The Importance of GS1 Standards in Barcode Generation

Introduction

In 1996, GS1 India was established to help businesses implement a standardised and structured approach to supplying products in the market. This standardisation has since become a cornerstone of a transparent and interoperable supply chain. Indian manufacturers are now exporting products across the globe and are leveraging GS1 standards to track the end-to-end journey of their shipments. These standards have become a global benchmark in barcode generation which ultimately is imperative in the unique identification of each product being supplied in the market. 

This blog will help readers understand the critical need for GS1 standards in barcode generation. It will also illuminate the benefits, barcode generation process, and role of GS1 standards in shaping modern trade.

What Are GS1 Standards?

GS1 – an international not-for-profit organisation which governs GS1 India and 115 other member organisations, defines GS1 standards as a set of rules or guidelines that help businesses in ‘uniquely identifying’, ‘accurately capturing’ and ‘automatically sharing’ information about products, assets, locations and more, in any country and with any trading partner. 

These standards are developed to increase the process efficiency of businesses and provide them with an automated structure, facilitating unique identification of products and sharing electronic product information, globally. The GS1 system of standards is influenced by factors like broad acceptability, maximum applicability across various business scenarios and adherence by all parties. The standards are created to be mutually beneficial for both manufacturers and the end-consumers and hence benefit every element of the supply chain. Find below the three pillars of GS1 standards – 

• Identify (GS1 Standards for Identification) – These standards serve as a means to identify real-world entities, including – retail products, cartons, locations, documents, etc. so as to create a medium of information, used by people. These identification standards include GS1 Identification Keys, which facilitate the unique product identification of real-world entities and the flow of accurate information.
• Capture (GS1 Standards for Barcodes and EPC/RFID) – These standards serve as a means to automatically capture data, connecting real-world products and assets with electronic and easily accessible information.  Barcodes and Radio Frequency Identification (RFID) technology, serve as data carriers of the product information. These standards ensure the RFID tags and barcodes can be read by scanners and software components when required. 
• Share (GS1 Standards for Data Exchange) – These standards serve as a means to share the captured information with trading partners, end-consumers and other businesses. These standards are foundational in enabling – electronic business transactions and visibility,  

GS1 barcodes are generated following these general GS1 standards. The structure of GS1 barcodes is defined and already set, because of which companies and countries enjoy streamlined operations and an accurate information flow. 

What is the Purpose of GS1 Standards?

GS1 standards play an indispensable role in the barcode generation process as they create a common trade language for businesses by uniquely identifying, capturing and sharing important information on the products. Due to their wide acceptability, they foster trust and dependability in the internal and external organisational workings.

Find below the purpose of implementing GS1 standards in your processes – 

• Global Interoperability – GS1 standards are the root of facilitating interoperability – the ability of systems and software to share and use information. They provide businesses with a standardised or common method of exchanging data.
• Unique Identification – Products with GS1 barcodes are uniquely identified in the market. They are different from every other type of product already available in the market which benefits marketplaces, retailers, manufacturers, and consumers. Every product variant is assigned a distinct Global Trade Item Number (GTIN) which strengthens trust between different parties by providing detailed and accurate product information. 
• Building Greater Confidence – When businesses build products and services around standards, they will have greater confidence in their outputs. Eventually, such businesses will be able to garner trust and recognition among consumers, marketplaces and trading partners in the long run. 
• Cost-effective Solutions – Businesses that have a standardised approach to supplying products in the market, benefit from reduced operational costs and implementation effort. They do not have to create a tailored approach for every partner they deal with, enabling them to easily exchange data electronically with all trading partners in a structured manner. 
• Mutually Beneficial Solutions – These standards are mutually beneficial to everyone, even if the trading partners are not directly involved or are indirectly linked by a mediator. The GS1 barcodes can be scanned by all of them and information can be accessed by different partners or consumers using scanners or mobile phones. 

The Benefits of GS1 Barcodes

Barcodes are machine-readable graphical representations that are designed to carry product data. They are used to automatically capture data and use it in various scenarios. There are two formats of barcodes – 1D barcodes and 2D barcodes. 1D barcodes are a series of black and white parallel vertical lines whereas 2D barcodes are patterns of squares and dots arranged in a grid format. They contain information about products in a structured manner.

Barcodes contain GTIN which is a 13, 12 or 8-digit unique identification number. This GTIN has four components which are critical to trade products in the market. The first component is the country code – where the manufacturing company is registered for barcodes, company code, product code and check digit – to ensure the GTIN is accurate. See below the structure of a barcode to understand how they are standardised in order to meet GS1 requirements. 

Below mentioned are some of the benefits businesses enjoy once they get registered for GS1 barcodes – 

• Elevated Accuracy  – With standardised barcodes, businesses benefit from smooth and error-free processes. Product information is directly pulled from the barcode pasted on the product which reduces errors that are caused due to manual listing.
• Streamlined Inventory Management – Barcodes facilitate real-time inventory information which helps businesses avoid situations like overstocking and stock-outs. Sellers can utilise this information to increase their process efficiency.
• Targeted Product Recalls – With barcodes, manufacturers can trace the entire journey of their products, right from their manufacturing to the retailers. By doing so, manufacturers can raise product recall alerts of any specific lot unfit for consumption. 
• Detailed Product Information – Barcodes encode detailed product information such as product name, manufacturer’s name, date of expiry and manufacturing, nutrient information, usage instructions etc. This information can be accessed by simply adding the GTIN details on the Smart Consumer app or on the GTIN Validation service portal of GS1 India. 
• Maximised Customer Experience – Consumers today are more aware of their purchases. When they are provided with easy and accessible information about the product they are buying, they feel empowered and businesses enjoy enhanced customer experience. 
• Faster Listing on Online Marketplaces – With barcodes, retailers can list their products on e-marketplaces such as Amazon, faster and more efficiently. Amazon, which is also an e-marketplace, recommends the use of GTIN to list products on their platform. 

How to Generate Barcodes Compliant with GS1 Standards?

GS1 India is the only authority in India which is authorised to issue barcodes to companies manufacturing products in India. Barcodes starting with ‘890’ are the only interoperable and standardised barcodes in India. Every GS1 member organisation has a separate country code and ‘890’ is the country code of India. Companies who wish to sell products in India need to obtain these authorised barcodes. 

Find below the steps to apply for GS1 Barcodes –  

Step 1: Visit the ‘Register for Barcodes’ page on GS1 India’s website. 

Step 2: Enter your business email or PAN card details where asked. 

Step 3: A form will open, complete the form and submit documents as and when asked. 

Step 4: In the form, you will be asked to select your subscription model. GS1 India has subscription models for barcodes ranging from 100 to 100000. Please note that the subscription model once selected cannot be changed, to switch companies will have to purchase a new barcode license. It is therefore advised that businesses consider their current and future requirements before they make any purchase. 

Step 5: Once you have completed the form, review all the details once and then click submit. After this, you will be asked to pay one-time registration fees and subscription fees. 

Step 6: Within 7-10 working days you will receive an allotment letter and your Global Company Prefix (GCP) which can be used to generate GTINs for your products. 

Conclusion 

GS1 standards play an imperative role in building a standards-based supply chain. They streamline a product’s journey from source to shelf and make every step in the supply chain transparent. Businesses benefit from streamlined processes and accountability at every level. If you are a new business person looking to supply products globally, GS1 barcodes are a one-stop solution for you. To make sure your barcodes are compliant with the GS1 standards you can explore GS1 India’s ‘Barcode Verification’ service.