Global Location Number (GLN) Explained
A Global Location Number (GLN) is a crucial
element in supply chain management, serving as a unique 13-digit identifier for
any location, legal entity, or function within a business. It's a globally
recognized standard managed by GS1, the organization responsible for barcode
standards.
Purpose and Functionality
The primary purpose of a GLN is to pinpoint
specific locations, enabling improved visibility and efficiency throughout the
supply chain. This includes identifying manufacturing facilities,
distribution canters, retail stores, and even specific departments within a
company. GLNs facilitate accurate shipping, support electronic data
interchange (EDI), and streamline business communications. For example,
when a supplier sends materials to a warehouse, they use the recipient's GLN to
ensure the shipment reaches the correct facility.
Benefits of Using GLNs
Using GLNs offers several key advantages:
Improved Supply Chain
Efficiency: GLNs
ensure that shipments, invoices, and deliveries go to the correct location,
reducing errors and minimizing costly delays.
Standardized Business
Communications: GLNs
enable businesses to communicate with trading partners, suppliers, and
customers using a globally recognized system, which is especially valuable in
industries like retail, healthcare, and logistics.
Compliance: Many large
retailers, healthcare organizations, and government entities require suppliers
to have a GLN for EDI and other transactions, ensuring compliance with industry
standards.
Facilitates Traceability: In industries like
food and pharmaceuticals, GLNs help track products and materials back to their
source, aiding in managing recalls and audits.
GLNs in Exports
GLNs play a vital role in facilitating exports by:
Standardizing
Identification: GLNs
provide a universal method for identifying locations, eliminating the need for
trading partners to assign proprietary numbers, which simplifies international
trade.
Streamlining EDI: GLNs are essential
for electronic data interchange, which is crucial for international trade. They
enable accurate and efficient communication between businesses, facilitating
the exchange of orders, invoices, and other documents.
Improving Traceability: GLNs enhance the
ability to track goods throughout the supply chain, which is critical for
regulatory compliance and ensuring product safety in international markets.
Facilitating Compliance: Many countries and
industries require the use of GLNs for import and export documentation,
ensuring compliance with international trade regulations.
Reducing Errors: By providing a
unique identifier for each location, GLNs minimize errors in shipping,
invoicing, and other processes, leading to more efficient and cost-effective
export operations.
Obtaining a GLN
To obtain a GLN, businesses must register with
GS1, the global barcode standards organization. If a company already has a
GS1 US GTIN or a GS1 Company Prefix, they have already been assigned a GLN and
can find it by logging into the GS1 US website. If more GLNs are needed,
they can be purchased through GS1.
GLN vs. GTIN
It's important to distinguish between GLNs and Global Trade Item Numbers (GTINs). While both are unique identifiers managed by GS1, they serve different purposes. GTINs identify specific products, while GLNs identify locations. Both are critical for efficient supply chain management, with GTINs identifying what products are being sold or shipped and GLNs identifying where business activities occur.