Page 1 Background for Discussion GTIN-14 on DEIG Product Label Distribution Executives Interest Group March 9, 2006

Page 2 Discussion Points Is the configuration of the GTIN-14 on the DEIG-recommended Product Label the most appropriate for the Book Industry? Once consensus is achieved on the first point, would more explanation or description of the coding in the DEIG Guidelines be helpful?

Page 3 DEIG Product Label

Page 4 What is GTIN-14? The Global Trade Item Number (or GTIN) is a family of internationally recognized identifiers It includes: –UPC – Universal Product Code (12/13 digits) –EAN – International Article Number (13 digits) –GTIN-14 (14 digits) –Other identifiers Any member of the family can be expressed as a GTIN-14 by right justifying it and zero filling to the left

Page 5 Why Use GTIN-14? We need some way to indicate on the outside of a carton the contents of that carton GTIN-14 was developed by GS1 to meet that need and is utilized widely by general retailing If the Book Industry adopts the GTIN-14 standard (which we have), we align ourselves with national and global supply chain practices By aligning ourselves with global practices, we: –Meet the needs of a wide range of customers –Enable participation in Global Data Synchronization (GDS) or standardized data distribution –Gain the potential for supply chain efficiencies –Leverage techniques developed elsewhere

Page 6 GTIN-14 (Review) The GTIN-14 is built by placing the ISBN-13 (or any other EAN) in a 14-digit field, adding a prefix, and recalculating the check digit Prefix 0 indicates the unit level (the item itself) Prefixes 1 – 8 have significance as packaging level indicators ISBN GTIN-14 (Unit) GTIN-14 (PL, e.g., Carton)

Page 7 GTIN-14 (Review) Prefix 0 indicates unit level (the item itself) This form is used primarily in electronic communications –Data Synchronization –Business Transactions It rarely appears on the outside of a carton; then usually when the carton contains a single item GTIN-14 (Unit)

Page 8 GTIN-14 and Data Synchronization Data synchronization means establishing sources of standardized product data –Data with known, validated attributes (properties) –Data that may be used by all participants in a supply chain The GTIN-14 is the standard identifier for Global Data Synchronization (GDS) Participation by the Book Industry in Global Data Synchronization is inevitable: –Traditional booksellers sell non-book products –General retailers sell books

Page 9 GTIN-14 (Review) Prefixes 1 – 8 have significance as Packaging Level indicators The prefixes do not have fixed definitions For one item, –1 = Carton of 24 –2 = Carton of 36 For another item, –1 = Carton of 12 –2 = Pallet of 400 GTIN-14 (PL, e.g., Carton)

Page 10 Packaging Level Packaging Level is designated by the supplier –Customers can only request Packaging Levels that have been designated by the supplier –Packaging level information must be transmitted before business transactions can take place Packaging level is a major factor in general retail supply chains (case pack handling) –Distribution and stock receiving by case pack is more efficient than single item handling –Thus most ordering in general retailing is by case pack

Page 11 A Product Handled by Case GTIN-14

Page 12 Unit and Carton Identifiers GTIN-14 UPC (EAN)

Page 13 GTIN-14 Examples In General Retailing

Page 14 Packaging Level Indicator General Retailing By convention or common usage (not mandated by standard), a leading digit of 1 usually signifies a basic case pack in general retailing Manufacturers may choose other values (2 through 8) for standard case pack or for other packaging levels In general retailing, Carton Quantity is transmitted through data synchronization

Page 15 Packaging Level Indicator Book Industry DEIG-recommended Product Label follows the convention of 1 as case pack Carton Quantity is transmitted by inclusion on the Product Label (for now) and may vary for the same title

Page 16 DEIG Product Label GTIN-14 – Carton Quantity – 24 (this carton only)

Page 17 Packaging Level Indicator Book Industry In the future, other Packaging Levels may be designated by suppliers to improve efficiency through the supply chain

Page 18 Discussion Points Is the configuration of the GTIN-14 on the DEIG-recommended Product Label the most appropriate for the Book Industry? Once consensus is achieved on the first point, would more explanation or description of the coding in the DEIG Guidelines be helpful?