RosettaNet Press Release
RosettaNet Advances E-Commerce Initiative For Supply Chain Process Alignment With Adoption Of GTIN Standards

RosettaNet Selection Of GTIN Provides Single Standard To Uniquely Identify Products, Promising Electronic Catalog Interoperability And Reduction In Product Search Error And Confusion

For Release October 19, 1999

Santa Ana -- A major step toward development of a global business language for supply chain e-commerce was announced today by RosettaNet. The announcement was made on behalf of members who have selected the Global Trade Item Number, sponsored by the Uniform Code Council (UCC) and EAN International, as their standard for unique product identification. This marks a milestone in the industry-wide initiative to make RosettaNet's supply chain standards a reality by February 2, 2000, also dubbed EConcert Readiness Day.

The decision by the RosettaNet members will expedite the alignment of seamless interface processes between supply chain partners, according to RosettaNet CEO Fadi Chehad é . A standardized product identification system will also enable true interoperability of electronic catalogs for the first time.

Eliminating the use of proprietary product identification numbers between supply chain partners, which at the present time change or aggregate as the item moves from manufacturer to distributor to reseller, will reduce errors, confusion and returns within distribution channels, Chehad é noted.

Supply chain companies typically sort out product numbering issues manually or with custom programming. "The potential for cost reduction is substantial," said Chehad é . "The driving force, however, is buyers within the supply chain where confusion is at its peak. They are turning to web shopping for speed and convenience, and they are increasingly vocal about search bottlenecks and inaccuracies caused by multiple ID numbers for the same product parts."

The GTIN as defined in the EAN-UCC system will uniquely identify the thousands of products and services in the computer industry. The 14-digit GTIN will facilitate worldwide communication and e-commerce processes, including full tracking and tracing of inventories, orders, billing and transportation. GTIN is a new term that encompasses the ubiquitous U.P.C. (Universal Product Code) and EAN symbols on retail products.

Companies that manufacture products will assign a GTIN to each product. The GTIN is made unique by the UCC/EAN assigned company identifier. The remaining digits include a unique item number for each product or service, an indicator to identify the various packaging levels (if applicable) and a calculated check digit to insure data integrity. "Participating companies do not have to re-engineer their databases to accommodate the new identification standard," Chehad é said. "Rather, they will map their existing product numbering system to the GTIN standard."

The UCC has assigned a staff to work exclusively with RosettaNet members, according to John McInerney, Director, RosettaNet Initiative, UCC. A first level help desk has been set up by RosettaNet champions within the UCC customer service organization to handle telephone and email inquiries. "All inquiries will be logged, and frequently asked questions will be posted on our web site along with our portfolio of educational materials," McInerney said.

The UCC and EAN International have a membership of 800,000 companies doing business in over 140 countries worldwide and are solely dedicated to establishing and promoting voluntary industry standards for product identification and related electronic communications. "Without a standardized way of identifying products and services, supply chain technologies only serve to automate existing inefficiencies," McInerney said.

With the GTIN, supply chain members can be assured of a globally unique ID number for each product anywhere in the world, with the benefits of accurate communications, minimal database management and maintenance, reduction of errors in ordering, billing and shipping, and lower procurement costs overall.

Agreements such as standardizing on product identification numbers are critical throughout the RosettaNet partner-to-partner e-commerce initiative to align business processes of the EC and IT supply chains. Currently in the pilot phase, member companies are testing "partner interface processes" (PIPs) that define how business processes are conducted between manufacturers, software publishers, distributors, resellers and system integrators. Standardized product identification numbers (the GTIN) are a critical element of numerous PIPs.

"The selection of UCC standards is a timely milestone that will enable RosettaNet members to meet their commitment of rolling out production systems by February 2, 2000," Chehad é said.

Tom Rittenhouse, president and CEO of the UCC, said he is "proud that RosettaNet has embraced the GTIN." He noted, from his Princeton-based headquarters, that "broad industry initiative like RosettaNet has tremendous opportunity to bring efficiencies to the supply chain that ultimately benefit all the end users and customers. The UCC is committed to ongoing support of RosettaNet and its partners."