The global trade system depends on importing and exporting products between nations. In the flurry of trades, a technique to identify and organize items becomes necessary for smooth and efficient functioning, irrespective of linguistic or geographical barriers or country-specific regulations

History of GS1 trade systems-

GS1 trade systems were conceived in the mid-late 20s in the USA to simplify the processes of transactions. In 1974 first-ever barcode scan took place when a pack of chewing gum was scanned at the supermarket. By 1977 the European Article Numbering Association (EAN) was founded with 12 countries adopting these standards. By the next decade, the GS1 continued expanding and evolving spreading its influence to 45 countries. 

What is GTIN? 

A Global Trade Item Number (GTIN) is a unique identification key for any product or service that may be priced, ordered, or invoiced at any point in the supply chain. It is the building block of the GS1 standard system. A product's GTIN is assigned by its brand owner and is essential for identifying products as they move through the global supply chain.

GTIN can be used in physical products, and business transactions to support order-to-cash processes, on internet applications as a unique resource identifier, in databases and IT systems and visibility needs.

GTIN Structure

GTINs can be 8,12, 13, or 14 digits in length (GTIN-8, GTIN-12, GTIN-13, and GTIN-14). Each GTIN is a combination of numerics consisting of different elements.

1. Indicator Digit- This is the first digit of the GTIN-14. A number from 1 to 8 is used to identify packaging levels and define a product's packaging hierarchy. For example, you sell juice boxes to stores, sometimes individually, sometimes in packs of 6, and sometimes in cases of 24. So indicator digit indicates: “Is this a single item, or is it part of a larger package?” 

Indicator digit 9 is used exclusively for variable measure products, for example, meat, cheese etc.

2. GS1 Company Prefix- This is a globally unique number licensed to a company by a GS1 member organization to serve as a foundation for generating GS1 identification keys such as GTIN.

3. Item reference number- This is a number assigned to the user randomly without any logical sequencing- to identify a trade item.

4. Check Digit- This is the final digit calculated from the preceding digits of the GTIN, used to check that the data has been correctly composed.

Commonly used types of GTIN 

Universal Product Code (UPC)- Standard product ID that is used to sell a product.

International Standard Book Number (ISBN)- This is a product ID used specifically for books.

European Article Number (EAN)- It is a product code used in Europe and European marketplaces.

In India, the most commonly used GTIN type is GTIN-13 or EAN-13, used for retail products. GTIN-8 is used for smaller products where a shorter barcode is required. GTIN-14 is employed to identify cases or pallets of products, used mainly in logistics and warehouse management.

The appropriate GTIN and barcode or GTIN and EPC/RFID tag combination is determined by many factors, such as the type of product, where it will be scanned, and the printing material used for the product packaging.

How do GTINs Support Business Intelligence?

GS1 Standards provide the format and structure for GTINs to be used across various platforms where product identification and information are needed across all business sectors, enabling any product to be identified using the same standardized identifier. This enables trading partners to use the same identifier to distinguish the product across all of those platforms empowering data-driven organizations with the information they need to optimize business intelligence and improve business processes. The inclusion of the check digit supports integrity in the GTIN structure. GTINs are a global standard that can be assigned by any company anywhere and used worldwide. The standardized structure and rules for assigning GTINs help ensure that every GTIN is globally unique.