Understanding GTINs: When Change is Necessary and the Impact on Supply Chain Transparency

The Global Trade Item Number (GTIN) is a critical component in the world of product identification, serving as a unique global identifier for trade items. This standardised number plays a crucial role in the efficiency of supply chain management, enabling retailers, suppliers, and consumers to easily identify products. However, there are circumstances under which a GTIN may need to change, and understanding these conditions is vital for suppliers, regulators, and retailers alike. Ensuring accurate GTIN usage maintains product integrity, fosters consumer trust, and supports effective regulatory compliance.

What is a GTIN?

GTINs are (usually) 14-digit numbers used globally to identify products in commerce. They are part of the GS1 system, a set of standards and practices that underpins a common language; ensuring product information is accessible, accurate and easy to understand. GTINs come in various formats - UPC and EAN and in the not too distant future the NextGen QR code GS1 Digital Link - which are used in different regions of the world. The primary purpose of a GTIN is to provide a unique identifier that can be easily scanned and tracked in supply chains, databases, and point-of-sale systems across the world.

Conditions Under Which a GTIN Might Change

While GTINs are established to be permanent identifiers for products, certain scenarios necessitate a change:

1. Product Rebranding or Reformulation: When a company changes the name, packaging, or formulation of a product, a new GTIN is required. This helps retailers and consumers differentiate between old and new versions of the product.
2. Change in Product Size or Quantity: If the quantity or measurement of a product changes (e.g., new weight or volume), it is crucial to assign a new GTIN to reflect this change accurately. This is critical for pricing, inventory management, and consumer information.
3. New Product Variants: Introducing a new variant of an existing product, such as additional flavours, colours, or sizes, often requires a new GTIN. This ensures that consumers can identify and select the specific variant they wish to purchase.
4. Change in Product Composition: For products undergoing significant alterations in their ingredients or components (especially in regulated products like food and pharmaceuticals), a new GTIN is necessary to provide consumers with accurate information about what they are purchasing.
5. Regulatory Compliance: Regulations can dictate that significant changes in product formulation or labelling necessitate a new GTIN to ensure consumer safety and compliance with legal standards.

Importance of Identifying GTIN Changes

Recognising when a GTIN change is necessary is essential for several reasons:

• Accurate Consumer Information: Retailers depend on correct product information to provide consumers with details about the products they're purchasing. Outdated or incorrect GTINs can lead to confusion, mislabeling, and potential harm, especially in food and pharmaceuticals.
• Inventory and Supply Chain Management: Retailers use GTINs to manage inventory efficiently. When GTINs are not updated, it can lead to discrepancies in stock levels, ultimately affecting sales, profits, and customer service.
• Regulatory Compliance: Many industries are governed by strict regulations concerning product labelling and information disclosure. Suppliers and manufacturers must ensure their products are correctly identified with a relevant GTIN to avoid penalties and ensure compliance.
• Consumer Trust: Maintaining up-to-date GTIN information helps to foster consumer trust. Consumers are more likely to feel confident in purchasing a product when they know they can rely on accurate labelling and identification.

Conclusion

While a GTIN serves as a global identifier for products, various circumstances may warrant its change. Suppliers and regulators must be aware of these conditions to ensure that retailers have the correct information to share with consumers. This diligence not only enhances supply chain efficiency but also supports regulatory requirements and consumer trust. As product markets continue to evolve, proactive management of GTIN changes will remain an essential aspect of effective product marketing and consumer engagement.