All organisations 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 crucial in 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.
 - WHAT IS A GLOBAL LOCATION NUMBER?
- WHEN ARE GLOBAL LOCATION NUMBERS USED?
- WHAT ARE THE BENEFITS OF GLOBAL LOCATION NUMBERS?
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1. WHAT IS A GLOBAL LOCATION NUMBER?
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- Definition
A global location number or GLN is simply a numeric code that identifies any legal, functional or physical location within a business or organisational 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 start with a 3 digits prefix allocated by EAN International;
- they end with a check digit.
Example of a Global Location Number
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123
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456789012
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8
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EAN.UCC
Prefix
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Company prefix & Number allocated
by the company
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Check
Digit
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Prefix : EAN.UCC Prefix
Company number (assigned by the numbering organisation) and
Number allocated by the company to a specific location
Check-digit : calculated on the basis of the 12 first digits.
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2. WHEN ARE GLOBAL LOCATION NUMBERS USED?
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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,...);
- routing information on logistic units.
- Electronic Data Interchange (EDI)
The exchange of standard message formats from one computer application to another is known as Electronic Data Interchange or EDI.
Location numbers 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, location numbers are cost-effective as they save valuable space in forms, reduce errors and save time.
- Goods physical flow process and transport
GLNs can be presented in bar code format and physically marked onto:
- 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.
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3. WHAT ARE THE BENEFITS OF GLOBAL LOCATION NUMBERS?
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- 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;
- Complexity : internal codes will have a variety of structures and formats, making application programming more complex and application changes costly;
- 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 EAN numbers allows any location to be identified and consequently any business regardless of its activity;
- International : location numbers are unique world-wide. Moreover, the international network of EAN Numbering Organisations, covering more than 80 countries, provides support in the local language.
- 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 recognised by the United Nations working party responsible for UN/EDIFACT and by the International Standard Organisation (ISO 6523).
Note: UN/EDIFACT stands for United Nations, Electronic Data Interchange for Administration, Commerce and Transport.
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