EAN-UCC standards in logistics solutions – implementation examples

The paper was presented at the Polish Logistics Congress “Logistics 2000 – Meeting the logistics challenges of the 21st century”. Poznań, June 1-2, 2000.

The first part of the article highlights the importance of standards in logistics and presents solutions offered within the international EAN-UCC system. The second part presents three examples of implementations based on EAN-UCC standards in various areas of logistics: in the distribution of frozen goods, in hospital pharmaceutical supply chain management, and in collaborative inventory management by a manufacturer and a distributor.

Are standards needed in logistics?
The problem of using identification standards in logistics is becoming increasingly important in Poland as well. This applies to companies that have already gone through the stage of internal restructuring and are starting to look for ways to improve the flow of materials and information in their environment. Unfortunately, it is impossible to effectively implement supply chain management solutions without a uniform, harmonized system of identification and information exchange. This has been experienced by freight forwarders and logistics service providers in Europe, who, working with many clients, deal daily with various systems functioning within a single company or corporation. Most of these systems can only be used between specific partners, which means that the implemented solutions cover only some links in the supply chain. This problem has not gone unnoticed by international standardization organizations, including CEN, which has already developed many standards in this field.
These include:
– EN 1571:1996 Bar codes – Data identifiers
– EN 1572:1996 Bar codes – Logistics unit identifier
– EN 1573:1996 Bar codes – Multi-industry transport label

These standards significantly limit the number of different identification variants and also provide a way for their simultaneous use without the risk of duplicate identifiers. In practice, however, even this limited number creates many problems, which entails the need to choose one solution for a specific group of cooperating business partners. It is best if such a solution is not limited to one specific industry, is an open standard, generally known and common, as this simplifies the implementation process and encourages the expansion of the user base. An example of such an approach is the decision of the European Freight Forwarders and Logistics Service Providers Association (Freight Forward Europe, FFE) regarding the implementation of EAN-UCC standards. Mr. Hakan Larson, Chairman of FFE, explains this decision as follows:
– Freight Forward Europe decided to support EAN-UCC standards because currently almost no product reaches retail without an EAN-UCC identifier, and for this reason, FFE is convinced that it was the obvious choice as an identification standard for the logistics part of the supply chain. A clearly defined and standard, global EAN-UCC logistics code structure makes it possible to ensure data integrity, which is necessary in the supply chain.

What is the EAN-UCC system?
The EAN-UCC system has been functioning in global markets for over 25 years. Currently, over 800,000 companies from around the world use it through a network of 94 national organizations. In Poland, the association has been represented by the Bar Code Center – EAN Poland at the Institute of Logistics and Warehousing since 1990.
The constantly developing system is a collection of multi-industry identification and communication standards designed for logistics processes carried out within the supply chain and administrative support. It allows companies to build an effective communication system integrating all trading partners in the supply chain, from the manufacturer through the wholesaler and distributor to the retailer or end customer. It enables monitoring of the movement of goods and their location, and facilitates electronic business. The standards offered within the system can be divided into three groups:
– standard identification of trade units, logistics (transport) units, and locations (physical, functional, and legal)
– standard bar code symbolisms for data representation (EAN-13, UCC/EAN-128, ITF-14)
– standard EDI messages (EDIFACT/EANCOM).

The most important element integrating all standards is a uniform method of entering data (presented in the form of non-significant identifiers), which are transmitted between users using bar codes and EDI. Assuming openness and globality, the EAN-UCC system offers a consistent approach to identification and communication, thus setting itself the goal of creating and developing a common language for business in the broad sense.