Locations
All
organizations exchange information in their business process, both externally and
internally. Although it is assumed that the information exchange
occurs between
the right parties, in many instances a precise means of identifying the parties
and locations has become an absolute necessity.
This is particularly the case for Electronic Data Interchange (EDI). Moreover,
the use of coded identification instead of alphanumeric names and addresses has
become key to the successful implementation of EDI projects.
I. What is a Global Location
Number (GLN)?
II. When are Global Location Numbers
used ?
III. What are the benefits of Global
Location Numbers ?
What is a Global Location Number (GLN)?
Definition
A Global Location Number or GLN is simply a number that identifies any legal, functional
or physical location within a business or organizational entity such as:
- Legal
entities : whole companies, subsidiaries or divisions such as supplier,
customer, bank, forwarder,...
- functional entities: a
specific department within a legal entity, e.g. accounting department
- physical entities: a particular room in a building,
e.g. warehouse or warehouse gate, delivery point, transmission point.
Each location is allocated a unique identification number.
GLNs are reference keys for retrieving information from databases such as:
- Postal Address.
- Type of location (manufacturing centre, warehouse, sales office, corporate headquarters).
- Region.
- Telephone, fax numbers.
- Contact person.
- Bank account information.
- Delivery requirements or restrictions.
What is the structure and presentation of a Global Location
Number ?
GLNs are governed by strict rules to guarantee that each one is unique world-wide.
They always have the following features:
- they are numeric.
- they have a fixed length of 13 digits which must be processed in their entirety.
- they end with a check digit.
Example Of a Global Location Number
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EAN-UCC Prefix
Company prefix & Number allocated by the company Check Digit |
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- Prefix: EAN·UCC prefix
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- Company number (assigned by GS1 Jordan) and Number allocated by the company to a specific location |
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- Check-digit: calculated on the basis of the 12 first digits. |
When are
Global Location Numbers used?
The identification of locations is required to enable
an efficient flow of goods and information between trading partners through:
-
EDI messages.
-
physical location marking (rooms,...).
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routing information on logistic units.
-
identifying parties on Payment Slips
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Electronic Data Interchange (EDI)
The exchange of standard message formats from one computer application to another
is known as Electronic Data Interchange or (EDI).
GLNs are a key concept in EDI. They provide a unique, unambiguous and efficient identification
of all locations relevant to the EDI transaction. This is a prerequisite to electronic
trading as it is obviously preferable if all trading companies use the same location
coding standard. Networks are then able to route EDI messages accurately to the
designated mailbox, workstation or application.
Names, addresses and information about particular locations do not need to be communicated
for every transaction, the necessary information is communicated only once, entered
on to computer files and subsequently retrieved by referring to a unique, standard
location number.
Even with paper based systems, GLNs are cost-effective as they save valuable space
in forms, reduce errors and save time.
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Goods physical flow process and transport
GLNs can be presented in bar code format and physically marked onto:
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trade units to identify the parties involved in the transaction (buyer, supplier).
-
transport units (consignor, consignee).
-
physical locations (place of delivery, place of departure).
The symbology for this is the UCC/EAN-128 which can be scanned to automatically
capture the details related to the location.
What are the
Benefits of Global Location Numbers?
-
Why use Global Location Numbers instead of an internal system
?
Any company can design its own internal system and code structure to identify all
the locations covering its operating requirements. Although an internal solution
might seem to be the easiest and fastest way forward, when information is exchanged
between computers of distinct companies this may present several problems, such
as:
-
Duplication : two or more
trading partners may use the same code to identify their internal locations.
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Complexity : internal codes will have a variety of
structures and formats, making application programming more complex and application
changes costly.
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Significance : location codes that contain information
related to the location in the code structure itself, will become difficult to handle
as the coding structure evolves to incorporate new meanings.
The use of GLNs provides companies with a method of identifying locations, within
and outside their company that are:
-
Unique : with a simple structure, facilitating processing
and transmission of data.
-
Multi-sectoral : the non-significant characteristic
of the GLNs allows any location to be identified and consequently any business regardless
of its activity.
-
Global: GLNs are unique world-wide. Moreover, the international
network of GS1 Member Organizations, covering more than 90 countries, provides support
in the local language.
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Who is using Global Location Numbers today ?
GLNs are widely used on a daily basis by more than 200,000 companies involved in
a variety of business activities, including chemicals, electronics, banking, healthcare,
retailing and do-it-yourself (DIY) sectors.
The GLN is recognized by the United Nations working party responsible for UN/EDIFACT
and by the International Standard Organization (ISO 6523).
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