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What is the problem with internal product numbers?

8.5.2019
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Malene Andersen
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No matter what you sell or where you sell it, you need to number your products: both for use in your own systems and for the sake of your customers, so you can communicate about orders and deliveries without misunderstandings. And this is where internal product numbers can throw a wrench in the works.

"But my product number is perfectly logical"

We often find that companies—both large and small—have defined internal product numbers based on what is logical to them. The numbers vary in length and may contain both letters and digits. For example:

  • For the cake manufacturer, the last digit indicates the flavor variant
  • For the webshop owner, the first digit indicates the product category

It is completely understandable to define product numbers that way—but is it smart in the long run?

Because what is logical to you is almost certainly not transparent to everyone else. And you have to consider that your customer is likely buying from other suppliers as well. On top of that, it is administratively cumbersome to have to handle product numbers that do not follow a standard format.

How high is the risk of confusion?

You might be thinking: "What is the risk that someone else has come up with the exact same product number as me? There are so many possible combinations."

The fact is that mix-ups happen every day, both in physical stores and in webshops. For example, a tub of liver pâté might be scanned as a ball of yarn. Or a customer might think they are ordering 10 units of apple juice, but instead receive 10 cases of apple juice.

The consequences of these mix-ups range from simple annoyance to significant financial losses.

When standardized product numbers (GTINs) are used between parties, however, there will be a unique GTIN for individual items and for cases. This ensures correct ordering in accordance with purchasing agreements or orders, and it ensures that the right product is picked and shipped.

What is the everyday fix?

Every day, goods must be ordered, picked, delivered, invoiced, and sold. So, what is the "fix" for everyday operations?

In many companies, product numbers are "mapped" to different customers in their systems. This means the company has its own internal product number, plus a note on which numbers customer A, B, and C use for that same product. This can mean that the manufacturer has to manage many different internal product numbers for the exact same item.

And that is certainly not an ideal scenario, as it is a process that is both cumbersome and prone to errors.

Uniqueness removes doubt

Standards ensure uniqueness, and uniqueness is not just important for getting exactly what you ordered. Legal requirements regarding traceability, among other things, place increasing demands on product information being uniquely accessible in a database based on a product number. The number is therefore the key that opens the exact right box of data. It goes without saying that here, uniqueness becomes not just nice-to-have, but need-to-have:

  • Exactly which type of raisins needs to be recalled?
  • Exactly which hip implant did Mrs. Jensen receive? And what size was it again?

Uniqueness removes doubt: With a standardized GTIN product number, you always open the same, correct box.

Standards make you independent

Because GS1 standards are so widespread in global trade and the healthcare sector, many IT systems are built upon them. If you use GTIN product numbers, you increase the likelihood that your product numbers will work across multiple systems – for example, if you want to switch IT systems or need to exchange data with a partner.

So what is the conclusion?

Internal product numbers should be exactly what they say they are: Internal.

GS1-services omtalt i artiklen

GS1Trade Image

GS1Trade Image provides professional marketing and planogram images that meet retailers' requirements and imaging guidelines.

If you want to create your own product photos, we can also help you get certified.

GS1Trade Sync

GS1Trade Sync is a data pool for product data exchange that your trading partners can access.

GS1Trade Sync streamlines data exchange between trading partners because data only needs to be entered in one place. This increases the quality of product data and creates value for you - and the entire value chain.

GS1Trade Packaging

GS1Trade Packaging is a packaging data system that gathers your packaging data in one place. The system ensures efficient collection, structuring, and declaration of packaging data, and makes it easy to exchange packaging data with other companies.

GS1Trade Exact

GS1Trade Exact ensures the quality of your product data. All physical products are checked against the data registered in GS1Trade Sync.
With this service, you get verified and quality-assured data that benefits the entire supply chain.

GS1Trade Transact

GS1Trade Transact handles the digital receipt of orders and the sending of documents to your customers. You can choose whether to integrate it with your financial system or access it online.

GTIN

GTIN (also known as EAN) stands for “Global Trade Item Number” and is the number sequence shown beneath a barcode symbol.

GTIN (EAN) is a global standard used to uniquely identify digital and physical products, allowing the barcode to be scanned anywhere in the world throughout the supply chain.

GLN

A GLN (also known as EAN) allows you to uniquely identify physical, functional, legal, or digital entities. This can include the sender, receiver, buyer, seller, supplier, manufacturer, delivery location, billing location, store, or internal departments.

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