DIRECTORY OF PARTICIPATING COMPANIES

Guidelines for Product ID, Labels and Shipments (GPID)

Executive Overview

Product Identification Labeling and Shipment

Vital Items Checklist

Supply Chain Foundation Guide (SCF)

1. Introduction – Information flow in the supply chain, How to use the documents

2. Supply Chain Overview & Benefits

3. Organizing The Labeling Project

4. Understanding the EAN.UCC System

Label Implementation Guide (LIG)

5. Implementing EAN.UCC Labeling Project

6. Implementing Serial Shipping Container Code

7. Bar Code Print Quality

Contemporary Knowledge:

Comments from Members

OPWA Program

Linking Products and Information Flow

Real Problems in the Supply Chain

Verifying Compliance

Sunrise 2005

RFID Intro

OPWA Guidelines for Product ID, Labels and Shipments (GPID)

1.1 Introduction

1.2 Product Identification Using the U.P.C. for Item, Inner Pack and Master Pack

1.3 Data Files To Communicate U.P.C. Numbers

1.4 Carton Packing

1.5 CARTON LABELING: Product Identification and Shipping Label

1.6 Packing Slip Preparation

1.7 Selling Unit Packaging Requirements

1.8 Material Safety Data Sheets (MSDS)

1.9 Product Safety and Product Safety Labeling

1.10 Shipment Packaging and Pallets

1.1 Introduction

1.1.1  This document provides further explanation of the standards necessary to help you move your merchandise through the OPWA supply chain including retail stores and distribution centers.

1.1.2  In order to move products through the supply chain we must be able to identify the products and then match the physical product and shipment to the related transaction information.  This means that we must have a standard method to identify products and shipments including the bar codes and labels.  We must also have a standard to deal with methods of communicating information about shipments and the individual items contained in the shipment.

1.1.3  In this section we will explain a standard for a "hard copy" form to provide information about the individual item that will be used in a variety of database applications and another "hard copy" form to provide shipment information (manifest).  The forms will serve as models so that manufacturers and their customers can explain the elements of information that they each need in order to conduct business.  Trading partners can establish their own methods to electronically communicate the elements of information identified on the standard forms.

1.1.4  This section will also explain carton labeling.  We would like to remind the reader that there are two kinds of labels found on cartons.  One identifies the product that is contained in the carton the other provides shipping information. In fact there are a number of elements essential to driving costs out of our supply chain. They are:

• Product identification numbers (UPC) and shipment identification.
• Electronic files containing information about a specific SKU.
• Complete and accurate paperwork (forms and electronic files)
• Proper carton and inner pack quantities
• Complete and accurate label information
• Use of strong packaging materials

1.2 Product Identification Using the U.P.C. for Item, Inner Pack and Master Pack

1.2.1  Every item that is to be sold must have a unique product identification number using the standards established by the Uniform Code Counsel (UCC).  The OPWA guidelines require this product identification method that includes item identification, inner-pack and master-pack.

10.2.2  If this is your first involvement or if you need an overview we suggest that you review the Introduction and the Executive Overview

1.3 Data Files To Communicate U.P.C. Numbers

1.3.1  The product identification number that is found in the bar code is used to access different data files in computer systems.  Therefore manufacturers must be able to provide some fundamental information in an electronic form.  This electronic file must contain, at a minimum, the product identification number found in the bar code, the product catalog number, the description, the package quantity and package dimensions.  Various trading partners may require other information about specific items.  It is strongly recommended that companies discuss the “item master file” with their trading partners.

1.3.2  Distributor and retailer inventory master files must be matched to the manufacturer’s file using the U.P.C. number as a starting point (because of new global capabilities, the Uniform Code Council now refers to the product identification number as the global trade item number (GTIN). An important point must not be overlooked.  After the initial matching, then the files must be maintained.  This maintenance is called synchronization.  Any time something changes in a product master file (controlled by the manufacturer) the item master files throughout the supply chain must be synchronized with the manufacturer’s file.  Therefore it is important to have two capabilities, one for start-up matching and the other for ongoing synchronization.

1.3.3  Below we have provided an example of what a trading partner may expect in the way of information contained in the product master file.  It can be used as a model to help companies communicate with their trading partners.

Column Section of Forms for Product to Distribution Center or Direct to Store

P = Parent SKU

C = Child SKU

1. Column 1:  “Add or Chg”.  Indicate A if this item is being added to the customer’s system for the first time or “C” if this is an existing SKU, that is being changed or updated.  If this is a change, be certain that the SKU number is included and the fields, that are changing are highlighted.

2. Column 2:  “P or C”.  Use this field if this is an assortment SKU (a SKU in which the SKU number for reordering is not the same as the product which will be purchased by the customer.)  For example, round paper mache boxes are shipped in sets of nested sizes, 2”, 4”, 6” and 8” round boxes are nested inside of each other.  In this case, the Parent SKU is the SKU that is used to order the nested set of boxes.  It is an assortment of sizes.  The Children SKUs are the items that will actually be sold to the customer – in the example, these are the individual paper mache boxes.  Each of the individual boxes has a unique UPC code as well as a different retail.  If you are not requesting the set-up of a parent/child SKU relationship, leave this column blank.  The parent-child relationship, while used by some manufacturers, may be difficult for some retailers to manage.  This kind of a product identification numbering should be discussed with customers whenever possible.

3. Column 3:  Customer SKU.  If this is a change form, note the existing SKU; if this is a new item being set up, please leave this section blank.

4.  Column 4:  Vendor UPC:  Fill in your UPC code. Note that there have been some changes to the number structure. You do not need to change any U.P.C. item numbers. This should be presented as a 14 digit GTIN. Further information about the direct relationship of GTIN to U.P.C. is available in section 4.3.

5. Column 5:  Class.  Some retailers use this column as the class number within the department where this product will record sales.  If you are unsure about the class number, please leave this field blank.

6. Column 6:  Subclass:  Some retailers use this as the subclass number within the class where this product will record sales.  If you are unsure about the subclass number, please leave this field blank. 

7. Column 7:  Vendor Style #.  Fill in your item number for this SKU.

8. Column 8:  MSDS:  Does this item require a Material Safety Data Sheet?  Indicate YES with Y.

9. Column 9:  Item Description.  Description may be up to 30 characters including spaces, commas, periods, dashes or any other special characters.  In order to be an effective description, store employees need to be able to tell what the item is.  Therefore, begin with a broad category description then identify the color, dimensions or style. In addition, in many systems the customers only see the first 15 characters of the description on the register receipt, so the first characters need to define the category of product. 

Additional Columns Required for Distribution Center Products

10. Columns 15 and 16.  Projected Quantities.  This is used by some retailers and there are variations on the same theme. Leave this column blank unless your customer has given you direction.

• The POG set-up per store reflects the quantity, on the opening order for this product.

• The projected per store per month quantity is the number of eaches that the store expects to sell of this product per store per month.

11. Columns 17 through 28:  Master, Inner and Each dimensions.  Complete the dimensions of the product.  Use inches and pounds/ounces to designate case dimensions and weight.  Check with your customer to determine if this is necessary.

1.4 Carton Packing

This section deals with packing merchandise for transit to distribution centers as well as shipments direct to stores. First, we must explain the configuration terminology and requirements.

1.4.1  Product Packing Configurations

The packing configurations will define the lowest level of store selling unit (each), how many “eaches” will be packed as a group (inner pack), and finally how many eaches and inner packs are in a master case.

Most major retailers will work with the vendor’s existing production standards to promote manufacturing efficiencies for the vendor, and distribution efficiencies for the retailer.  When the configurations are defined, they must remain consistent throughout the product’s lifecycle.  Do not ship in the new configuration prior to reaching approval from your trading partner.

1.4.2  Single SKU in Cartons

Each shipping carton should contain only one SKU, unless the order is a specific assortment requested by your trading partner.  However, there may be some deviations from this normal rule.  Be sure to discuss this with your trading partner. Each different packing level or configuration will have a different 14 digit GTIN.

1.4.3  Inner Pack / Storage Case

The inner pack or storage case quantity is the total number of selling units grouped together in a “bundle”.  Several bundles or inner packs may exist in a master pack.  The product is usually grouped inside of bags, smaller cartons or plastic wrap.  The inner pack quantity must be consistent for the same SKU for all orders.

1.4.4  Master Packs

A master pack quantity is the total number of selling units (eaches) within the master case.  The master pack quantity must be consistent for the same SKU for every order.

1.4.5  Packaging

Typically distribution centers will select individual units, inner packs, master packs and even full pallets to fulfill store inventory demands.  Whenever possible, products should be packaged in corrugated cardboard boxes.  The following standards should be applied whenever possible.  It is recognized that there are rare exceptions when the product size or shape does not allow for packaging in corrugated cardboard boxes.  These exceptions should be discussed with trading partners for approval prior to shipment to the distribution centers or stores.

•   Selling units (“eaches”) each carrying a U.P.C. bar code should be packaged based on trading partner requirements when the product was first set up with the buyer.  However, additional filler material may be required to protect the merOPWAndise from soiling, breaking or deteriorating.  Biodegradable materials are preferred for filler material.

•   Inner packs and/or storage cases:

  • Each must carry a 14 digit GTIN presented in EAN/UCC 128 bar code. To allow the distribution centers to use conveyor systems, many retailers prefer that the packaging for all inner packs and/or storage cases that are at least 5”H x 4”W x 2”L  and weigh at least 2 lbs. be a shippable carton. 

  •   Merchandise which measures less than 11”H x 11”W x 16”L and is not packed in a shippable inner pack carton may be overpacked with other merchandise for shipment to the store inside a repack box. The packaging used must be sufficient to protect the merchandise from damage or soiling as it is handled and shipped to the stores in the repack box. 

  • Some distribution centers and retailers have re-pack boxes of specific dimensions. It is important that you discuss your packaging capabilities and their requirements.

• Inner packs/storage cases for Seasonal or Special Event Merchandise:   

  • Inner pack / storage case quantities for seasonal merchandise must be packaged together in shippable containers within the master pack. 

  • Some retailers have very specific requirements about the nature of inner packs/storage cases and seasonal merchandise.  Make sure that you understand their requirements if any exist.

• Master packs must carry a 14 digit GTIN presented in EAN/UCC 128 bar code.  Merchandise should be protected in a shippable carton that can be transported and handled without tearing or breaking.  Shrink-wrap, plastic bags, or straps may not be acceptable for master carton packaging for some retailers.  Fragile merchandise should be packed with material that allows the cartons to be transported from the vendor’s site to the final destination without damage.  If breakage is common for certain merchandise, the vendor will need to take steps to improve the method or type of packaging.  Typically, the cardboard quality must be 175-pound test corrugated to protect your merchandise.

• Seal the carton using polypropylene film (plastic) box-sealing tape, glue and/or staples.  Do not use paper tape that utilizes a water-based adhesive to seal your boxes.

• It is extremely important that the size of the carton selected for a SKU remains consistent for all orders.  The distribution centers allocate storage space based on the original carton size and quantity of the cartons.  If merchandise allows, shipping cartons should be within the dimensions listed in the table below.  This allows the distribution centers to process merchandise via conveyor systems.

•   Use of plastic or metal banding may be prohibited on all master cartons, inner pack boxes and pallets being shipped to a number of retailers.  If your merchandise is exceptionally heavy or dense, you should contact the trading partner to request an exception to this rule.

1.4.6  Proper Packaging Summary:

It is your responsibility to ensure product is packaged to prevent damage or loss.  Do not ship your goods without the correct protection.  Below are some basic guidelines for proper packaging.

• Use a carton of at least 175 pound test strength

• Use adequate cushioning material

• Secure with polypropylene film tape designed for shipping

• Affix proper labels to each carton as described in the section on carton labeling requirements

• The shipping label must display a complete return address

• Be sure to discuss the use of metal or plastic banding to secure master cartons, inner pack boxes, or pallets with your trading partners if you intend to use them

1.5 CARTON LABELING: Product Identification and Shipping Label

This section deals with carton labeling.  We would like to remind the reader that there are two kinds of labels found on cartons.  One is for product identification telling what is contained in the carton; the other carton label is the shipping label.

Figure 1 – Product Identification and Shipping Label Location

Notes:

This is to be the location for the label described in Figure 2 and the Shipping Label in Figure 3 (when placed on an individual inner-pack or master carton).

1.      Labels should wrap around and be in the lower left quadrant of the short side of the master carton.

2.      The area from the bottom to the top of the carton and 7 inches back from the corner is reserved for this application. No other labels are to be placed there but carton graphics are permitted.

3.      If manufacturers must use a second label for internal systems, the second label must be as close to the top of the carton as possible to avoid confusion.

4.      The bottom of the product ID label should be parallel to the bottom of the case.

5.      If the master carton is not high enough for a shipping label to be placed above the master carton label, place the shipping label in the area to the right of the master carton label on the short side of the master carton.

1.5.1  Product Identification Label Specifications

Figure 2 – Product ID Label With Bar Codes (not to scale)

1. Label Purpose – To be used on a single container (either master carton, storage case, or inner-pack) holding one or more items with a single part number.
2. The Carton Product Identification Label design is based on the bar code label standards developed by the Uniform Code Council (UCC).
3. The “Global Trade Item Number” (GTIN) as it is referred to by the UCC is contained in the bar code. The GTIN is the primary method of product identification. It is the number used in the item master file and the number used to identify each product shipped on the manifest, packing slip or electronic file called an ASN.
4. All bar codes use UCC/ EAN -128 symbology. The bar code will have a minimum height of ½ inch. 
5.  The preference is for the shipping label to be located in close proximity to the master carton label on the short end of the master carton (See Figure 1).
6. The mandatory blocks of information are the manufacturer, the description and the GTIN bar code with human readable information below it.  The other blocks are optional but should be agreed to by the trading partners to avoid any confusion on the part of employees who must handle and identify the products.
7. All print fields should be left justified and centered vertically within each block of data. 
8. Fonts shall be in upper case bold Arial or Arial Narrow, or equivalent.
9. Each block of data on the label will have a human readable block definition. The minimum recommended Font Sizes by the Uniform Code Council are:
• 9 pt is equivalent to 0.125 (1/8”) in height for block identification
• 36 pt is equivalent to 0.500 (1/2”) in height for other text
10. Please note the above font sizes are nominal and may need to be adjusted depending on your printer software.
11. There is a preference to print a box around each of the individual blocks of data on the label.
12. There may be a preference for a wrap around product identification label.  The wrap around label may be printed on a single label or two separate labels.  When two separate labels are used, the labels should be located on adjacent sides of the carton in the assigned space.  With a wrap around label, the right half is to be a mirror image of the left half.  All of the field positions are reversed.  For example, in Figure 2, the blocks containing the optional, quantity, description and GTIN bar code fields will be on the right for the left label, and on the left for the right label.

1.5.2  Shipping Label

Different retail stores and retail chains may have a variety of different logistics systems. For example, some vendors may be shipping to stores; others may be shipping to distribution centers.  Below is a model of the shipping label to carry the most fundamental of information.  Manufacturers should discuss specific needs with their customers since there may be a requirement for some additional or slightly different information based on the specific logistics system.

• Overview of Label Layout
  An important bar code standard has been approved by ANSI (American National Standards Institute).  The standard is called American National Standard for Materials Handling - Unit Load and Transport Packages - Bar Code Symbols (henceforth referred to as ANSI MH10.8). The standard is important because it makes it easier for companies and industries to develop comprehensive shipping label specifications using a format developed and maintained by an internationally accepted standards-setting body … ANSI.

• ANSI MH10.8 Framework
  ANSI MH10.8 is a guideline or "framework" for developing shipping label specifications.  The MH10.8 addresses all the important issues of a standard and it simplifies the process of developing a shipping label specification (not product identification labels; mentioned earlier). OPWA has used this framework to develop its model label.

  • The label consists of three key segments: 1) the customer segment, at the top of the label 2) the carrier segment, beneath it and 3) the supplier segment at the bottom.

  • Each segment is divided into blocks and each block can be divided into sub-blocks.

  • Separator lines delineate the blocks and vertical separators designate sub-blocks.

1.5.3  Shipping Labels

Regardless of whether the shipment is an express shipment, LTL, or even a truckload, the vendor must affix a label, at least 4” x 6” in size, with information found in the example below on each carton in the shipment. 

Label Example

Table 2:  DC Shipping Labels Block and Content Requirements and Recommended Block Dimensions and Text Formats

1.5.4  Application of Shipping Labels to Shipping Containers

All shipping labels must be legible and complete, with shipper and consignee information corresponding with the bill of lading.  For shipments sent directly to the stores, the lead carton (box #1 in the shipment) containing the Packing Slip should be clearly marked “Packing Slip Enclosed”.  For shipments being sent to a distribution center, the packing list must be affixed to the outside of the lead carton or pallet in an envelope marked “Packing Slip Enclosed”.  For truckload shipments, attach the envelope to a pallet at the rear of the trailer.

Guidelines for placing labels are shown below.  You must affix the label to the side of the box if the dimensions of the box allow.  However, if the box size does not allow the entire label to be affixed to the side of the box, you may place it on the top of the box.

1.6 Packing Slip Preparation

A packing slip is required for all shipments to retail stores, distribution centers and third-party facilities.  The packing slip contains critical information to properly identify and receive merchandise at stores and distribution centers.  Retailer employees use this information to help identify, sort and confirm merchandise quantities.  Retailer Accounts Payable departments also use packing slips as supporting paperwork for vendor payments.  Packing slips must reflect the actual shipment contents.  Missing packing slips or inaccurate information on a packing slip causes delays in receiving which prevents the product from being placed in inventory or made available for sale to a customer.  These types of errors could also delay payments to vendors.

For shipments going to a distribution center, packing slips should be securely affixed to the lead carton or pallet inside an envelope marked “Packing Slip Enclosed”.  For shipments going directly to the stores, the lead carton should be marked as containing the packing list.

Packing slips are always in paper format and must be included with each shipment of merchandise.  Below is a model manifest (packing slip).  Not all packing slips will be the same for all vendors.  The model should be used to help vendors and customers understand each other’s needs and capabilities to provide the necessary information.  The minimum required information should be presented in a format that is legible and organized for efficient receiving.

Please note: A separate packing slip is required for each purchase order within the shipment.

1.6.1  Packing List / Manifest (see Description of Fields)

1.6.2  Description of Fields