UPC?

A GTIN code and UPC are not the same in their structure. A GTIN code can have 8,12,13, or 14 digits, while a UPC can only have 12 digits. Another difference between these two is the fact that GTIN codes can be used globally, while UPCs can only be used in North America.

3. What is a 14-digit GTIN barcode?

GTIN-14 is a 14 digit number used to allocate trade items at different packaging levels. The encoding of barcodes of the GTIN-14 basically happens within an ITF-14 barcode, but various industries and applications use GS1-128 to encode GTIN-14s.

4. How do I find my GTIN number for my product?

GTIN also known as Global Trade Item Numbers (GTIN) are used to identify every product sold on any e-commerce site. GTIN is a universal identifier that is found on the product's cover or packaging, either above or below the bar code.

5. Is GTIN different from barcode?

GTIN is a unique identifier number that is used in a barcode. It is the numerical form data, and the UPCs or EANs are the barcode images that contain the GTIN.

6. What is the difference between SKU, EAN and GTIN?

The SKUs are in the form of a series of numbers and letters that can change depending on the inventory of the product in a specific business. EAN is an international identifier in the form of a barcode image that has been involved in the GTIN system.

EPC-RFID Technology and the Industries

Posted on by Nitesh Agrawal

EPC codes, unique digital IDs for products, revolutionise tracking with RFID technology. They improve supply chain efficiency by enabling real-time visibility and inventory management, benefiting various industries.

What is the EPC Code?

The EPC code, or Electronic Product Code, acts like a unique digital fingerprint for a physical product. Imagine it as a serial number on steroids! This globally unique identifier, developed by EPCglobal, leverages RFID technology to allow for wireless tracking. Unlike barcodes that require a direct line of sight, EPC codes can be read from a distance. This translates to major improvements in supply chain efficiency. Businesses can track product movement in real time, gain instant inventory insights, and even combat counterfeiting – all thanks to the power of EPC codes.

Radio Frequency Identification (RFID): What is it?

Radio Frequency Identification (RFID) is a technology that uses radio waves to wirelessly track and identify objects. Imagine tiny tags attached to products. These tags contain an antenna and a microchip. The antenna catches radio waves from a reader device, which then transmits a signal to the microchip. The microchip, in turn, transmits its unique identification data back to the reader.

This allows for contactless, automatic identification, offering several advantages over traditional barcodes. Here are some key benefits of RFID:

  • Faster and more efficient reading
  • Can read multiple tags simultaneously
  • Works without line-of-sight
  • Can store more data than barcodes

Overall, RFID revolutionizes tracking and identification in various industries, from retail and supply chain to access control and asset management.

EPC Operation: RFID Tags and Readers

The way we track products is undergoing a transformation powered by GS1 RFID technology, which utilises EPC (Electronic Product Code) and RFID (Radio Frequency Identification).

Here’s a breakdown of this dynamic duo:

  • EPC (Electronic Product Code): Imagine a unique digital fingerprint for every product. This standardized code, developed by EPC global, allows for global identification of items. Think of it as a supercharged serial number!
  • EPC RFID Tags: Picture tiny stickers with a microchip and antenna. Attached to the product, these tags store the EPC code. These EPC RFID tags are the workhorses of the system, enabling wireless tracking through EPC in RFID technology.
  • RFID Reader: This device emits radio waves. When the tag’s antenna picks them up, it activates, and the microchip transmits the EPC code back to the reader. This wireless communication eliminates the need for line-of-sight scanning, unlike traditional barcodes.
  • This seamless interaction between EPC codes and RFID technology (GS1 RFID) unlocks several benefits:
  • Wireless Reading: No more struggling with line-of-sight limitations like barcodes. GS1 RFID works from a distance, streamlining the tracking process.
  • Real-time Tracking: Readers can scan multiple EPC RFID tags simultaneously, providing instant product location data. This empowers businesses with real-time inventory insights.
  • Enhanced Efficiency: With real-time data, businesses can optimize supply chain management, improve inventory control, and gain valuable insights into product movement.
  • GS1 RFID, powered by EPC and RFID, empowers businesses to seamlessly track products, leading to greater efficiency, transparency, and improved decision-making across various industries. While EPC barcodes may still be used in some applications, GS1 RFID offers a powerful alternative for situations where traditional barcodes fall short.

EPC Applications in Different Sectors

EPC barcode, paired with RFID technology, are revolutionizing how various sectors manage their products:

  • Retail: Imagine checkout lines that scan your entire shopping bag at once! RFID with EPC enables faster purchases, improved inventory accuracy, and real-time loss prevention in stores.
  • Pharmaceutical Industry: Ensuring medication authenticity is crucial. EPC tracks drugs throughout the supply chain, preventing counterfeits and ensuring patient safety.
  • Logistics & Transport: Real-time tracking of shipments with EPC streamlines deliveries, minimizes delays, and optimizes routes, leading to cost savings and improved customer service.
  • Agriculture & Food: Track farm-to-table freshness! EPC monitors food products throughout the supply chain, ensuring proper storage conditions and enhancing food safety.
  • Manufacturing: Streamline production! EPC tracks components and finished goods in real-time, optimizing production lines and preventing inventory shortages.
  • Healthcare Sector: Improve patient care! EPC tracks medical equipment and supplies, ensuring their availability and optimizing sterilization processes.

These are just a few examples – the applications of EPC technology continue to expand across various sectors, driving greater efficiency, transparency, and safety.

Frequently Asked Questions

1. Can EPC/RFID tags be part of a fabric label sewn into an apparel item?

Absolutely! Special fabric labels can be embedded with EPC/RFID tags, offering a discreet and durable solution for tracking apparel. These labels withstand washing and drying, ensuring the EPC RFID tag remains functional throughout the garment’s life.

2. Do EPC/RFID tags contain information about consumers?

No, EPC codes typically only hold product identification data (e.g., brand, size) and are not linked to specific consumers. Privacy regulations further safeguard consumer data when using GS1 RFID or EPC RFID technology.

3. How EPC is used in RFID?

EPC stands for Electronic Product Code. It’s the unique data (product code) stored on the RFID tag’s microchip. RFID technology allows the wireless reading of this EPC code by an RFID reader, enabling efficient tracking and identification of products using EPC in RFID.

4. What are the concerns relating to the use of RFID?

Some people have privacy concerns regarding potential tracking of individuals through RFID tags. However, EPC codes used in GS1 RFID and EPC RFID applications are usually not linked to specific consumers, and regulations control data collection and usage.

5. How does RFID impact consumers?

RFID can benefit consumers by improving product tracking with GS1 RFID or EPC RFID, potentially leading to faster checkouts, better product information access (e.g., through mobile apps), and improved product authenticity verification. However, some may be concerned about potential privacy issues.

6. Will RFID replace barcodes?

Not necessarily. While RFID offers advantages like wireless reading and storing more data, barcodes remain a cost-effective option for many applications. They might coexist and complement each other, with EPC/RFID being used for situations where barcodes fall short.

7. Is RFID new?

The core concept of RFID has been around for decades. However, advancements in miniaturization and chip technology have led to its wider adoption in recent years, making EPC/RFID a more viable solution for tracking and identification across various industries.

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