In the reality of warehouse operations, there is a specific demand for reliable, accurate, and above all, unambiguously understood information that can be processed throughout the entire operational life of a given logistics unit. No warehouse is an “island” – it has its environment, suppliers, and customers, hence the immense importance of standardizing information flow in the supply chain. All links in this chain must therefore communicate using international and cross-industry identifiers and barcodes, i.e., GS1 standards. Among them, for the purpose of identifying logistics units in open supply chains, including warehouses, is the GS1 logistics label.
The GS1 logistics label is nothing more than a piece of paper through which companies exchange information in a standardized, i.e., globally understood, manner. Data on the label is provided both in human-readable text form and in the form of a GS1-128 barcode, which enables automatic reading of information regarding the contents of the logistics unit (e.g., a pallet), quantity of goods, as well as expiration date, production batch designation, sender and recipient details, or a range of other business information important in the supply chain. This is particularly important in situations where Electronic Data Interchange (EDI) is not fully utilized, where all data, instead of being provided in a barcode, can be transmitted via an appropriate message. Where there is no developed EDI – and at present, such a situation is definitely more common – the label is the only way to ensure effective and unambiguously understood communication.
In the business world, a logistics label can be compared to musical notation on a staff – just as anyone who knows musical notation can play the sounds written in the notes, anyone who knows GS1 standards can read the information provided on a logistics label. As already mentioned, the logistics label is one of the standards of the global GS1 system, described in detail in the “GS1 General Specifications” document. It might seem that using a standard label should not pose any difficulties for users, as all information on the rules for its creation is publicly available. However, the reality is different – many companies use either local or internal solutions, and many require their suppliers to use labels based on GS1 standards but containing incorrect, incomplete, or redundant information, which can cause complications for all partners in the supply chains. This is particularly burdensome in the European market, especially in the European Union, which is a fairly well-integrated market where numerous business relationships exist between companies from different countries.
These phenomena were the reason for the creation of a European working group within the GS1 organization, which undertook the task of unifying and harmonizing the informational content of logistics labels, especially information presented in the GS1-128 barcode, i.e., intended for warehouse reading, in relation to the types of logistics units and logistics processes occurring among European users. The goal of the group’s work was also to eliminate discrepancies between approaches to using the label in different countries, and thereby influence an increase in the correct application of GS1 standards. Representatives of 24 national organizations from Europe and employees of the GS1 head office in Brussels participated in the working group’s efforts, and its chairmanship was entrusted to the Institute of Logistics and Warehousing – the Polish GS1 national organization. In the drafted guidelines document titled “GS1 Logistics Label in Europe,” the working group assumed that the only mandatory element of a logistics label is the Serial Shipping Container Code (SSCC).
The SSCC number is a globally unique number identifying logistics units, regardless of their structure and content. The SSCC identifies every distinct logistics unit; it is a kind of “license plate.” Like other GS1 identifiers, the SSCC number acts as an access key to the characteristics (description) of logistics units stored in IT systems supporting warehouse management.
Each logistics unit must be marked with a unique SSCC, which must not be reused for a minimum of one year. Certain industry regulations, for example, requirements related to tracking the movement and origin of goods, i.e., so-called “traceability,” may influence the extension of this period. If a logistics unit identified by an SSCC is also a trade unit (i.e., it appears on the manufacturer’s product list as a unit that can be ordered, priced, and invoiced), it can also be identified by a Global Trade Item Number (GTIN). GTIN numbers can also be assigned to logistics units that constitute a standard mix of other trade units.
The article comes from the magazine “Logistyka” 4/2010.