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Identification System

Trade Items

• Definition
• Global Trade Item Number (GTIN)
• Data Structures
• How to calculate a check digit
• Who should allocate Identification Numbers?
• Notifying Trade Partners

Definition

A Trade Item is any item (product or service), for which there is need to retrieve pre-defined information about the item, that may be priced, or ordered, or invoiced between trade partners at any point in any supply chain.

Global Trade Item Number (GTIN)

A Trade Item is identified with a Global Trade Item Number by using 4 data structures: GTIN-8, GTIN-12, GTIN-13 and GTIN-14. If inserted into data bases, they are all recorded in a 14-digit data field. Choosing a data structure depends on the type of item and the field of user application.

Data Structures

There are four ways to construct a GTIN:

GTIN-14 data structure

GTIN-13 data structure

GTIN-12 data structure

GTIN-8 data structure

Each of the above stated data structures can be illustrated with a barcode belonging to the GS1 System.

• Indicator

  It can be used only GTIN-14 numbers. It has the value from 1 to 8 for fixed measure trade items and 9 for variable measure trade items.

• GS1 Company Prefix

  The GS1 Company Prefix is part of the data structures used by GS1, except the GTIN-8 data structure. The GTIN-8 numbers are directly allocated by GS1 Member Organisations. The GS1 Company Prefix provides access to all the applications, who use the identification standards of the GS1 System (for example to identify trade units and services, logistic units, assets and others).

  Each company, that wishes to identify its products, shall receive a GS1 Company Prefix after its membership registration in the Member Organisation or at GS1. The Company Prefix varies in length and is usually determined by the number of items, which the company wishes to identify (1000, 10 000 or 100 000).

  The first two or three numbers N1, N2, N3 form the GS1 Prefix, administered by GS1. This does not mean that the product is manufactured or being supplied in the country carrying the GS1 Prefix. The number following the GS1 Prefix, is the company number allocated by the GS1 Member Organisation.

  The GS1 Prefix and the Company number form the GS1 Company Prefix, which is allocated to each user of the GS1 System by the GS1 Member Organisation. For Bulgaria, the number is composed of either 7, 8 or 9 digits, depending on the company’s needs.

• Trade Item reference

  This number is usually composed of 3 to 5 digits, non-significant, meaning that digits in the number themselves are not connected to a classification or contain any specific data. The most popular method for creating a data base of numbers is the sequential one, namely 0000, 0001, 0002, 0003 and so on.

• Check Digit

  The check digit is the last digit (on the right) of the Global Trade Item Number (GTIN). It is calculated using an algorithm of its preceding digits in the number and is used to guarantee, that the barcode is validly scanned and that the number is composed correctly.

How to calculate a check digit

Example: 380123456789

Step 1: 3*1+8*3+0*1+1*3+2*1+3*3+4*1+5*3+6*1+7*3+8*1+9*3

Step 2: 3+24+0+3+2+9+4+15+6+21+8+27=122

Step 3: 130-122=8

GTIN-13: 3801234567898

Or

Who should allocate Identification Numbers?

Generally, the organisation that owns the specifications for a product (or the Brand Owner) is responsible for the allocation of the GTIN, regardless of where and by whom, the product is manufactured. When registering with the National Organisation GS1, the brand owner is allocated a Company Prefix, which can only be used by the company, to which it was exclusively allocated. Thus the following may also be responsible for allocating GTINs:

• А producer or supplier

  If the company itself produces the product or it is produced for the company in another country, which sells it under the brand name, belonging to the producer or supplier.

• An importer or wholesaler

  If the importer or wholesaler has the product manufactured in any country under a brand name that belongs to the importer or wholesaler and sells the product under the brand name, belonging to that company. If the importer or wholesaler changes the product (example changes the item’s packaging).

• A retailer

  If a retailer has a product manufactured in any country and sells it under a brand name that belongs to that retailer.

Some companies produce the same product in different countries or at several manufacturing facilities. In this case the number should be allocated and managed centrally or by just one of the companies or plants.

Notifying Trade Partners

As the party responsible for managing the GTINs for your products and services, you are responsible for notifying your trading partners about the GTINs assigned and also details of any changes or deletions made.

Comprehensive information should be sent to your customers well in advance of trade commencing, to give your trading partner a chance to process it. The details should include your company name, address and Global Location Number (if applicable), the date, the 14digit GTIN for each traded unit, the full traded unit description, the GTIN for each retail unit and the full product description, including size & weight.