GLN — what is it and why retailers need it

Companies starting to work with EDI services must obtain a special number from the provider — GLN. In this article we will tell you what it means and why suppliers need it.

What is a GLN code?

GLN (Global Location Number) is an international code used in e-commerce and electronic data interchange systems. With the help of GLN, you can accurately determine the location of companies, their divisions, stores, warehouses, etc.

The GLN number consists of 13 digits:

• country code — consists of two or three digits. For example, the code of Ukraine is 482;
• object code within the enterprise — together with the country code, it consists of 12 digits;
• check digit.

The GLN code is unique for each company. Some countries also have internal coding systems, but the GLN system is a universal way of identification. It is used in international trade, including EDI data exchange.

EDI system uses standard electronic messages. Based on the data contained in them, special services can be used to generate electronic primary documents accompanying the delivery of goods.

In the EDI system, all electronic messages are standardized, so EDI services process and send them automatically, without human intervention. To ensure that all companies can work in the system, each of them needs a unique designation. The EDI system relies on the GLN standard to identify trading companies and the objects they own.

What is GLN needed for?

If companies exchange paper documents in their supply chains, each document must contain the details of the seller, buyer, carrier, or other participants in the supply process. In such cases, participants often make mistakes or provide outdated information. This complicates the document flow, requires additional funds and time to correct. The use of GLN in EDI and ERP eliminates such errors because the system automatically reconciles data.

Companies that do not use GLN may face confusion in orders, inconsistencies in documents, and delays in delivery. They may receive fines due to errors in logistics. The use of GLN is a standard in the work of large networks. If a supplier does not comply with it, the network may refuse to cooperate with them.

In EDI exchange, it is enough to specify the GLN number to identify the participant in the supply process. From the code, you can get all the information about the company. In particular, you can determine:

• name of the legal entity;
• type of facility (company office, production facility, warehouse, etc.);
• its location.

If the company has a branched structure and its individual facilities are located in different regions, each of them should receive a separate GLN. This will avoid confusion in the supply process. For example, using the GLN number of the customer’s company, the sender can determine exactly to which warehouse the goods should be shipped.

Additional GLN numbers are also needed by companies that operate in different areas (retail, logistics, etc.). Such companies receive separate codes for accounting, warehouse, store, and other facilities. This allows business partners to know exactly which department to send emails to. Separate GLN codes are also needed for companies that have a separate legal entity for each line of business.

GLN and product barcodes

GLN makes it possible to track the movement of goods in the supply chain (for example, from a supplier to a retailer’s warehouse) or between facilities owned by the same company (for example, from a warehouse to a store). If a company integrates an EDI service with an inventory management system, GLN data can be used by employees to track the availability of goods in warehouses and stores.

To make the information from the GLN readable, the numbers are encrypted with barcodes or EPC/RFID tags. This makes it possible to automatically determine the destination and storage location of pallets, their origin, and thus to ship and receive goods more efficiently.

How to get a GLN

In Ukraine, GLN numbers are assigned by GS1 Ukraine. To obtain a code, a company must:

1. Join the GS1 Ukraine association.
2. Obtain a main GLN code for a legal entity.
3. If necessary, order additional GLNs for structural units.

You can also get a GLN from an EDI provider. In particular, in Vchasno.EDI, you need to:

1. Contact the manager.
2. Generate a GLN code or add an existing number to the system.

Information about new members is automatically entered into the association’s electronic catalog. It becomes available to all partners who already have a GLN.

How to check the GLN

The GLN number of a supplier can be checked on the website of the GS1 Ukraine Association.

If a supplier company wants to cooperate with a retailer in the Vchasno.EDI service, it will need to provide its own GLN among other data to join. You can find your code in your Vchasno.EDI personal account. To do this, you need to:

select the «Settings» section in the left menu;

go to the «General» tab.

The GLN code will be listed among the main data of this tab.

The Vchasno.EDI service allows you to obtain a GLN code to conveniently exchange data with trading partners. Request a consultation on the Vchasno.EDI website.