The GS1 global standards organization has two primary roles. Not only do they administer Company Prefix allocations, they also create the global guidelines for GTIN identification. The master document is called The GS1 General Specifications, and it is updated every year. There is also a more specific “GTIN Management Standard” that provides detailed guidelines on when a new Global Trade Item Number (GTIN) should be assigned to a product. Here are the top 5 reasons for assigning a new GTIN based on the document.
New Product Introduction:
When a product is launched that is entirely new and not previously part of the company’s offerings, it necessitates a new GTIN. This is crucial because a new GTIN helps in distinguishing the new product from existing ones, assists in its unique identification in the global market, and facilitates effective tracking and inventory management. The introduction of a new product might also involve different packaging, ingredients, or intended uses, which are critical for consumers and retailers to identify.
Declared Formulation or Functionality Change
If a product undergoes a significant change in its formulation (like a change in ingredients or recipe) or functionality (such as an upgrade in a software product or an improvement in a physical product’s performance), it requires a new GTIN. This change is vital for consumer safety and compliance with legal standards, as it could affect how the product is used or its effects on consumers. For instance, a change in a food product’s ingredients could have implications for allergies or dietary restrictions.
Declared Net Content Change
Adjustments in the product’s size, weight, volume, or count, especially when there is a significant change in the quantity of the product, call for a new GTIN. This is essential for accurate consumer information and pricing. For example, if a beverage company reduces the size of its drink bottle, a new GTIN ensures that consumers are aware they are purchasing a product that is different in quantity from its previous version.
Dimensional or Gross Weight Change
A substantial change (more than 20%) in the product’s physical dimensions or weight warrants a new GTIN. This is significant for logistical reasons, affecting shipping, storage, and shelf placement. Such changes can impact how the product is handled and transported throughout the supply chain and may affect shelving requirements at retail outlets.
Addition or Removal of Certification Mark
The inclusion or removal of a certification mark (like organic, fair trade, or energy efficiency ratings) that is significant to regulatory bodies, trading partners, or consumers requires a new GTIN. These certifications often influence consumer purchasing decisions and are subject to regulatory compliance. For instance, adding an organic certification mark to a food product could significantly change its market positioning and audience.
Each of these reasons highlights the importance of GTINs in product identification and management. They ensure that products are accurately represented and tracked in the global marketplace, supporting efficient supply chain management, regulatory compliance, and informed consumer choices. The assignment of a new GTIN in these scenarios is critical for maintaining the integrity and accuracy of product information, which in turn supports business operations, consumer safety, and market competitiveness.
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