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GS1

GS1 is a global, non-profit organization that develops and maintains standards for identifying products, locations, and assets, most famously through barcodes.

Full Definition

GS1 provides the foundation for unique identification in the supply chain, ensuring that every product, case, and pallet has a distinct identifier. These standards, like Global Trade Item Numbers (GTINs) for products and Global Location Numbers (GLNs) for locations, are crucial for efficient data exchange. By using GS1 standards, CPG brands can accurately track inventory, manage shipments, and facilitate seamless transactions with retailers and distributors globally. It ensures consistency and clarity across the entire supply chain.

Why It Matters for CPG Brands

For CPG brand operators, using GS1 standards is non-negotiable for retail acceptance and efficient operations. It enables accurate scanning at checkout, streamlines inventory management, and is vital for meeting traceability requirements from buyers and regulators. Adopting GS1 ensures your products can move smoothly through the complex retail ecosystem.

In CPG Operations

In CPG, GS1 standards are primarily used to assign unique GTINs to each product variation (SKU), which are then encoded into UPC/EAN barcodes. This allows grocery stores and distributors to quickly scan and identify products, track sales, and manage inventory levels. Without these standardized identifiers, selling products to major retailers would be impossible.

Example

A gourmet jerky brand with 10 different flavors and sizes uses GS1 to assign a unique GTIN to each of its 20 SKUs (10 flavors x 2 sizes). These GTINs are then used to generate UPC barcodes printed on their packaging. When a pallet of jerky arrives at a distributor's warehouse, the distributor scans the pallet's SSCC (Serial Shipping Container Code, another GS1 standard) to instantly log its contents, origin, and destination into their system, ensuring accurate inventory and efficient routing to retail stores.

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Frequently Asked Questions

Do I really need GS1 numbers for my small CPG brand?

Yes, if you plan to sell your products in retail stores, online marketplaces, or through distributors, GS1 GTINs (UPC/EAN barcodes) are almost always required. They are the universal language for product identification in the supply chain.

How do I get GS1 numbers for my products?

You obtain GS1 numbers by joining your local GS1 organization (e.g., GS1 US). They will assign you a company prefix, which you then use to create unique GTINs for all your products according to their guidelines. There is typically an annual fee based on your company's size or number of products.

What's the difference between a UPC and a GTIN?

A GTIN (Global Trade Item Number) is the unique product identifier assigned by GS1. A UPC (Universal Product Code) is a type of barcode that encodes a GTIN. So, the GTIN is the number, and the UPC barcode is the visual representation of that number that gets scanned.

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