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1GS
GS1 Global User Manual
Table of Contents
1. 2. Introduction ..................................................................................................................................5 Basics and Principles of the GS1 SYSTEM ..................................................................................6
2.1. 2.2. Areas of Applications ......................................................................................................................... 6 Numbering System............................................................................................................................. 6 2.2.1. Global Trade Item Number (GTIN)........................................................................................... 6 2.2.2. Serial Shipping Container Code (SSCC) ................................................................................. 6 2.2.3. Global Location Number (GLN)................................................................................................ 7 2.3. Bar Code Symbologies ...................................................................................................................... 7 2.3.1. EAN/UPC.................................................................................................................................. 7 2.3.2. ITF-14 ....................................................................................................................................... 8 2.3.3. GS1-128 ................................................................................................................................... 8
3.
Identification of Trade Items........................................................................................................8

3.1. GTIN Numbering Structures............................................................................................................. 11 3.1.1. GS1 Company Prefix.............................................................................................................. 11 3.1.2. Item Reference ....................................................................................................................... 11 3.1.3. Check Digit ............................................................................................................................. 11 3.1.4. Indicator.................................................................................................................................. 12 Who Is Responsible For Numbering Trade Items?.......................................................................... 12 3.2.1. The general rule ..................................................................................................................... 12 3.2.2. Exceptions .............................................................................................................................. 12 What to Consider When Numbering a Trade Item?......................................................................... 13 3.3.1. Packaging Configuration ........................................................................................................ 14 3.3.2. The uses of the GTIN ............................................................................................................. 15 3.3.3. Pre-priced items ..................................................................................................................... 15 What if the Legal Status of a Brand Owner Changes? .................................................................... 15 3.4.1. Acquisition or Merger ............................................................................................................. 15 3.4.2. Partial Purchase ..................................................................................................................... 15 3.4.3. Split or De-Merger .................................................................................................................. 16 When Can a GTIN be Re-Used? ..................................................................................................... 16
3.2.
3.3.
3.4.
3.5.
4. 5.
Small Products ...........................................................................................................................16 Processing the GTIN ..................................................................................................................17

5.1. 5.2. 5.3. 5.4. The Content of The Database.......................................................................................................... 17 Transmission of Product Information ............................................................................................... 17 How Should the Information be Exchanged?................................................................................... 18 When Should Communication Occur?............................................................................................. 18
6.
Symbol Marking Trade Items.....................................................................................................19

6.1. Features Of Bar Codes .................................................................................................................... 19 6.1.1. Sizes....................................................................................................................................... 19
August-2006, Issue 8.1
All contents copyright GS1 2006
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6.1.2. Quiet Zones ............................................................................................................................ 20 6.1.3. Colours and Contrast ............................................................................................................. 20 6.1.4. Print Quality ............................................................................................................................ 20 6.1.5. Symbol Placement Guidelines ............................................................................................... 20 6.2. Bar Code Types Used In GS1 System ............................................................................................ 24 6.2.1. EAN/UPC Symbols................................................................................................................. 24 6.2.2. ITF-14 Symbol ........................................................................................................................ 26 6.2.3. GS1-128 Symbol: ................................................................................................................... 27 6.3. Considerations on the Use of the Symbologies ............................................................................... 27 6.4. Choosing Between Bar Codes ......................................................................................................... 27
7. 8.
Application Identifiers (AIs).......................................................................................................30 Logistic Units..............................................................................................................................31

8.1. 8.2. The SSCC ........................................................................................................................................ 31 The Logistics Label .......................................................................................................................... 32 8.2.1. Representation of information ................................................................................................ 32 8.2.2. Label Design........................................................................................................................... 32
9.
Variable Measure Trade Items...................................................................................................34

9.1. 9.2. Retail Variable Measure Trade Items .............................................................................................. 34 Non Retail Variable Measure Trade Items....................................................................................... 35
10.
Special Cases ......................................................................................................................36

10.1. 10.2. 10.3. 10.4. Books, Serial Publications and Printed Sheet Music ....................................................................... 36 Company Internal Numbering in a Store or Warehouse .................................................................. 36 The Numbering of Coupons ............................................................................................................. 36 Other Special Solutions.................................................................................................................... 37
11. 12. 13. 14. A.
Global Location Numbers...................................................................................................37 Electronic Data Interchange...............................................................................................37 Frequently Asked Questions..............................................................................................39 Glossary ...............................................................................................................................39 Appendices .................................................................................................................................44
A.1 A.2 A.3 A.4 A.1.1. A.1.2. A.1.3. A.1.4. A.1.5. Standard Check Digit Calculations of GS1 Data Structures ............................................................ 44 GTIN-12 Identification Numbers in a UPC-E Symbol ...................................................................... 44 Dimensions of Modules and Symbols at Different Magnification Factor ......................................... 46 GS1 Application Identifiers............................................................................................................... 47 All Application Identifiers .................................................................................................................. 47 Metric trade measures ..................................................................................................................... 49 Non-Metric Trade Measures ............................................................................................................ 49 Metric Logistic Measures ................................................................................................................. 50 Non-Metric Logistic Measures.......................................................................................................... 50
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1.
Introduction
Rapid evolution of roles in the value chain, new channels of distribution, shifting demand patterns and increased service expectations have raised the critical importance of information technology in business processes. The GS1 Standards facilitate national and international communication between all trading partners participating in supply and demand chains, including raw material suppliers, manufacturers, wholesalers, distributors, retailers, hospitals and final clients or consumers. Many businesses are expanding their distribution channels towards markets and clients that may not be traditional for them, into other sectors of industry or are required to meet traceability requirements. A business that chooses an industry-specific standard will face the potentially high costs of maintaining multiple systems if it wants to sell its products or services or simply communicate outside its "closed-world". Many operations which are essential for the efficiency of trade and the optimisation of the supply and demand chains depend on the accuracy of identification of the products exchanged, services rendered, and/or locations involved. The GS1 System is a set of standards enabling the efficient management of global, multi-industry supply chains by uniquely identifying products, shipping units, assets, locations and services. It facilitates electronic commerce processes including full tracking and traceability. The identification numbers can be represented in bar code symbols to enable electronic reading at point of sale, when being received at warehouses, or at any other point where it is required in business processes. The system is designed to overcome the limitations of using company, organisation or sector specific coding systems, and to make trading much more efficient and more responsive to customers. These identifying numbers are also used in electronic data interchange (EDI) and Global Data Ssynchronisation to improve the speed and accuracy of communication. This manual only provides information about the numbering system, bar codes, and scanning. For information about EDI or GDSN, please refer www.gs1.org. As well as providing unique identifying numbers, the system also provides for additional information such as best before dates, serial numbers and batch numbers to be shown in a bar coded form. These are particularly important to achieve traceability. Following the principles and design of the GS1 System means that users can design applications to process GS1 data automatically. The system logic guarantees that data captured from bar codes produces unambiguous electronic messages and the processing of them can be fully preprogrammed. The system is designed to be used in any industry, trade or public sector, and any changes to the system are introduced so that they do not disrupt current users. The application of the GS1 System can result in significant improvements in logistic operations, reduction of paperwork costs, shorter order and delivery lead times, increased accuracy and better management of the supply and demand chains. Enormous costs savings are realised daily by user companies who have adopted the GS1 System, because they apply the same solution for communicating with all their trading partners, while remaining entirely free to run internal applications at their own discretion.
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2.
2.1.
Basics and Principles of the GS1 SYSTEM

Areas of Applications
The GS1 System has different areas of application that include trade items, logistic units, assets and locations. These applications rely on data structures by which all relevant items and their data can be identified. The numbers are the keys to access databases and to identify unambiguously items handled, in all messages of a transaction. The data structures are used to ensure globally unique identification and do not give any meaning in the number. All information that describes a product or a service and its characteristics are to be found in databases. They are communicated from a supplier to a user once, before the first transaction either by using standard messages or by consultation of electronic catalogues. The numbers are represented in bar codes to allow automatic data capture at each point where an item leaves or enters a premises. Bar codes are usually included in the production process at the producer site; they are either preprinted with other information present in the packaging, or a label is affixed to the item on the production line. The same numbers are also used in EDI messages to allow all information on the transaction of the item to be transferred to the relevant trading partners. The data structures that are provided guarantee world-wide uniqueness within the relevant area of application.
2.2.
Numbering System
The numbering system has three main elements, which are explained in this manual: Global Trade Item Number, SSCC and Global Location Number.
2.2.1.
Global Trade Item Number (GTIN)

The GTIN is a number used for the unique identification of trade items world-wide. Note: A trade item is any item (product or service) upon which there is a need to retrieve predefined information and that may be priced, ordered or invoiced for trade between participants at any point in any supply chain. The identification and symbol marking of trade items enables the automation of the retail point-of-sale (through price look up files), of products receiving, inventory management, automatic re-ordering, sales analysis, and a wide range of other business applications. Examples: A can of paint sold to a final consumer, a box of 6 cans of paint, a case containing 24 boxes of one kilo of lawn fertiliser, a multi-pack consisting of one shampoo and one conditioner.
2.2.2.
Serial Shipping Container Code (SSCC)

The SSCC (Serial Shipping Container Code) is a number, which is used for the unique identification of logistic (transport and/or storage) units. Note: A Logistic Unit is an item of any composition established for transport and/or storage which needs to be managed throughout the supply chain.
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SSCC can be encoded in a GS1-128 bar code. Scanning the SSCC marked on each Logistic Unit allows the physical movement of units to be individually tracked and traced by providing a link between the physical movement of items and the associated information flow. It also provides the opportunity to implement a wide range of applications such as cross docking, shipment routing, automated receiving, etc. Examples: A box containing 12 skirts and 20 jackets in various sizes and colours is a Logistic Unit as is a pallet of 40 cases each containing 12 cans of paint.
2.2.3.
Global Location Number (GLN)

The GLN is a number used to identify a company or organisation as a legal entity. GLNs are also used to identify physical locations. The use of location numbers is a pre-requisite for efficient EDI.
2.3.
Bar Code Symbologies

Three bar code symbologies are very widely used in the GS1 System: EAN/UPC ITF-14 GS1-128 Only the EAN/UPC Bar Codes should be used for reading at point-of-sale, whereas in other applications, such as back-door receiving or in warehouses any of the three different symbologies can be used, EAN/UPC, ITF-14 or GS1-128. Advice on choosing between them is given in Section 6.4, Choosing Between Bar Codes.
2.3.1.
EAN/UPC
The EAN and UPC symbols can be read omnidirectionally. They must be used for all items that are scanned at the Point-of-Sale and may be used on other trade items.
Figure 2-1 EAN/UPC Symbols
EAN-13
UPC-A
4 512345 678906 >
12345 68789
EAN-8
UPC-E
< 3456 9870 >
0 345678
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2.3.2.
ITF-14
The use of the ITF-14 (Interleaved 2 of 5) Symbology is restricted to the bar coding of identification numbers on trade items NOT passing through retail checkouts. This symbology is better suited for direct printing onto corrugated fibreboard.
Figure 2-2 ITF-14 Symbol
1
2.3.3. GS1-128
89
31234
56789
The GS1-128 Symbology is a variant of Code 128 Symbology. Its use is exclusively licensed to GS1. It is not intended to be read on items passing through retail checkouts. This is the only GS1 endorsed symbology that allows the encoding of information beyond GTIN.
Figure 2-3 GS1-128 Symbol
( 01) 04601234567893
3.
Identification of Trade Items

A trade item is defined as any item (product or service) upon which there is a need to retrieve predefined information and that may be priced, ordered or invoiced at any point in any supply chain. This definition covers raw materials through to end-user products and also includes services, all of which have pre-defined characteristics. The trade items are numbered by a GTIN using four data structures: GTIN-8, GTIN-12, GTIN-13 and GTIN-14 that can be stored in a 14-digit field. The choice of data structure depends on the nature of the item and on the scope of the users applications. A major application of the GS1 System is the identification of items intended for scanning at the retail point of sale retail items. These are to be identified with a GTIN-13 Number. If they are very small a GTIN-8 Number (or a zero-suppressed GTIN-12) is used.
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Since January 2005, North American users accept GTIN-13 Identification Numbers and EAN-13 Bar Codes. Prior to this time, companies selling goods in the American and Canadian markets were required to use a GTIN-12 data structure represented in a UPC-A or UPC-E Symbol. A trade item which can be sold in different measures is known as a Variable Measure Trade Item, for example pre-packed fruit and vegetables or meat products sold by weight, and such trade items are subject to specific rules described in Section 9, Variable Measure Trade Items. Specific rules also exist for books, serial publications, printed sheet music or products that are not sold in open 10, environments. These special cases are treated in Section
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Special Cases. Trade items not sold through retail outlets may be packaged in a wide variety of ways such as a fibreboard case, a covered or banded pallet, a film-wrapped tray, a crate with bottles, etc. Such items can be identified in different ways: By allocating a specific GTIN-13, GTIN-12, or GTIN-8 Number. Alternatively, by allocating a GTIN-14 Number. This is formed by taking the number allocated to the trade item contained, and preceding the number by an indicator, which can take the value 1 to 8. This solution is only available for homogeneous groupings of standard trade items, where all units contained in the group are identical.
Figure 3-1 GTIN Numbering Examples
GTIN-13: 5412150000154
either: GTIN-14: 15412150000151 or: GTIN-13: 5412150000161
either: GTIN-14: 25412150000158 or: GTIN-13: 5412150000178
Note: These examples show both numbering solutions.
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3.1.
GTIN Numbering Structures

There are four numbering structures for GTIN that are described below.
GTIN-13 Data Structure
GS1 Company Prefix
Item Reference
Check Digit N13
N1 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12
U.P.C. Company Prefix
Item Reference
Check Digit N12
N1 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11
GTIN-8 Prefix
Item Reference
Check Digit N8
N1
N2
N3
N4
N5
N6
N7
3.1.1.
GS1 Company Prefix

The first two or three digits N1, N2, N3 constitute the GS1 Prefix allocated by GS1 Global Office to each GS1 Member Organisation. It does not mean that the item is produced or distributed in the country to which the prefix has been allocated. The GS1 Prefix only denotes the Member Organisation that allocated the Company Number. The GS1 Company Number that follows the GS1 Prefix is allocated by the Member Organisation. The GS1 Prefix and the Company Number form the GS1 Company Prefix. In general it comprises six to ten digits depending on the needs of the company.
3.1.2.
Item Reference
The Item Reference is composed typically of one to six digits. It is a non-significant number, which means that the individual digits in the number do not relate to any classification or convey any specific information. The simplest way to allocate Item References is sequentially, that is 000, 001, 002, 003, etc.
3.1.3.
Check Digit
The Check Digit is the last digit (rightmost) of the GTIN. It is calculated from all other digits in the number, in order to ensure that the bar code has been correctly scanned or that the number is correctly composed.
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Indicator
GTIN of the items contained (without Check Digit) N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12 N13
Check Digit N14
N1
3.1.4.
Indicator
This is only used in the GTIN-14 Number. It takes the value 1 to 8 for fixed quantity trade items. The value 9 for variable quantity trade items. The simplest way to allocate the indicator is sequentially that is 1, 2, 3 to each grouping of a trade unit. Important: The number must always be used as a whole. No processing of data should be based on any part of a GTIN. To be written by each Member Organisation: The local structures of GS1 Company Prefixes and Item References
3.2.
3.2.1.
Who Is Responsible For Numbering Trade Items?

The general rule
The brand owner, the organisation that owns the specifications of the product regardless of where and by whom it is manufactured, is normally responsible for the allocation of the GTIN. On joining a GS1 Member Organisation the brand owner receives a GS1 Company Prefix, which is for the sole use of the company to which it is assigned. The GS1 Company Prefix may not be sold, leased or given, in whole or in a part, for use by any other company. The brand-owner will therefore be: The manufacturer or supplier: If a company manufactures the product itself or has it manufactured in any other country and sells it under a brand name that belongs to the manufacturer or supplier. The importer or wholesaler: If the importer or wholesaler has the product manufactured in any country and sells it under a brand name that belongs to the company. If the importer or wholesaler changes the product (for example by modifying the packaging of the article). The retailer: If the retailer has the product manufactured in any country and sells it under a brand name that belongs to the retailer.
3.2.2.
Exceptions
If an item is not given a GTIN at source, the importer or intermediary may, at the request of its clients, assign it a temporary GTIN. However, it is preferable for the manufacturer to assign the number. On the other hand, the retailer can assign an internal number to an item that does not yet have a GTIN assigned to it, for use within the store. This method is described in the section dealing with company internal numbering and is found in Section 10, Special Cases. Items that are non-branded - have no brand name or are generic items, not private labels are still assigned GTINs by their manufacturer. As different manufacturers may supply items that appear identical to the consumer, it is possible that items that are apparently the same have different GTINs. Companies that trade these items need to organise their computer
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applications (replenishment programs for example) to cope with this eventuality. Examples of items that sometimes have no brand are plasterboard, candles, drinking glasses, etc. Important: Some companies produce the same article in several countries, or in several plants. In this case the GTIN should be allocated centrally and managed by one of the companies in the group or one of its production facilities.
3.3.
What to Consider When Numbering a Trade Item?

A separate unique GTIN is required whenever any of the pre-defined characteristics of an item are different in any way that is relevant to the trading process. This implies that each variant must be assigned a different number whenever the variation is, in any way, apparent and significant to any partner in the supply chain, to the final user or to the retail customer. What is understood to be an apparent and significant variation may differ from industry to industry. Therefore these rules should be respected. The basic characteristics of a trade item are: The Product Name, Product Brand, and Product Description The trade item type and variety The net quantity of a product
If the trade item is a grouping, the number of elementary items contained, and their sub-division in sub-packaging units, the nature of the grouping (carton, pallet, box-pallet, flat-pallet)
This list is not exhaustive. The company responsible for allocating the numbers must ensure that each trade item corresponds to one and only one GTIN. Once it has been defined, the GTIN of the trade item must not change as long as the characteristics of the trade item do not change. A major modification of one of the basic elements which characterises the trade unit will generally lead to the allocation of a new GTIN. Examples: Allocate a new GTIN: the net volume of mineral water has increased from 0.25 litre to 0.33 litre; Maintain the same GTIN: the colour of a juice bottle label has been changed from pale pink to darker pink. In general, for products where the date is important, different trade item numbers are required. Examples would be the various vintages of a wine, successive editions of a road map, annual guides, diaries or appointment books. These all constitute different trade items. If a new GTIN is allocated to an item, the GTIN assigned to any grouping containing that item should also be assigned a new GTIN. However, it should be noted that: Price is not a relevant criteria for changing a GTIN except when the price is printed directly on the trade item. National, federal or local regulations may apply and take precedence over these rules. For example, in some industries such as healthcare, regulations or other requirements may dictate that any trade item changes require a new GTIN. The detailed rules for GTIN Allocation in various business situations can be found on the website www.gs1.org/gtinrules. It also gives a detailed rationale and consequence of not following the given rule.
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3.3.1.
Packaging Configuration
One trade item package/container may be contained in another trade item package/container. Each level of a trade item must have its own GTIN; GTIN-13, GTIN-12, GTIN-8, or GTIN-14 depending on whether it is a retail item or not. If not, it depends on the numbering option adopted by the brand owner. Companies should take into consideration the channels where the products are sold and what the requirements are. The following decision tree presents the choice of options for GTIN.
Figure 3-2 Choice of Options for GTIN
Yes
No
Retail?
Very Small?
GTIN-13 GTIN-12
No
Yes
GTIN-13 or GTIN-12 or GTIN-14
GTIN-8 or GTIN-13 or GTIN-12 1
Figure 3-3 GTIN Numbering Examples
GTIN-13: 5412345000013
GTIN-13: 5412345000433
GTIN-13: 5412345000693
GTIN-13: 5412345000259
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3.3.2.
The uses of the GTIN

Whatever the country where the item is sold, its GTIN will remain valid. It is independent of prices and methods of supply. The GTIN is the number which appears in catalogues, product sheets, price lists and on documents or messages exchanged for the transaction to take place (orders, despatch advice or delivery notes and invoices). A GTIN can also be allocated to services that may be invoiced, such as transport or storage for the account of a customer, etc.
3.3.3.
Pre-priced items
Pre-pricing is discouraged as a trade practice as it introduces complexity for trade item file maintenance throughout the supply chain. If however, the price is marked on the item, the GTIN should be changed when the price marked on the item changes (except for variable measure items, where other rules apply). Note: See Section 9, Variable Measure Trade Items for information on variable measure items.
3.4.
What if the Legal Status of a Brand Owner Changes?

Although National, federal or local regulations may apply and take precedence over these rules, the guidelines below should be followed as long as they are compatible with the local laws. Important: If a company changes legal status, or the ownership of the GS1 Company Prefix changes, as the result of an acquisition or merger, the Member Organisation must be notified within one year.
3.4.1.
Acquisition or Merger
The Member Organisation has to be notified of the acquisition or merger within one year. The rule for an acquisition or merger is that the merged company acquires the numbers of the old company. Products that the acquired company produced under its GS1 Company Prefix can still be produced using the same prefix after the merger, since the acquiring company has control of the acquired companys GS1 Company Prefix. If it so desires, the acquiring company can label all acquired products using their existing GS1 Company Prefix. The importance of ensuring trading partners are informed of any changes, in a timely manner, cannot be overemphasised.
3.4.2.
Partial Purchase
If a company purchases a division of a company whose GS1 Company Prefix is used in divisions not purchased, then the acquiring company must change the GTINs for products in the purchased division, as well as any related GLNs, within one year. The rules concerning the use of the sellers GTINs, and other GS1 Identification Keys, should be taken into consideration when drawing up the purchase contract. At the earliest opportunity, the buyer should phase in new numbers, from its own range of numbers, for items whose brand name it has acquired. The buyer will be able to do this, for example, when packaging is redesigned or reprinted.
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3.4.3.
Split or De-Merger
When a company splits into two or more separate companies it is necessary that the GS1 Company Prefix assigned to the original company be transferred to one, and only one, of the new companies. Any company left without a GS1 Company Prefix will need to apply to a Member Organisation to obtain a new one. The decision on which of the new companies should take the old or new GS1 Company Prefix should be made so as to minimise the number of changes to GTINs that will be required. The decision should be part of the legal arrangements that set up the new companies. It is not necessary for existing stocks of items to be renumbered. However, when any of the demerged companies has trade items that are numbered from a GS1 Company Prefix that it no longer holds, then it should renumber those items using its own GS1 Company Prefix when new labelling or packaging is produced. Customers should be notified well in advance of the changes. De-merged companies that retain a GS1 Company Prefix must keep a record of the GTINs created from their prefix that have been allocated to items they no longer own. They must not reuse these GTINs for a period of at least four years after the company that split away who owns those items last supplied the goods identified by those GTINs. Therefore the company that did not retain the Company Prefix has to keep the company that did maintain the prefix informed. This is particularly important in regard to the dates on which the goods were last supplied with the original GTIN and they should guarantee a date by which the GTIN will be changed.
3.5.
When Can a GTIN be Re-Used?

GTINs allocated to trade items which have become obsolete must not be re-used for another trade item until at least 48 months have elapsed from the date the original trade item was last supplied to the customer. In the case of garments, the minimum period is reduced to 30 months. A longer period may be needed depending upon the type of goods. For example steel beams may be stored for many years before entering the supply chain. Brand owners should consider what would be a reasonable period for the trade item to remain in the supply chain cycle before re-using GTINs. Even if the product is no longer in the supply chain, its number may still be kept in databases for historic records.
4.
Small Products
The allocation of GTIN-8 Identification Numbers is restricted to items that genuinely cannot accommodate an EAN-13 or UPC-A Bar Code and are assigned individually upon request. Before deciding to use a GTIN-8 Identification Number, the user should first consider (usually jointly with their printer) all possible options for using a GTIN-13 Identification Number. These may include: Whether the symbol can be reduced in size, i.e. printed at a lower magnification, taking into account the minimum bar code print quality requirements. Whether the label can reasonably be changed (label means the total printed design surface, whether or not affixed separately). This would enable the printer's recommended size of standard EAN/UPC Symbol to be included. This could be achieved by redesigning the label, by increasing the label size, (especially where the existing label is small in comparison with the pack area) or by the use of an additional label. Whether a truncated symbol can be used. A truncated symbol (a symbol of normal length, but of reduced height) may only be used if there is absolutely no possibility of printing a symbol in full size. Truncation removes the symbol's omni-directional scanning capability. A symbol with excessive truncation will not be of any practical use. Users considering this option are advised to consult their customers to see if an acceptable compromise can be reached.
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A GTIN-8 Number may only be used: If the EAN-13 Bar Code Symbol, in the size required as a result of print quality studies, exceeds either 25% of the largest side of the printed label area or 12.5% of the total printable area. If either the largest side of the printed label is less than 40 cm or the total printable area is less than 80 cm. On cylindrical products with diameter less than 3 cm. U.P.C. Company Prefixes beginning with zero can be used to construct GTINs that can be used in UPC-E Symbols for small products. Distribution of these Company Prefixes is restricted to demonstrated need only (e.g. for items whose packaging does not include enough available space to permit the use of another symbol). Companies with these prefixes are encouraged to manage their finite resources carefully. Technical details of UPC-E representation of GTIN-12 Numbers are described in Appendix A.2, GTIN12 Identification Numbers in a UPC-E Symbol. Further details are available from www.gs1us.org.
5.
5.1.
Processing the GTIN

The Content of The Database
The GTIN is a unique identification number for a trade item. This uniqueness is achieved whichever of the four data structures (described in Section 3.1, GTIN Numbering Structures) is used. These structures are to be stored in a 14-digit data field as shown below:
Figure 5-1 GTIN Format Data structures Global Trade Item Number (GTIN Format) T1 GTIN-14 GTIN-13 GTIN-12 GTIN-8 N1 0 0 0 T2 N2 N1 0 0 T3 N3 N2 N1 0 T4 N4 N3 N2 0 T5 N5 N4 N3 0 T6 N6 N5 N4 0 T7 N7 N6 N5 N1 T8 N8 N7 N6 N2 T9 N9 N8 N7 N3 T10 N10 N9 N8 N4 T11 N11 N10 N9 N5 T12 N12 N11 N10 N6 T13 N13 N12 N11 N7 T14 N14 N13 N12 N8
In cases where there are less than 14 numbers in a data structure e.g. GTIN-8, the numbers must be right justified in a 14-digit field and filled with zeros in the leftmost positions. The GTIN is an access key to all data related to the particular trade item as it is identified, that is stored in the data files or in transaction messages. Links have to be created between hierarchies of trade items. Such links are those between each unit and all the trade items within this particular unit. An example would be the links between a can of paint, a box of ten cans of paint, and a pallet of 24 boxes of ten cans of paint. This will enable customers to control their stock-keeping and ordering processes, and allow customers to compare sales at the check out with the number of units they have received or still have in stock.
5.2.
Transmission of Product Information

Transmission of information in regard to the item is a very important step in the relationship between supplier and customer, and all third parties. This information is used in a wide range of processes in demand and supply chains. Most processes cannot be carried out correctly if the proper item information is not available, an example would be
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when a cashier scans an item but the cash register displays the message unknown item. However, there are many other processes such as ordering, invoicing and stockroom operations when it is essential to have the correct item information. Therefore, in addition to the flow of goods, there is a flow of information necessary between trading partners. Comprehensive information should be transmitted: Name of the supplier and the GLN of the company Date of application (date from which the trading partners may use the information) GTIN of the trade item A full product description for EDI messages or for the documents relating to the transaction and an abbreviated description for the point of sale The physical characteristics of the trade item including dimensions, net weight Description of the various standard groupings of the trade item, including the number of single trade items contained in larger trade units GTINs allocated to these items, in a 14 digit field Description of the pallet or the palletisation pattern The GTIN and the quantity of units of the lower level (if any).
5.3.
How Should the Information be Exchanged?

The preferred methods are EDI messages sent from the suppliers to all its customers or alternatively by way of a central electronic catalogue (data synchronisation). If either of these methods are used the data should be structured in standard messages sent automatically. If these alternatives are not possible, a floppy disk with standard messages could be used. If that is not an option, then a paper document containing the different characteristics and conditions of purchase of the product would suffice.
5.4.
When Should Communication Occur?

A number of actions are vital to ensure that GTINs are accurately communicated within the Supply Chain. These ensure that the data associated with any scanned bar code can be associated with accurate, up to date, data. This is particularly essential for items scanned at the Point of Sale where the absence of accurate data may have legal implications. Trading partners should make an agreement about the appropriate time period within which the information will be communicated. Communication about a GTIN is essential in cases listed below. In any situation, the information must be sent well ahead of time in order to give the trading partner a chance to process it. 1. New trade relationship. All the GTINs of products involved in a new trade relationship should be sent to the trading partner with the associated data. 2. New item in the assortment. The GTIN should be passed on as a matter of course during the first contact between the account manager and the buyer. 3. New GTIN allocated. If a change in the product demands a new number, the new GTIN must be notified immediately to the partner when they are being notified of the item change. The information must be given to the trading partner in ample time before the goods concerned are supplied.
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4. Promotions with a different GTIN. Many retailers plan promotional special offers well in advance. The special offers are often preceded by a registration procedure, which makes it essential that the GTINs are notified well in advance. It is recommended that this should be done as early as possible when the initial contact relating to a special offer is being made. 5. Temporary replacement item with a different GTIN from the normal item. If for whatever reason, a manufacturer supplies an item with a different GTIN from the one expected by the trading partner, it is essential that the new GTIN is forwarded and entered into the database in time. 6. Rack jobbing (also known as vendor refill). It may be possible that a rack jobber restocks an item on the shelf that has a different GTIN, which has not yet been entered in the database. Rack jobbers should therefore always check whether the GTIN on the item is the same as that usually present on the shelf. If not, then the person responsible for the database in the store must be notified of the change.
6.
6.1.
Symbol Marking Trade Items

Features Of Bar Codes
There are several ways to apply a bar code to an item: Integrating the bar code into the packaging design On-line direct printing onto packaging Affixing a pre-printed label
6.1.1.
Sizes
Bar codes can be printed in various sizes. The size to be selected, besides of the scanning environment, depends also on the printing conditions. A small bar code can be used if good quality printing is coupled with a good quality substrate. It is not possible to select an arbitrary symbol size to fit a predetermined space on the package. For each type of bar code, the size may vary between a minimum size and a maximum size. For direct printing, it is determined by the printer after tests. Equipment that constructs bar codes from pixels or dots will not be able to produce bar codes in the full range of sizes. Another factor that should always be taken into account when deciding about the bar code symbol size, should be the environment in which it is to be scanned. Symbols intended for retail applications may be as small as the print quality permits, whereas the bar codes for warehouse environment should be as large as it is necessary to allow scanning from a considerable distance, i.e. by an operator of a truck. Prior to 1999, the size of a bar code in GS1 System had been expressed as a Magnification Factor (multiplication of a theoretical, ideal width and height values). It assumed a fixed ratio between the Xdimension of a symbol (its narrowest element) and its height, which did not hold true for some symbologies. For this reason, the Magnification Factor term was removed from the GS1 General Specifications and the bar code size has been defined by setting the minimum, target & maximum X-dimension for each symbology, depending on the application in which the given symbol is to be used. The minimum symbol height must be respected. It should be noted, however, that increased symbol height results in improved scanning rates. The sizes for all GS1 endorsed symbologies are defined in GS1 General Specifications, Section 5.4, GS1 System Symbol Specification Tables. However, as a legacy after the previous specification, a lot of printing devices producing GS1 bar code symbols still use the Magnification Factor for specifying the size of a symbol. Therefore, in Section 6.2
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Bar Code Types Used In GS1 System, the Magnification Factor method is still used, along with minimum and maximum size of each bar code (including min. and max. height).
6.1.2.
Quiet Zones
All types of bar codes must have Quiet Zones, before the first bar and after the last bar. This Quiet Zone is extremely important and must be respected. The size of the Quiet Zone area varies depending on the symbol size and type of the bar code. Any print within Quiet Zones can prevent the reading of the bar code symbol.
6.1.3.
Colours and Contrast

Scanners work by measuring reflectance. There must be sufficient contrast between dark bars and light spaces. There must be sufficient density of ink in the bars not to create voids. Scanners use a beam of red light. A contrast that seems to be satisfactory for human eyes may be insufficient for scanners. Bar codes can be printed in various colours. A general indication is that light colours including red and orange are suitable for the light bars (spaces) and quiet zones. Dark colours including black, blue, and green are suitable for the bars. Composite colours are not adequate to print bar codes. It is best to use solid colours. High-gloss substrates may change the reflectance and checks must be made before printing. Transparent over-wraps may also reduce contrast and checks on the completed package should be made if over-wrapping is used.
6.1.4.
Print Quality
The printing conditions must be checked regularly throughout the print run to ensure they have not deteriorated since the initial assessment was made. There are various means to assess the quality of a bar code. Your GS1 Member Organisation can advise you on this point. Simple visual ways can be used. An example is the printing of an H of given dimensions inside the bearer bar of an ITF-14. When determining which orientation to print the bar code, the print process involved should be taken into account. For example, when using a flexographic process, it is essential to print the bar code in the print direction because of the ink "spread" associated with this printing process. When using a lithography process, spread is usually insignificant. In all cases the printer should be consulted. For more information on print quality see the GS1 General Specifications and the GS1 Bar Code Verification for Linear Symbols brochure.
6.1.5.
Symbol Placement Guidelines

Productivity and scanning accuracy improve considerably when the bar code location is predictable. Consistency in the location of the bar code achieves maximum productivity in any scanning environment.
6.1.5.1. Symbol Placement Guidelines for Retail Items

The bar code, including the human readable digits underneath (identification number) must be visible and free of any obstacles preventing it from scanning. Never allow two bar codes encoding different GTINs to be visible on a package. This is particularly relevant to multi-packs, especially those with clear wrapping. Therefore, multi-packs must carry a separate GTIN, with all internal bar codes obscured.
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Figure 6-1 Example of GTINs on Multi-Packs
If the item is random wrapped, the same bar code can be printed more than once on the wrapping. This ensures that one complete bar code is always visible.
Figure 6-2 Example of Random Wrapped GTINs
Scanning is most successful when the bar code is printed on a reasonably smooth surface. Avoid printing around the corners or on folds, creases, seams, and any other uneven packaging area.
Figure 6-3 Incorrect Barcode Surface Examples
14141 00086
Sometimes the irregular shape of packaging prevents the bar code from flat (parallel) contact with the scanning surface of slot scanners. This applies in particular to carded, blister-packed, or concave items.
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Figure 6-4 Additional Barcode Surface Examples
On cylindrical products, where the printing direction allows, it is generally desirable that the bars are perpendicular to the axis of the cylinder (ladder style), so that a scan line can pass through the symbol on as near a flat plane as possible. This caters for the problems associated with curves on items such as cans and bottles. The ladder orientation is imperative for curved surfaces with a small radius.
Figure 6-5 Cylindrical Barcode Surface Examples
The preferred placement for a bar code is on the lower right quadrant of the back, respecting the proper Quiet Zone areas around the bar code symbol and the edge rule. The alternative is on the lower quadrant of another side of the container.
Figure 6-6 Barcode on the Lower Right Quadrant
Edge rule: The bar code symbol must not be closer than 8 mm or farther than 100 mm from any edge of the package / container.
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6.1.5.2. Symbol Placement Guidelines on Non-Retail Items

The minimum requirement is to place at least one bar code symbol on each trade item or logistics unit. However, the best practice is to fix two labels to adjacent sides of items packaged for transport. On Cartons and Outer Cases The lower edge of bar should be located 32 mm from the natural base of the item. Including Quiet Zones, the symbol should be at least 19 mm from the vertical edges. When using an ITF-14 Bar Code, the outer edges of the bar code's left or right bearer bar should be a minimum of 19 mm from the vertical edges of the side of the item.
Figure 6-7 Barcodes on Cartons and Outer Cases
On Pallets For pallets labels should be placed so that all the bar code symbols are at a height of between 400 mm and 800 mm from the base of the unit, and no closer than 50 mm from the vertical edge.
Figure 6-8 Barcodes on Pallets
h < 800 mm (32)
h> 400 mm (16)
x> 50 mm (2)
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On Shallow Trays and Cases If the height of a case or tray is less than 50 mm and printing a full height bar code with the human readable interpretation below the bars is impossible, or if the construction of the unit prevents accommodation of the full symbol height, the following options should be considered in this order of preference: 1. Place the Human Readable Interpretation to the left of the symbol, outside the compulsory Quiet Zones.
Figure 6-9 Barcodes on Shallow Trays and Cases
2. When the height of the unit is less than 32 mm, the symbol may be placed on the top of the package. The symbol should be placed with the bars perpendicular to the shortest side, no closer than 19 mm from any edge.
6.2.
6.2.1.
Bar Code Types Used In GS1 System

EAN/UPC Symbols
Trade items that are sold through retail outlets must be bar coded with one of the EAN/UPC Symbols: EAN-13, UPC-A or EAN-8 or UPC-E. These symbols may also be used for trade items not for retail sale. If printing conditions and/or the quality of substrate are not adequate to print the bar code symbol directly on the package, the symbol may be printed on a label affixed to it. The following bar code symbols are shown here in nominal dimensions (magnification factor 100%), including Quiet Zones. The minimum and maximum sizes are given for each type of bar code. See Appendix A.3, Dimensions of Modules and Symbols at Different Magnification Factor for a detailed table of dimensions of EAN/UPC Symbols.
6.2.1.1. EAN-8 Symbol
< 3765 4320 >
Min. size: 21.38 mm x 17 mm Max. size: 53.46 mm x 43 mm Nominal dimensions: 26.73 mm x 21 mm X-dimension at nominal size: 0.330 mm Note: Bar code height has been rounded.
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Note: The X-dimension is the specified width of the narrow element in a bar code symbol. This width varies from one symbology to another.
6.2.1.2. EAN-13 Symbol
5 412345 678908 >
Min. size: Max. size:
29.83 mm x 21 mm 74.58 mm x 52 mm
Nominal dimensions: 37.29 mm x 26 mm X-dimension at nominal size: 0.330 mm Note: Bar code height has been rounded.
6.2.1.3. UPC-A Symbol
12345 67892
29.83 mm x 21 mm 74.58 mm x 52 mm
Nominal dimensions: 37.29 mm x 26 mm X-dimension at nominal size: 0.330 mm Note: Bar code height has been rounded.
6.2.1.4. UPC-E Symbol
0 345678
17.69 mm x 21 mm 44.22 mm x 52 mm
Nominal dimensions: 22.11 mm x 26 mm X-dimension at nominal size: 0.330 mm
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Note: Bar code height has been rounded. Based on their nominal dimensions, the EAN/UPC Symbols can be printed with a magnification factor ranging from 80% to 200%. If the symbol is intended for conveyorised scanning, a minimum magnification factor of 150% should be used. The symbol is designed to be read omni-directionally. Truncation, (reducing the height of the symbol) removes the omni-directional capability. Truncation should be a last resort when there is only space for a truncated bar code. A useful device to help maintain the Quiet Zone in some production processes is to include a less than (<) and/or greater than (>) characters in the human readable field aligned with the edge of the Quiet Zone. Those marks are referred to as the Quiet Zone Indicators.
6.2.2.
ITF-14 Symbol
4.8 mm ( 10.2 mm
122.428 mm
41.4 mm
32 mm
9 3
1 2 3 4 5
152.400 mm
6 7 8 9 0 4
5.72 mm
For companies wishing to print the bar code directly on the carton, particularly on corrugated cardboard, the ITF-14 Symbol is more suitable because the printing requirements are less demanding. Pre-printing or direct print by thermal transfer or ink-jet may be possible. Note: This diagram is not intended for use as a basis for measurement. Dimensions below do not include the bearer bar. Min. size (50%): Max. size (100%): 71.40 mm x 12.70 mm 142.75 mm x 32.00 mm
Nominal dimensions: 142.75 mm x 32.00 mm X-dimension at nominal size: 1.016 mm To ensure efficient reading in any environment, including conveyorised scanning, ITF-14 symbols should be printed close to 100% magnification, with a minimum of 50%.
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6.2.3.
GS1-128 Symbol:
( 01) 93067280205495( 3103) 018750

The GS1-128 is of variable length, depending on the number of characters translated, the types of character encoded and the X-dimension (resulting in overall symbol size) achieved. For a given length of data, the symbol size is variable between limits, to accommodate the ranges in quality achievable by the various printing processes. The symbol is designed to be read bi-directionally by fixed or portable scanners. Based on their nominal dimensions (X-dimension: 1 mm), the GS1-128 Symbols can be printed with a magnification factor ranging from 25% to 100%. To ensure efficient reading in any environment, including conveyorised scanning, a minimum magnification factor of 50% should be used.
6.3.
Considerations on the Use of the Symbologies

The GS1-128 Symbology can be used to encode data beyond the GTIN. If, for any reason, there is a need to print additional information besides the GTIN (serial number, etc), and the trade unit is already marked with a GTIN encoded in an EAN-13, ITF-14, or GS1-128 with Application Identifier (01) Symbol, then it is possible either: To apply a label with the additional information in a GS1-128 Symbol in addition to the previously marked symbol. All the symbols should then be horizontally aligned. To apply a label covering the existing symbols. The GTIN represented in the original symbol must then be printed on the label, with the other chosen attribute data, preferably using a concatenated GS1-128 symbol.
6.4.
Choosing Between Bar Codes

Numbering items and the physical application of the bar code are two separate operations. It is quite usual that different companies carry them out at separate sites. The source the brand name holder usually assigns the number to the item and the manufacturer applies it to the packaging. It is also possible to number an item without applying a bar code. This could occur when it is virtually impossible to apply a bar code, for example on a very small cosmetic, or on a unit of electricity, a load of sand etc. It would then be possible to use the number, for example in electronic data interchange (EDI) messages. Users should take the following considerations into account when choosing between the different symbologies: Space available on the item to be bar coded Type of information to be bar coded; GTIN only or GTIN and additional information (attributes) Operational environment in which the bar code symbol is to be scanned; retail point of sale or general distribution (e.g. in a warehouse racking) Various GS1 identification numbers can be represented in specific bar code symbols:
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Table 6-1 GS1 Identification Numbers Represented in Specific Bar Code Symbols Number Can be represented with symbols EAN-8 ITF-14* GS1-128* *After adding Indicator digit and 5 filling zeros. The GTIN-8 number assigned to small retail items (see Section 4, Small Products) can be used to create GTIN-14 for uniform groupings (indicator digit values 1-8). However, for mixed groupings new GTINs must be assigned, as they are very unlikely to be so small as to justify assigning a new GTIN-8 number. UPC-E* UPC-A ITF-14 GS1-128 *Certain numbers only, (see Section 4, Small Products). EAN-13 ITF-14 GS1-128 ITF-14 GS1-128
GTIN-8
GTIN-12
GTIN-13
GTIN-14
Certain symbols can be used only to mark some types of items, i.e.:
Small retail items EAN-8 UPC-E General retail items UPC-A EAN-13 Non-retail items ITF-14 GS1-128
Note: Data Matrix can be used to encode any GTIN type. However, its use is currently restricted to very small healthcare items. Figure 2-1 will help users to choose between options.
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Figure 6-10 Option Diagram

Yes Yes
Retail Item?
No
Very Small Item?

No
EAN-8 UPC-E
General Distribution?
No Yes
EAN-13 UPC-A
Today the majority of scanning systems can not process additional data at the retail point of sale. Work is underway, within the Global Standards Management Process (GSMP), to provide a global standard solution in this area. Future value added solutions are likely to be based upon RSS (Reduced Space Symbology)
Direct Online Printing on Corrugated?
Yes
Extra Data Required?

No
Yes
ITF-14 and/or GS1-128 *
No
ITF-14
Extra Data Required?

No
Yes
EAN-13 UPC-A ITF-14 and/or GS1-128 ** EAN-13 UPC-A ITF-14 GS1-128 **
Healthcare Item?
Yes
Very Small Item?

No
Yes
Data Matrix
GS1-128 * Quality issue when printing GS1-128 on corrugated ** GS1-128 can encode additional data to the GTIN as well as the GTIN itself
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7.
Application Identifiers (AIs)

GS1-128 is an extremely flexible symbology. It allows representation of data of variable length and makes it possible to encode several pieces of information in one bar code symbol. This is called concatenation. An Application Identifier is the field of two or more characters at the beginning of an Element String. AIs are prefixes that uniquely identify the meaning and the format of the data field following the AI. The data following the AI may comprise alphabetic and/or numeric characters, of any length up to thirty characters. The data fields are either of fixed or variable length, depending on the AI. Attribute data are associated with a trade item or a logistic unit and have no meaning if isolated. Attribute data may be represented in GS1-128 using AIs. There is a range of AIs for attributes such as weight, area or volume. The measure attributes that can be used on trade items are called trade measures (these are always net measures) and attributes for Logistic Units are called logistics measures (these are always gross measures). The following table is extracted from the complete list (see Appendix A.4, GS1 Application Identifiers for the complete list of Application Identifiers).
AI 00 01 02 10 11 15 17 21 310X** 37 401 420 Content SSCC Global Trade Item Number GTIN of trade items contained in a logistic unit Batch number Production date Best Before Date (YYMMDD) Expiration Date (YYMMDD) Serial number Net weight (kilograms) Count of trade items contained in a logistic unit Consignment number Ship to (deliver to) postal code Format* n2+ n18 n2+ n14 n2+ n14 n2+ an..20 n2+ n6 n2+ n6 n2+ n6 n2+ an..20 n4+ n6 n2+ n..8 n3+ an..30 n3+ an..20
* The format symbols denote: - n = numeric characters - an = alpha-numeric characters - .. = variable length field - figures = number of characters ** X indicates the position of a decimal point Figure 7-1 Example of a GS1-128 Representing a GTIN, a Best Before Date, and a Batch Number
( 0 1 ) 0 3 1 2 3 4 5 1 2 3 4 5 6 9 ( 1 5 ) 9 9 1 2 2 4 ( 1 0 ) LV1 1 1
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The use of AIs is governed by certain rules. Some must always be used with others: for example AI (02) must be followed by AI (37). Some AIs must never be used together, for example AI (01) and AI (02). Companies are not free to pick as they wish from the list of AIs and must respect these basic rules which are fully explained in the GS1 General Specifications.
8.
Logistic Units
A Logistic Unit is an item of any composition established for transport and/or storage which needs to be managed through the supply chain. Tracking and tracing of Logistic Units in the supply chain is a major application of the GS1 System. For this purpose, a standard Identification Number known as the SSCC identifies Logistic Units. This number is unique to each specific Logistic Unit, and is, in principle, sufficient for all logistic applications. If trading partners, including carriers and third parties, all read SSCCs, exchange EDI messages between them that give full descriptions of the Logistic Units and have the relevant file on-line when reading the SSCC to access these descriptions, then no other information would be needed besides the SSCC. But all these conditions are still rarely met, so it is recognised that a few attributes in addition to the SSCC are useful in bar coded form on the logistic units. As each Logistic Unit must be assigned its own unique SSCC, the pre-printing of the bar code symbol containing the SSCC on the packaging of the Logistic Unit is not practical. A label must be created, which will be attached to the Logistic Unit, at the time that it is generated. Further, a Logistic Unit may also be a unit of trade and hence be subject to the GS1 specifications for "Trade Items. If this is the case, it is logical to generate a single label containing all the bar-coded information required. GS1 Global Office along with representatives of manufacturers, retailers, transporters and GS1 Member Organisations have developed a voluntary standard for bar code label applications: the GS1 logistics label. The SSCC, and its application on Logistic Units, is the most important element of the GS1 logistics label.
8.1.
The SSCC
SSCC identifies all Logistic Units, whether they are homogeneous or mixed. A company wishing to differentiate its production plants within the SSCC can do so by allocating blocks of SSCCs to each production plant. The SSCC is declared in the despatch advice or the delivery note and in all transportation messages. Application Identifier Extension digit SSCC Check Digit
GS1 Company Prefix
Serial Reference
00
N1
N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12 N13 N14 N15 N16 N17
N18
The Extension digit is used to increase the capacity of the SSCC. It is assigned by the company that allocates the SSCC.
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The GS1 Company Prefix is assigned by a GS1 Member Organisation to the system user which is normally the company assembling the Logistic Unit. It makes the number unique world-wide but does not identify the origin of the unit. The Item Reference is a serial number that the company that has been assigned the GS1 Company Prefix chooses to complete the string of digits N2 to N17. The simplest way to allocate the Item Reference is sequentially that is 000, 001, 002, 003... To be written by each Member Organisation: The local structure of GS1 Company Prefixes and Item References
8.2.
8.2.1.
The Logistics Label

Representation of information
The information presented on logistics labels takes two basic forms; human oriented information to be read by people, which is comprised of text and graphics; machine-readable information designed for automatic data capture. Bar codes, as machine-readable symbols, are a secure and efficient method for conveying structured data. They, as well as human readable text allow general access to basic information at any point in the supply chain. Both methods of presenting information add value to logistics labels, and often co-exist on the same label. The GS1 logistics label is structured in three sections. The top section of the label contains free format information. The middle section contains text information and human readable interpretations of the bar codes. The bottom section includes the bar codes and associated information.
8.2.2.
Label Design
The layout of the logistics label supports the supply chain process by grouping information into three logical sections for the supplier, customer, and carrier. Each label section may be applied at a different point in time as the relevant information becomes known. Additionally, within each section bar codes are segregated from text information to facilitate separate processing by machines and people. The labeller, which is the organisation responsible for the printing and application of the label, determines the content, format, and dimensions of the label. The SSCC is the single mandatory element for all GS1 logistics labels. Other information may be added, when required, in order to comply with the GS1 General Specifications. A section is a logical grouping of information that is generally known at a particular time. There are three label sections each representing a group of information. Generally, the order of the sections, from top to bottom, is: carrier, customer, and supplier. However, this order and top/down alignment may vary depending on the size of the Logistic Unit and business process being served.
8.2.2.1. Supplier Section

Information contained in this section is generally known at the time of packaging by the supplier. The mandatory SSCC is applied here as the unit identifier. Trade item identification (GTIN) would also be applied here when used. Other information that may be of primary interest to the supplier, but might also be useful for customers and carriers, can be applied. This includes product related information such as product variant; dates such as production, packaging, expiration, and best-before dates; as well as lot, batch and serial numbers.
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8.2.2.2. Customer Section

Information contained in this section is generally known at the time of order and order processing by the supplier. Typical information includes the ship-to-location, purchase order number, and customerspecific routing and handling information.
8.2.2.3. Carrier Section

Information contained in this section is generally known at the time of shipment, and is typically related to transport. Typical information includes ship-to postal codes, consignment numbers, and carrierspecific routing and handling information.
8.2.2.4. Label Examples

Figure 8-1 A Basic Label: an SSCC
( 00) 006141411234567890
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Figure 8-2 A Label with Supplier, Customer, and Carrier Sections
FROM GRAND SUPPLIER th 5 STREET BOSTON, MA USA SHIP TO POST 45458 CONSIGNMENT 541234550127501
TO GREAT VALUE 8163 NEW CAJUN DAYTON, OHIO USA B/L 853930
( 420) 45458( 401) 541234550127501

PO: 345-896779-0 Zone: 4 DWCP: 9684584-23 STORE #49
SHIP TO LOC 0614141000531
( 410) 0614141000531 SSCC 0 0614141 123456789
( 00) 006141411234567890
9.
Variable Measure Trade Items

The term Variable Measure Trade Items is used to describe products that are sold, ordered or produced in quantities which can vary continuously, such as fruit and vegetables, meat, cheese, rope, chain, fabric, carpets on a roll, etc.
9.1.
Retail Variable Measure Trade Items

In this scenario the weight, quantity or price must be included in the bar code to be read at the check out. In the EAN/UPC Symbols, there is no room left for a GTIN, so a shorter number must be used to identify the product. The measure or price may be of 4 or 5 digits, depending on the currency, and may include a special Verifier Digit for price. The exact structure is determined by the GS1 Member Organisation for their respective territories. The short number may be allocated by: The retailer (from the capacity made available by MO)
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The supplier from a range of numbers allocated to him by the GS1 Member Organisation The GS1 Member Organisation in case a national generic number has been defined for a particular type of item. The GS1 Prefix is selected by the Member Organisation from the range 02 and 20 to 29. To be written by each Member Organisation: The solutions for bar coding variable measure products are national solutions. They are not to be used when trading across borders. Companies which export must adopt the solutions in force in the country of destination: details are available at the respective GS1 Member Organisation.
9.2.
Non Retail Variable Measure Trade Items

The GTIN-14 Identification Number with the indicator "9" is used to identify a non-retail Variable Measure Trade Item. To complete the identification of a trade item the presence of the specific measure of the item is mandatory. When several non retail Variable Measure Trade Items exist for a specific retail Variable Measure Trade Item, each one must be allocated its own GTIN starting with a 9. The following is an example of a complete identification number in bar coded form, configured for measuring an item in kilograms. For other measures, see the full list of AIs in Appendix A.4, GS1 Application Identifiers or consult the GS1 General Specifications. AI 0 1 GTIN 9 N1 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12 C AI 3 1 0 X Measure M1 M2 M3 M4 M5 M6
There are two ways to translate this information into a bar code. Preferably with a GS1-128, to encode the identification number and the measure in a single symbol, using Application Identifier (01) for the GTIN, and one of the AIs from (3100) to (3169), or AI (8001) for the measure. Or it is possible to have the GTIN encoded in an ITF-14 Symbol and the measure in a GS1128 Symbol. The measure is always expressed in six digits in the unit of measure defined by the AI. The position of the decimal point is indicated by the last digit (*x) of the AI. If it has the value 0 it means that there is no decimal point, if it has the value 2 it means that there are two decimal digits. For example, 005250 preceded by the AI (3103) signifies 5,25 kilograms.
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10.
Special Cases
Two options are available when books, printed music or serial publications are being numbered. The GTIN-13 or GTIN-12 data structure can be used in a similar way to any other trade item. Please contact a local Member Organisation. The alternative is to use ISBN, ISMN or ISSN numbers (without its Check Digit) which are embedded in a GTIN.
ISBN Books 9 7 8 C
10.1. Books, Serial Publications and Printed Sheet Music
ISSN Serial publications 9 7 7 C
The prefix 978 has been allocated to encode the ISBN. Prefix 979 has been allocated to ISBN and is being used for printed sheet music (ISMN). The prefix 977 has been allocated to encode the ISSN. Other solutions have been defined in some countries using a specific GS1 Company Prefix. Additional information to the title can be printed in a number with two or five digits, to be shown in an additional symbol, called an add-on and located to the right of the EAN/UPC symbol and parallel to it. It is the responsibility of the publisher to issue add-on barcodes and they are used for book-returns purposes.
10.2. Company Internal Numbering in a Store or Warehouse

Companies may need to number items for their own internal use. They may do this using GTIN-13 Numbers starting with one of the prefixes reserved for this purpose by the MO in the range: 02, 04, or 20 to 29. These numbers cannot be used outside the company that has allocated them and can only be used for scanning internally. They cannot be used for EDI purposes, as they are not allocated uniquely to the supplier. The use of internal numbering may cause confusion in the event of mergers between companies.
10.3. The Numbering of Coupons

Coupon identification is organised at national level and therefore, the numbers cannot be used worldwide. The structure is defined by each MO. Coupons are numbered using a GTIN-13 Number starting with prefix 99. For U.P.C. Symbols, GS1 US has allocated prefix 05 and 99 to coupons. Prefixes 981 and 982 have been released for coupons issued in a currency common to several countries (e.g. euro). To be written by each Member Organisation: There are different national solutions for identifying coupons, in a similar way that there are national solutions for variable measure items
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10.4. Other Special Solutions

To be written by each Member Organisation: There are local solutions for other areas of applications i.e. for identification of payment slips, pharmaceutical products etc. Each Member Organisation that has developed such local solutions should present them at the necessary level of detail.
11.
Global Location Numbers

The Global Location Number (GLN) makes possible the unique and unambiguous identification of physical locations or legal entities. A trade relationship may involve several companies; suppliers, customers and possibly a logistic service provider. In each company, several departments may be involved. Trade partners need to identify in their own files, all the locations that are relevant to this relationship. The GLN uses the same data structure as the GTIN-13 data structure and the numbers are nonsignificant. The same GTIN-13 Identification Number can be allocated to a product and to a location. No confusion arises because the applications are totally separate. Each company or organisation holding a GS1 Company Prefix may assign Global Location Numbers to its own locations. Each different location that needs to be distinguished must be allocated a separate number. Important: In some countries GTIN and GLN numbers are allocated from separate pools different numbers for each of them. Therefore, in order to avoid confusion and number clash, it is strongly advised to always contact your GS1 Member Organisation before assigning GLNs. It is the responsibility of a company using GLNs to keep business partners informed of all the numbers it has issued, together with the corresponding details. The GLN can be used in many ways. For example in EDI communications the GLN can be used to identify all relevant physical locations and in bar coded form with Application Identifiers that have been defined for GLNs: "Deliver to" location AI (410) "Invoice to" location AI (411) "Purchased from" location AI (412) "Ship for - Deliver for - Forward to" location AI (413) Physical Location AI (414) Location Number of the Invoicing Party AI (415) Refer to www.gs1.org/glnrules for more details on GLN.
12.
Electronic Data Interchange

Every day, businesses generate and process a staggering volume of paper documents. These documents, ranging from purchase orders and invoices, to product catalogues and sales reports, provide the vital information that will precede, accompany or follow the physical goods in a commercial transaction.
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Electronic Data Interchange (EDI) provides trading partners with an efficient business tool for the automatic transmission of commercial data from one computer application directly to another. In EDI, all paper business documents sent previously between companies have been replaced by messages, suitable for exchange by electronic means, between computer applications. Note: EDI is the transfer of structured data by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention. This interchange concerns trade transactions, and the associated commercial, logistics and financial implications. For every organisation the successful implementation of EDI will be a multi-disciplinary project requiring a high level of commitment not only from senior management but also from a broad spectrum of functional managers responsible for different areas of activity. Corporate policies and procedures will need to be examined. Current functional procedures may require revision and new business relationships could be established and managed. At the centre of the system lies the better use and sharing of information, both internally and between trading partners, so that inter-dependency can be more informed and reliable. There are two major areas in which the EDI is standardised in GS1 System: EANCOM and XML. EANCOM is a detailed implementation guideline of the UN/EDIFACT standard messages. It comprises business messages with clear definitions and explanations on how to use all the data fields. This allows trading partners to exchange commercial documents in a simple, accurate and cost effective manner. There are various types of messages to answer all business requirements at the various stages of a trade relationship: Master data messages describe relevant parties and products. Commercial transactions start with the ordering and end with the debit multiple advice or a credit multiple advice messages, following the logical sequence of the trading cycle. Report and planning messages are used for informing the trading partner on the trading activity or to plan ahead for future requirements, thus allowing a streamlining of the supply chain. General messages which are used to send general application support information to one or multiple addresses. EANCOM is not only a set of standard messages; it is also based on the use of GS1 international numbers rather than numbers agreed bilaterally between two trading partners. The use of GS1 Identification keys will naturally simplify implementations with future trading partners. The GTIN described in this manual for identifying trade items is the only international and multi-sector numbering system that provides a unique and unambiguous identification number for every item and its variants, regardless of its place of origin and destination. Its use in EANCOM messages is particularly important in open environments. Companies do not have to maintain complex crossreferences of trading partner's internal numbers. The GLN (Global Location Number) provides the most efficient means of communicating location or company identification. As well as being used in the EANCOM messages they can also be used by networks to route EDI messages to the designated mailbox, workstation or application. EANCOM messages have been designed to take full advantage of the associated standards, such as product and location numbering and bar coding, in order to provide maximum efficiency and benefits to the user. The use of such messaging and standards is increasing throughout the world. The EDI performed by means of EANCOM messages requires using specially dedicated connections Value Added Network. VANs are very reliable, yet quite expensive and require special service. That is the reason why mainly it was the biggest companies that were able to invest in such infrastructure. The SMEs continued using the old paper-based and error prone exchange of business documents.
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Along with the rapid development of the Internet, enterprises expressed the need to use this medium also for exchange of business documents. A response to that need was XML eXtensible Mark-up Language, used for automatic exchange of business information between applications, over the Internet. There have been several standard XML messages developed by GS1. All of them use the standard reference numbers, like GTIN or GLN. For further information about those new standards, interested users should contact their local GS1 Member Organisation.
13.
Frequently Asked Questions

Detailed information can be found either at the website: www.gs1.org, or by contacting the local GS1 Member Organisation. The contact list can be accessed at www.gs1.org/contact. The frequently asked questions are posted at www.gs1.org/helpdesk. Detailed information about GTIN allocation rules are posted at www.gs1.org/gtinrules. Detailed information about GLN allocation rules are posted at www.gs1.org/glnrules. Contact information about member companies holding a given GS1 Identification Key (GTIN, GLN, etc.) can be found at www.gepir.org.
14.
Glossary
Term Add-On Symbol alphanumeric (an) Application Identifier Attribute Bearer Bars brand owner Definition A bar code symbol used to encode information supplementary to that in the main bar code symbol. Describes a character set that contains alphabetic characters (letters), numeric digits (numbers), and other characters, such as punctuation marks. The field of two or more characters at the beginning of an Element String that uniquely defines its format and meaning. A piece of information reflecting a characteristic related to an identification number (e.g., Global Trade Item Number (GTIN), SSCC). Bars surrounding a bar code symbol to prevent misreads or to improve print quality of the bar code symbol. The party that is responsible for allocating GS1 System numbering and bar code symbols on a given trade item. The administrator of a GS1 Company Prefix. The party that provides freight transportation services or a physical or electronic mechanism that carries data. A digit calculated from the other digits of an Element String, used to check that the data has been correctly composed. (See GS1 Check Digit Calculation.) A component of the GS1 Company Prefix. GS1 Member Organisations assign GS1 Company Prefixes to entities that administer the allocation of GS1 System identification numbers. These entities may be, for example, commercial companies, not for profit organisations, governmental agencies, and business units within organisations. Criteria to qualify for the assignment of a GS1 Company Prefix are set by the GS1 Member Organisations.
carrier Check Digit
Company Number
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Term concatenation coupon customer data carrier data character data field data titles direct print EAN/UPC Symbology
Definition The representation of several Element Strings in one bar code symbol. A voucher that can be redeemed at the Point-of-Sale for a cash value or free item. The party that receives, buys, or consumes an item or service. A means to represent data in a machine readable form; used to enable automatic reading of the Element Strings. A letter, digit, or other symbol represented in the data field(s) of an element string. The smallest part of the data part of an Element String that needs to be distinguished. A standard abbreviated description of a data field; used to denote the Human Readable Interpretation of encoded data. A process in which the printing apparatus prints the symbol by making physical contact with a substrate (e.g., flexography, ink jet, dot peening). A family of bar code symbols including EAN-8, EAN-13, UPC-A, and UPC-E Bar Code Symbols. Although UPC-E Bar Code Symbols do not have a separate Symbology Identifier, they act like a separate symbology through the scanning application software. See also EAN-8 Bar Code Symbol, EAN13 Bar Code Symbol, UPC-A Bar Code Symbol, and UPC-E Bar Code Symbol. A bar code symbol of the EAN/UPC Symbology that encodes GTIN-13, Coupon-13, RCN-13, and VMN-13. A bar code symbol of the EAN/UPC Symbology that encodes GTIN-8. The GS1 standard for Electronic Data Interchange (EDI) is a detailed implementation guideline of the UN/EDIFACT standard messages using the GS1 Identification Keys. The conduct of business communications and management through electronic methods, such as Electronic Data Interchange (EDI) and automated data collection systems. A composition of Element Strings from scanned data and transaction information assembled for data validation and unambiguous processing in a user application. A piece of data defined in structure and meaning, comprising an identification part (prefix or Application Identifier) and a data part, represented in a GS1 System endorsed data carrier. A digit, allocated by the user, used to increase the capacity of the Serial Reference within the SSCC (Serial Shipping Container Code). Term used to describe a data field in an Element String with an established number of characters. An item always produced in the same pre-defined version (e.g., type, size, weight, contents, design) that may be sold at any point in the supply chain. A symbology element used to form the double start pattern of a GS1-128 Bar Code Symbol. It is also used to separate certain concatenated Element Strings, dependent on their positioning in the bar code symbol. Scanning environments that include bar coded trade items packaged for transport, logistic units, assets and location tags. The GS1 Identification Key for an individual asset.
EAN-13 Bar Code Symbol EAN-8 Bar Code Symbol EANCOM
Electronic Commerce
Electronic Message
Element String
Extension digit fixed length Fixed Measure Trade Item Function Code 1 (FNC1)
General Distribution Scanning Global Individual Asset Identifier
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Term Global Location Number Global Returnable Asset Identifier Global Service Relation Number Global Trade Item Number GS1 Check Digit Calculation GS1 Company Prefix
Definition The GS1 Identification Key to identify physical or legal entities. The GS1 Identification Key for returnable assets. The GS1 Identification Key used to identify the relationship between a service provider and service recipient. The GS1 Identification Key for trade items. A GS1 System algorithm for the calculation of a Check Digit to verify accuracy of data. Part of the GS1 System identification number consisting of a GS1 Prefix and a Company Number, both of which are allocated by GS1 Member Organisations. Defines the GS1 System data and application standards related to the marking and automatic identification of trade items, locations, logistic units, assets, and more using bar code, RFID, and GS1 Identification Keys. Based in Brussels, Belgium, and Princeton, USA, is an organisation of GS1 Member Organisations that manages the GS1 System. A numeric or alphanumeric field managed by GS1 to ensure the global, unambiguous uniqueness of the identifier in the open demand or supply chain. A globally managed system of numbering used by all GS1 Business Units to identify trade items, logistic units, locations, legal entities, assets, service relationships, and more. The Keys are built by combining GS1 member company identifiers (GS1 Company Prefix) with standards based rules for allocating reference numbers. A member of GS1 that is responsible for administering the GS1 System in its country (or assigned area). This task includes, but is not restricted to, ensuring user companies make correct use of the GS1 System, have access to education, training, promotion and implementation support and have access to play an active role in GSMP. A number with two or more digits, administered by the GS1global Office that is allocated to GS1 Member Organisations or for Restricted Circulation Numbers. The specifications, standards, and guidelines administered by GS1. A component of GS1 eCom. It represents the GS1 standard for Extensible Markup Language schemas providing users with a global business messaging language of e-business to conduct efficient Internet-based electronic commerce. A subset of the Code 128 that is utilised exclusively for GS1 System data structures. A one-, two-, or three-digit index number, administered by GS1, denoting the area of distribution of trade items identified by a GTIN-8 or a number used in internal application (see RCN-8). The format in which Global Trade Item Numbers (GTINs) must be represented in a 14-digit reference field (key) in computer files to ensure uniqueness of the identification numbers. The 8-digit GS1 Identification Key composed of a GS1-8 Prefix, Item Reference, and Check Digit used to identify trade items. The 12-digit GS1 Identification Key composed of a U.P.C. Company Prefix, Item Reference, and Check Digit used to identify trade items.
GS1 General Specifications
GS1 Global Office GS1 Identification Key
GS1 Identification Keys
GS1 Member Organisation
GS1 Prefix
GS1 System GS1 XML
GS1-128 Bar Code Symbol GS1-8 Prefix
GTIN Format
GTIN-8 GTIN-12
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Term GTIN-13 GTIN-14
Definition The 13-digit GS1 Identification Key composed of a GS1 Company Prefix, Item Reference, and Check Digit used to identify trade items. The 14-digit GS1 Identification Key composed of an Indicator digit (1-9), GS1 Company Prefix, Item Reference, and Check Digit used to identify trade items. Characters that can be read by persons, such as letters and numbers, as opposed to symbol characters within bar code symbols, which are read by machines. A digit from 1 to 9 in the leftmost position of the GTIN-14. The part of the data structure allocated by the user to identify a trade item for a given GS1 Company Prefix. The Interleaved 2 of 5 Symbology. An ITF Symbol used by the GS1 System to carry GTINs. A particular use of the UPC-E Bar Code Symbol for restricted distribution. A number within a Global Location Number (GLN) assigned by various parties to identify a different entity. Measures indicating the outside dimensions, total weight, or volume inclusive of packing material of a logistic unit. Also known as grossmeasures. An item of any composition established for transport and/or storage that needs to be managed through the supply chain. It is identified with SSCC. Different sizes of bar code symbols based on a nominal size and a fixed aspect ratio; stated as a percent or decimal equivalent of a nominal size. Modulo 10 creates a Check Digit according to the Modulo 10 algorithm specified in the GS1 General Specifications. Refers to the retail type checkout where bar code symbols are normally scanned. A clear space containing no machine-readable marks, which precedes the Start Character of a bar code symbol and follows the Stop Character. Formerly referred to as Clear Area or Light Margin. A greater than (>) or less than (<) character, printed in the human readable field of the bar code symbol, with the tip aligned with the outer edge of the Quiet Zone. Signifies a GS1 identification number used for special applications in restricted environments, defined by the local GS1 Member Organisation (e.g., restricted within a country, company, industry). They are allocated by GS1 for either internal use by companies or to GS1 Member Organisations for assignment based on business needs in their country (e.g., variable measure product identification, couponing). An electronic device to read bar code symbols and convert them into electrical signals understandable by a computer device. The GS1 Identification Key for logistic units. The material on which a bar code symbol is printed. The party that produces, provides, or furnishes an item or service.
Human Readable Interpretation
Indicator Item Reference ITF Symbology ITF-14 Bar Code Symbol Local Assigned Code Location Reference logistic measures
logistic unit magnification Modulo 10 Point-of-Sale (POS) Quiet Zone
Quiet Zone Indicator
Restricted Circulation Numbers
scanner Serial Shipping Container Code substrate supplier
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Term symbol
Definition The combination of symbol characters and features required by a particular symbology, including Quiet Zone, Start and Stop Characters, data characters, and other auxiliary patterns, which together form a complete scannable entity; an instance of a symbology and a data structure. A group of bars and spaces in a symbol that is decoded as a single unit. It may represent an individual digit, letter, punctuation mark, control indicator, or multiple data characters. An ISO 15416 parameter that measures the difference between the largest and smallest reflectance values in a Scan Reflectance Profile (SRP). A defined method of representing numeric or alphabetic characters in a bar code; a type of bar code. Any item (product or service) upon which there is a need to retrieve predefined information and that may be priced, or ordered, or invoiced at any point in any supply chain. Net measures of Variable Measure Trade Items as used for invoicing (billing) the trade item. Information (not part of the GS1 System) denoting the particular operation in connection with which the scanned data has been captured. Printing a symbol shorter than the symbology specifications minimum height recommendations. Truncation can make the symbol difficult for an operator to scan. A special representation of a GS1 Company Prefix constructed from a U.P.C. Prefix and a Company Number. The U.P.C. Company Prefix is only used to create GTIN-12, Coupon-12, RCN-12, and VMC-12, which are encoded in a U.P.C. Bar Code Symbol. A special representation of the GS1 Prefixes 00 09 with the leading zero removed. Signifies that such system data may be applied on goods to be processed anywhere in the world without restraint as to such things as country, company, and industry. A bar code symbol of the EAN/UPC Symbology that encodes GTIN-12, Coupon-12, RCN-12, and VMN-12. A bar code symbol of the EAN/UPC Symbology representing a GTIN-12 in six explicitly encoded digits using zero-suppression techniques. An item always produced in the same pre-defined version (e.g., type, design, packaging) that may be sold at any point in the supply chain, which either may vary in weight/size by its nature or which may be traded without a pre-defined weight/size/length. The ratio between the wide elements and the narrow elements in a bar code symbology, such as ITF-14, which has two different element widths. The specified width of the narrow element in a bar code symbol.
symbol character
Symbol Contrast symbology trade item
trade measures transaction type truncation
U.P.C. Company Prefix
U.P.C. Prefix unrestricted distribution
UPC-A Bar Code Symbol UPC-E Bar Code Symbol variable measure trade item
wide-to-narrow ratio X-dimension
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A.
A.1
Appendices
Standard Check Digit Calculations of GS1 Data Structures
Digit positions
GTIN-8 GTIN-12 GTIN-13 GTIN-14 SSCC N1 N2 N3 N4 N1 N5 N1 N2 N6 N1 N2 N3 N7 N2 N3 N4 N8 N3 N4 N5 N9 N4 N5 N6 N10 N1 N5 N6 N7 N11 N2 N6 N7 N8 N12 N3 N7 N8 N9 N13 N4 N8 N9 N10 N14 N5 N9 N10 N11 N15 N6 N10 N11 N12 N16 N7 N11 N12 N13 N17 N8 N12 N13 N14 N18
Multiply value of each position by x3 x1 x3 x1 x3 x1 x3 x1 x3 x1 x3 x1 x3 x1 x3 x1 x3 Accumulated results = Sum Subtract sum from nearest multiple of ten = Check Digit
Example of a Check Digit calculation for the 18 digit field

Positions Number without Check Digit Step 1: Multiply by Step 2: Add up results to sum N1 3 x 3 = 9 N2 7 x 1 = 7 N3 6 x 3 = 18 N4 1 x 1 = 1 N5 0 x 3 = 0 N6 4 x 1 = 4 N7 2 x 3 = 6 N8 5 x 1 = 5 N9 0 x 3 = 0 N10 0 x 1 = 0 N11 2 x 3 = 6 N12 1 x 1 = 1 N13 2 x 3 = 6 N14 3 x 1 = 3 N15 4 x 3 = 12 N16 5 x 1 = 5 N17 6 x 3 = 18 = N18
101
Step 3: Subtract sum from nearest multiple of ten (110) = Check Digit (9) Number with Check Digit 3 7 6 1 0 4 2 5 0 0 2 1 2 3 4 5 6
9
Note: An online Check Digit calculator is available on http://www.gs1.org
A.2
GTIN-12 Identification Numbers in a UPC-E Symbol

GTIN-12 item Identification Numbers beginning with the U.P.C. Prefix 0 may be represented in a small bar code symbol named UPC-E. The GTIN-12 Item Number is condensed into a bar code symbol consisting of six symbol character positions. For application processing, the item number must be transformed into its full length by the bar code reader software or by the application software. There is no UPC-E six-digit trade item number.
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Table A-1 UPC-E Option for the Identification of Trade Items (GTIN)
GTIN-12 Identification number of trade Company prefix N1 (0) (0) 0 0 N2 0 9 N3 0 9 N4 0 9 N5 0 9 N6 1 9 Item reference number N7 0 0 N8 0 0 N9 0 0 N10 N11 0 0 5 9 Check digit N12 4 2 Represented in UPC-E symbol positions 1 0 9 2 0 9 3 0 9 4 0 9 5 1 9 6 '5' '9'
= 5 UPC-E Applications (0) (0) 0 0 0 9 0 9 0 9 1 9 0 0 0 0 0 0 0 0 0 0 0 9 7 1 0 9 0 9 0 9 1 9 0 9 '4' '4'
= 1000 UPC-E Applications
Note: Company prefixes showing 000000 and 001000 to 007999 in positions N1 to N6 are not available in this UPC-E option (see Table A-2 ).
Table A-2 UPC-E Option for the Identification of Trade Items for Company Internal Distribution
GTIN-12 Identification number of trade N1 (0) (0) 0 0 N2 0 0 N3 1 7 N4 0 9 N5 0 9 N6 1 9 N7 0 0 N8 0 0 N9 0 0 N10 N11 0 0 5 9 Check digit N12 2 7 Represented in UPC-E symbol positions 1 0 0 2 1 7 3 0 9 4 0 9 5 0 9 6 '5' '9'
LAC Version = 35000 UPC-E (0) (0) 0 0 0 0 1 5 0 0 0 0 0 0 0 0 0 0 1 9 0 9 0 9 4 2 0 0 1 5 1 9 0 9 0 9 '0' '0'
RZSC Version = 4500 UPC-E (0) (0) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 0 9 0 9 0 7 0 0 0 0 0 9 0 9 0 9 '0' '0'
Velocity version = 1000 UPC-E
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Table A-2 shows the construction principle of UPC-E for trade item numbering for restricted distribution (company internal). These Identification Numbers are not unambiguous when leaving the applying company. Remarks concerning Table A 1 and Table A-2 Each number position must only contain the digits shown in the upper and lower lines of each section and those in-between. On decoding, the extension to full length is determined by the value of the number in single quotes in the column Represented in UPC-E symbol positions. The Check Digit, calculated as described in Appendix A.1, Standard Check Digit Calculations of GS1 Data Structures, applies to the entire Identification Number. In the UPC-E bar code symbol it is implicitly represented by the parity combination of the six symbol characters which are actually encoded.
A.3
Dimensions of Modules and Symbols at Different Magnification Factor

Magnification Factor Module Width (ideal) [mm] EAN-13/UPC-A Dimensions [mm] EAN-8 Dimensions [mm]
Width 0.80 0.85 0.90 0.95 1.00 1.05 1.10 1.15 1.20 1.25 1.30 1.35 1.40 1.45 1.50 1.55 1.60 1.65 1.70 1.75 1.80 0.264 0.281 0.297 0.313 0.330 0.346 0.363 0.379 0.396 0.412 0.429 0.445 0.462 0.478 0.495 0.511 0.528 0.544 0.561 0.577 0.594 29.83 31.70 33.56 35.43 37.29 39.15 41.02 42.88 44.75 46.61 48.48 50.34 52.21 54.07 55.94 57.80 59.66 61.53 63.39 65.26 67.12
Height 20.73 22.02 23.32 24.61 25.91 27.21 28.50 29.80 31.09 32.39 33.68 34.98 36.27 37.57 38.87 40.16 41.46 42.75 44.05 45.34 46.64
Width 21.38 22.72 24.06 25.39 26.73 28.07 29.40 30.74 32.08 33.41 34.75 36.09 37.42 38.76 40.10 41.43 42.77 44.10 45.44 46.78 48.11
Height 17.05 18.11 19.18 20.24 21.31 22.38 23.44 24.51 25.57 26.64 27.70 28.77 29.83 30.90 31.97 33.03 34.10 35.16 36.23 37.29 38.36
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Magnification Factor
Module Width (ideal) [mm] 0.610 0.627 0.643 0.660
EAN-13/UPC-A Dimensions [mm]
EAN-8 Dimensions [mm]
1.85 1.90 1.95 2.00
68.99 70.85 72.72 74.58
47.93 49.23 50.52 51.82
49.45 50.79 52.12 53.46
39.42 40.49 41.55 42.62
A.4
GS1 Application Identifiers
A.1.1. All Application Identifiers

AI 00 01 02 10 11* 12* 13* 15* 17* 20 21 22 240 241 250** 251** 253 254 30 310n369n 337n 37 390(n) 391(n) Full Title Serial Shipping Container Code Global Trade Item Number GTIN of trade items contained in a logistic unit Batch or Lot Number Production Date (YYMMDD) Due Date (YYMMDD) Packaging Date (YYMMDD) Best Before Date (YYMMDD) Expiration Date (YYMMDD) Product Variant Serial Number Secondary Data For Specific Health Industry Products Additional Product Identification Assigned by The Manufacturer Customer Part Number Secondary Serial Number Reference to Source Entity Global Document Type Identifier GLN Extension component Variable Count (Trade And Logistic Measurements) See next Tables Kilograms per square metre Count of Trade Items Contained in a Logistic Unit Amount Payable single monetary area Amount Payable with ISO currency code Format n2+n18 n2+n14 n2+n14 n2+an..20 n2+n6 n2+n6 n2+n6 n2+n6 n2+n6 n2+n2 n2+an..20 n2+an..29 n3+an..30 n3+an..30 n3+an..30 n3+an..30 n3+n13+n..17 n3+an..20 n2+n..8 n4+n6 n4+n6 n2+n..8 n4+n..15 n4+n3+n..15 Data Title SSCC GTIN CONTENT BATCH/LOT PROD DATE DUE DATE PACK DATE BEST BEFORE or SELL BY USE BY or EXPIRY VARIANT SERIAL QTY / DATE / BATCH ADDITIONAL ID CUST. PART No. SECONDARY SERIAL REF TO SOURCE DOC. ID GLN EXTENSION VAR. COUNT See next Tables KG PER m COUNT AMOUNT AMOUNT
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AI 392(n) 393(n) 400 401 402 403 410 411 412 413 414 415 420 421 422 423 424 425 426 7001 7002 703(s)*** 8001 8002 8003 8004 8005 8006 8007 8008
Full Title Amount Payable for a Variable Measure Trade Item single monetary unit Amount Payable for a Variable Measure Trade Item with ISO currency code Customer's Purchase Order Number Consignment Number Shipment Identification Number Routing Code "Ship To - Deliver To" Global Location Number "Bill To - Invoice To" Global Location Number "Purchased From" Global Location Number "Ship For - Deliver For - Forward To" Global Location Number Identification of a Physical Location, Global Location Number Global Location Number of the Invoicing Party "Ship To - Deliver To" Postal Code Within a Single Postal Authority "Ship To - Deliver To" Postal Code With 3 Digit ISO Country Code Country of Origin of a Trade Item Country of Initial Processing Country of Processing Country of Disassembly Country covering full Process Chain NATO Stock Number UN/ECE Meat Carcasses and Cuts Classification Approval number of processor with ISO country code Roll Products - Width, Length, Core Diameter, Direction And Splices Electronic Serial Identifier For Cellular Mobile Telephones Global Returnable Asset Identifier Global Individual Asset Identifier Price Per Unit of Measure Identification of the Component of a Trade Item International Bank Account Number Date and Time of Production
Format n4+n..15 n4+n3+n..15 n3+an..30 n3+an..30 n3+n17 n3+an..30 n3+n13 n3+n13 n3+n13 n3+n13 n3+n13 n3+n13 n3+an..20 n3+n3+an..9 n3+n3 n3+n3+n..12 n3+n3 n3+n3 n3+n3 n4+n13 n4+an..30 n4+n3+an..27 n4+n14 n4+an..20 n4+n14+an..16 n4+an..30 n4+n6 n4+n14+n2+n2 n4+an..30 n4+n8+n..4
Data Title PRICE PRICE ORDER NUMBER CONSIGNMENT SHIPMENT NO. ROUTE SHIP TO LOC BILL TO PURCHASE FROM SHIP FOR LOC LOC No PAY TO SHIP TO POST SHIP TO POST ORIGIN COUNTRY - INITIAL PROCESS. COUNTRY - PROCESS. COUNTRY DISASSEMBLY COUNTRY FULL PROCESS NSN MEAT CUT PROCESSOR # s DIMENSIONS CMT No GRAI GIAI PRICE PER UNIT GCTIN IBAN PROD TIME
3
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AI 8018 8020 8100 8101 8102 902 91-99**
Full Title Global Service Relation Number Payment Slip Reference Number GS1-128 Coupon Extended Code - NSC + Offer Code GS1-128 Coupon Extended Code - NSC + Offer Code + End Of Offer Code GS1-128 Coupon Extended Code - NSC Information Mutually Agreed Between Trading Partners (Including FACT DIs) Company Internal Information
Format n4+n18 n4+an..25 n4+n1+n5 n4+n1+n5+n4 n4+n1+n1 n2+an..30 n2+an..30
Data Title GSRN REF No INTERNAL INTERNAL
Table Notes:
When only year and month are required, DD must be filled with "00" The actual Data Title may be specified by the issuer of the data
**
*** The fourth digit of this AI, "s," indicates the sequence of the processors in the supply chain
(n) Indicates the decimal point position.
A.1.2. Metric trade measures

AI 310 (n) 311 (n) 312 (n) 313 (n) 314 (n) 315 (n) 316 (n) Full title Data Format n6 Net weight Length or 1st dimension, trade Width, diameter or 2nd dimension, trade Depth, thickness, height or 3rd dimension, trade Area, trade Net volume Net volume Unit of Measure Kilograms Metres Metres Metres Square Metres Litres Cubic Metres Data title NET WEIGHT (kg) LENGTH (m) WIDTH (m) HEIGHT (m) AREA (m2) NET VOLUME (l) NET VOLUME (m3)
Table Notes: (n) Indicates the decimal point position.
A.1.3. Non-Metric Trade Measures

AI 320 (n) 321 (n) 322 (n) 323 (n) 324 (n) 325 (n) Full title Data Format n6 Net weight Length or 1st dimension, trade Length or 1st dimension, trade Length or 1st dimension, trade Width, diameter or 2nd dimension, trade Width, diameter or 2nd dimension, trade Unit of Measure Pounds Inches Feet Yards Inches Feet Data title NET WEIGHT (lb) LENGTH (i) LENGTH (f) LENGTH (y) WIDTH (i) WIDTH (f)
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AI 326 (n) 327 (n) 328 (n) 329 (n) 350 (n) 351 (n) 352 (n) 356 (n) 357 (n) 360 (n) 361 (n) 364 (n) 365 (n) 366 (n)
Full title Data Format n6 Width, diameter or 2nd dimension, trade Depth, thickness, height or 3rd dimension, trade Depth, thickness, height or 3rd dimension, trade Depth, thickness, height or 3rd dimension, trade Area, trade Area, trade Area, trade Net weight Net volume Net volume Net volume Net volume Net volume Net volume
Unit of Measure Yards Inches Feet Yards Square Inches Square Feet Square Yards Troy Ounces Ounces (U.S.) Quarts Gallons (U.S.) Cubic Inches Cubic Feet Cubic Yards
Data title WIDTH (y) HEIGHT (i) HEIGHT (f) HEIGHT (y) AREA (i2) AREA (f ) AREA (y ) NET WEIGHT (t) NET VOLUME (oz) NET VOLUME (q) NET VOLUME (g) NET VOLUME (i3) NET VOLUME (f3) NET VOLUME (y )
3 2 2
A.1.4. Metric Logistic Measures

AI 330 (n) 331 (n) 332 (n) 333 (n) 334 (n) 335 (n) 336 (n) Full title Data Format n6 Gross weight Length or 1st dimension, logistics Width, diameter or 2nd dimension, logistics Depth, thickness, height or 3rd dimension, logistics Area, logistics Gross volume Gross volume Unit of Measure Kilograms Metres Metres Metres Square Metres Litres Cubic Metres Data title GROSS WEIGHT (kg) LENGTH (m), log WIDTH (m), log HEIGHT (m), log AREA (m ), log VOLUME (l), log VOLUME (m3), log
2
A.1.5. Non-Metric Logistic Measures

AI 340 (n) 341 (n) 342 (n) Full title Data Format n6 Gross weight Length or 1st dimension, logistics Length or 1st dimension, logistics Unit of Measure Pounds Inches Feet Data title GROSS WEIGHT (lb) LENGTH (i), log LENGTH (f), log
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AI 343 (n) 344 (n) 345 (n) 346 (n) 347 (n) 348 (n) 349 (n) 353 (n) 354 (n) 355 (n) 362 (n) 363 (n) 367 (n) 368 (n) 369 (n)
Full title Data Format n6 Length or 1st dimension, logistics Width, diameter or 2nd dimension, logistics Width, diameter or 2nd dimension, logistics Width, diameter or 2nd dimension, logistics Depth, thickness, height or 3rd dimension, logistics Depth, thickness, height or 3rd dimension, logistics Depth, thickness, height or 3rd dimension, logistics Area, logistics Area, logistics Area, logistics Gross volume Gross volume Gross volume Gross volume Gross volume
Unit of Measure Yards Inches Feet Yards Inches Feet Yards Square Inches Square Feet Square Yards Quarts Gallons (U.S.) Cubic Inches Cubic Feet Cubic Yards
Data title LENGTH (y), log WIDTH (i), log WIDTH (f), log WIDTH (y), log HEIGHT (i), log HEIGHT (f), log HEIGHT (y), log AREA (i2), log AREA (f2), log AREA (y2), log VOLUME (q), log VOLUME (g), log VOLUME (i3), log VOLUME (f ), log VOLUME (y3), log
3
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Table of Contents
1. Executive Summary ............................................................................................................. 1 1.1 Introduction .............................................................................................................. 1 1.2 Summary of Key Findings ........................................................................................ 1 1.3 Asset Management Recommendations ................................................................... 2 1.4 Next Steps ............................................................................................................... 3 Asset Management Recommendations ................................................................................ 4 2.1 Future State ............................................................................................................. 4 2.2 Core Recommendation - Comprehensive Asset Management System .................. 10 2.3 Complementary Recommendations ....................................................................... 10 Asset Management Current State ...................................................................................... 18 3.1 High-Level Overview of Asset Management Current State .................................... 18 3.2 Key Findings .......................................................................................................... 23 Technology That Supports Comprehensive Asset Management ........................................ 30 4.1 Introduction ............................................................................................................ 30 4.2 Systems that Support Asset Management ............................................................. 30 4.3 Enabling Technology ............................................................................................. 32 4.4 Technical Asset Management Initiatives in the Public Sector ................................. 32
2.
3.
4.
Appendices ............................................................................................................................... 34 1. Asset Management Study Methodology ............................................................................. 34 1.1 Methodology Overview .......................................................................................... 34 1.2 Research Phase .................................................................................................... 34 1.3 Documentation Phase............................................................................................ 37 Glossary Of Terms ............................................................................................................. 38 List of Acronyms ................................................................................................................ 42
2. 3.
List of Tables
Table 1 - Asset Management Recommendations ....................................................................... 3 Table 2 Asset Management Issue Analysis Summary ............................................................23 Table 3 Contact Plan Participants ..........................................................................................35 Table 4 FAME Team Members ................................................ Error! Bookmark not defined. Table 5 - BearingPoint Team Members ....................................... Error! Bookmark not defined.
List of Figures
Figure 1 - Future State Asset Management Business Processes and Supporting Technology ... 4 Figure 2 - Enabling Technology that Supports Integrated Business Processes .......................... 8 Figure 3 Asset Management Life Cycle Current State ............................................................18 Figure 4 Current State: Acquisition Phase..............................................................................18 Figure 5 Current State: Use Phase ........................................................................................19 Figure 6 Current State: Utilization & Donation Phase .............................................................20 Figure 7 Current State: Sale Phase........................................................................................21 Figure 8 Current State: Abandonment and Destruction Phase ...............................................22 Figure 9 Comprehensive Asset Management Technology ..................................................30 Figure 10 Ishikawa Diagram Example ....................................................................................36 Figure 11 Value and Prioritization Matrices ............................................................................37
1. EXECUTIVE SUMMARY
1.1 Introduction
In 2003, the Federal Asset Sales team, under an e-government Presidential Priority initiative, conducted a study on personal property Utilization and Donation (U&D) and identified multiple recommendations to improve the program. The U.S. General Services Administration (GSA) Office of Governmentwide Policy (OGP) is responsible for implementing a number of these recommendations. One of the breakthrough recommendations identified was to conduct a study of the personal property asset management life cycle to identify Government-wide areas of improvement. As a result, OGP formed the Federal Asset Management Evaluation (FAME) team to lead this initiative. The FAME team, supported by BearingPoint (hereinafter referred to as the team), conducted in-depth research and analysis of all phases of the asset management life cycle, including Acquisition, Use, U&D, Sale, and Abandonment and Destruction. The team interviewed representatives of private-sector companies, state governments, asset management software vendors, technology providers, and Federal agencies to capture industry best practices. The results of this research are presented in this report. Furthermore, this report offers business process and systems recommendations for Federal agencies to conduct life cycle asset management. In addition to these recommendations, the report includes an overview of, the proposed future state of comprehensive asset management and the technology available to support asset management, as well as an appendix that consists of the following:

Asset Management Study Methodology (Appendix ) 1 Glossary of Terms (Appendix ) 2 List of Acronyms (Appendix ) 3 Document References (Appendix Error! Reference source not found.) Asset Management Team Members (Appendix Error! Reference source not found.)
This section provides an executive summary of the report that includes a summary of key findings, asset management recommendations, and next steps.
1.2 Summary of Key Findings

During the research phase, the team identified personal property asset management business challenges that confront Federal agencies. These issues impact the program in the following areas: unneeded procurement, maximizing asset utility, data handoff, maintenance and administration costs, life cycle costs and consequences, and performance measurement. These issues are summarized below and are further analyzed in Section .2. 3 Unneeded Procurement. Federal agencies spend procurement dollars on property that is not needed, and they do not emphasize excess as the first source of supply. Maximizing Asset Utility. Agency-owned property or property under contractor control is not being used to its fullest extent during its useful life, because data necessary to make informed re-utilization and disposal decisions is not captured. Data Handoff. Asset management data is not leveraged throughout all phases of the propertys useful life. For example, asset-specific data critical for effective asset management is not
systematically captured at the acquisition stage. Also, the maintenance history for property is not retained in an agencys asset management system (or supporting system) and is, therefore, not made available during the U&D phase. Maintenance and Administration Costs. Unnecessary property maintenance and administration costs are incurred during all stages of the life cycle, due to challenges in tracking warranty and maintenance costs and in incurring warehousing and custody costs for assets that are not reutilized. Life Cycle Costs and Consequences. The potentially negative affects of owning the property at each stage of its life cycle are not considered before the property is acquired. For example, costs of disposition of certain hazardous assets are not consistently planned or applied. Performance Measurement. Performance measurement processes throughout the life cycle are not consistently defined and used by each agency to measure the effectiveness of their asset management program.
1.3 Asset Management Recommendations

Interviews held with research phase participants as well as research conducted by the team revealed multiple opportunities for improvement within the program. As a result, the team identified recommendations to address program issues and devised two matrices to prioritize the recommendations. The team evaluated and prioritized each recommendation based on business criticality, operational benefit, financial benefit, and ease of execution. Finally, the team consolidated these recommendations under two categories-core and complementary recommendations-as described in Table 1.
Table 1 - Asset Management Recommendations Lead Document Agency Reference Core Recommendation: Critical for achieving the future state, a comprehensive asset management program. Federal agencies should implement a software-based asset Inter-agency management system that effectively integrates with the agencies Section .2 2 Working Enterprise Resource Planning (ERP), financial, and procurement Group systems and is seamlessly linked with GSAXcess. Complementary Recommendations: Support the core recommendation and will assist agencies move towards comprehensive asset management. Develop comprehensive personal property asset management Section .3.1 2 GSA OGP regulations and systems. Identify a personal property executive at each agency who is responsible Office of for overseeing his/her agencys comprehensive asset management Management Section .3.2 2 program. and Budget (OMB) Integrate property data from the Federal agencys asset management GSA Federal system to GSAXcess. Supply Section .3.3 2 Service (FSS) Advertise available property in GSAXcess in a central repository that will Section .3.4 2 allow Federal agencys acquisition system to automatically identify GSA FSS excess before comparable property is purchased. Identify Federal Supply Classes having no historical re-utilization value Section .3.5 2 GSA FSS for direct donation via State Agencies for Surplus Property. Pursue sales and exchange sale proceed reform options. Section .3.6 2 GSA OGP Recommendation Description Implement the following changes to the Non-Federal Recipient Report: enforce annual submission and differentiate special authority transfers. GSA OGP Section .3.7 2
1.4 Next Steps

It is important that actions be taken immediately to implement the proposed recommendations. The high-level steps that must take place are listed below. 1. GSA OGP, FAME, and other meeting participants review this report and its proposed recommendations. 2. GSA OGP approves recommendations and identifies next steps. 3. The team develops an implementation plan that identifies tasks and sub-tasks, task owners and stakeholders, and timelines for each approved recommendation. 4. GSA OGP reviews implementation plan and identifies next steps for each recommendation with the lead agency.
2. ASSET MANAGEMENT RECOMMENDATIONS

2.1 Future State
Comprehensive asset management will maximize the value of the governments portfolio of personal property assets. The team defines comprehensive asset management as the business processes, supporting systems, and enabling technologies that are required to accomplish the following:

Procure assets strategically Track and manage assets throughout their useful lives Dispose of assets appropriately and efficiently based on acquisition and use phase information and data
Life cycle asset management will foster the reuse of excess property, it will provide complete asset visibility throughout the lifecycle, and it will improve decision making during the use and disposition phases by leveraging better asset specific data.
The proposed future state of comprehensive asset management will foster the re-use of excess property. It will provide asset visibility throughout its useful life and will improve asset usage and disposition decision-making through better data capture. Furthermore, it will drive efficiency in the disposition of assets once they are no longer needed by the acquiring program.
2.1.1 Business Processes

As seen in Figure 1, asset management consists of three high-level business processes: the acquisition of an asset, the use of an asset during its life, and the disposition of an excess asset. Importantly, in the future state, these three business processes should be integrated, and they should include inputs and outputs from other systems and processes, as well.
Figure 1 - Future State Asset Management Business Processes and Supporting Technology
2.1.1.1 Acquisition Initially, an office within a Federal agency with a property requirement to be fulfilled identifies the need for an asset. For capitalized assets (i.e., an asset whose value is equal to or exceeds the agencys capitalization threshold and, therefore, needs to be accounted for during its lifetime), agency property-using staff, logistics staff, and procurement staff should work collaboratively to further define the need and plan the acquisition of the asset. The collaboration should include the determination of the following:

Agency procurement staff, logistics staff, Type of asset to be procured and property users should collaborate for all Alternative asset types to be significant acquisitions, to fully understand considered the quality and price tradeoffs for acquisition Any necessary components or alternatives, and to manage the impact of the services that will be needed to set asset across the life cycle, including any up the asset usage or disposal ramifications. Any budgetary or legal constraints Costs related to maintenance and disposal for the asset Training requirements for property users Warranty and maintenance schedules for the asset Whether there are any special shipping, receiving, and storage issues or any delivery circumstances (e.g., are the buildings doorways large enough to accommodate a large piece of equipment?) Whether there are any environmental, hazardous waste, or other issues related to the use and disposition of the asset
The procurement staff will use the data and asset-specific information to acquire the asset. Clearly, there are other agency systems that need to be integrated with the agencys procurement system.1 The agencys financial system will need to record when the asset is acquired and will need to generate the relevant financial transactions, such as paying an invoice for the asset and establishing its depreciation schedule. The agencys procurement system should be integrated with GSAXcess so that the property-using staff and procurement staff can easily determine whether there is excess property to meet the programs identified need. Insertion Stage At the insertion stage, the agency receives the asset from a supplier, and it is inserted into use by the agencys appropriate program office. Previously, during the acquisition process, a skeleton asset record was created in the agencys procurement system. At this stage, once the asset is received by the agency, the original asset record is updated in the agencys asset management system to capture the information needed to manage the asset throughout its lifetime. Depending on the type of asset procured, the following information may be necessary:

1
Manufacturer Model number Serial number or other identifier (such as a Vehicle Identification Number) Picture Acquisition cost
Secret Service has implemented a COTS asset management system that has been integrated with their procurement system.
Estimated useful life Warranty information Maintenance schedule Condition of asset Location Custody assignment
Capturing asset-specific data electronically at the acquisition phase will enable strong asset management to occur throughout the assets useful life.
Capturing data electronically sets the stage for strong asset management during the useful life of the asset. 2.1.1.2 Use During this process, the assets records are updated to capture relevant asset activity. For example, maintenance records should be updated to reflect repairs, calibration, or other maintenance activities. Users should be able to easily check to see if an asset is under warranty in order to avoid unnecessary repair costs. Further, it should be easy for users to initiate repairs under warranty. Property managers, or other appropriate personnel, should initiate inventory audits, so that the agency can determine whether the asset exists and whether it is being used. Any such activity should be reflected in the agencys property management system. Similar to the acquisition process, the systems that support this process need to be integrated. For example, the financial system will need to pay for maintenance, and it should calculate depreciation only for assets that are in use and have not been donated, sold, or destroyed. Retirement Stage Once the acquiring program no longer needs an asset, the asset management system should support intra-agency screening to determine whether other programs within that agency could use that asset. If the agency was granted legislatively created special authority to transfer unneeded assets to a non-Federal recipient, such transfers take place at this stage. The asset management system plays two roles during the retirement stage. First, it provides asset usage information so that recipients, whether they are within the agency or through special authorities, have the asset-specific data necessary to make an informed decision to obtain the asset. Second, the asset management system needs to capture the disposition results so that custody, ownership, and financial records can be updated as appropriate. 2.1.1.3 Disposal When the acquiring agency no longer has a use for the asset - and it has not been transferred within the agency or via special authority - the asset is considered excess and transitions to the U&D process. Relevant asset usage information, such as location, condition, and maintenance records, should be seamlessly transferred into GSAXcess so that other Federal agencies can screen the asset for re-utilization. If there are no Federal agencies that can utilize the asset, it will be available for state and local governments and nonprofit organizations through the donation process. That same asset-specific data that allows Federal agencies to make informed decisions regarding the re-utilization would also benefit donation recipients. Improved asset management processes, where agencies learn from previous activity, can drive efficiencies in the U&D program. For example, if there are asset classes or Federal Supply Classes (FSCs) that are rarely (if ever) re-utilized, those assets should be able to bypass the utilization process and be sold or donated via the State Agencies for Surplus Property. The agencies cost to warehouse the asset and to administer the utilization program would be eliminated.
Again, the systems that support these processes need to be integrated. For example, GSAXcess should be integrated with the agencys asset management system so that the agency knows when the asset has been re-utilized or donated and that its custody responsibilities are over. In an asset sale scenario, the agency will have to process the financial transactions, including the recovery of its direct costs for the sale. The financial records of the agency would then need to be updated to indicate that the agency no longer owns the asset. As noted throughout this section of the document, integration of systems that support the business processes is critical. An agencys procurement system needs to integrate with both the asset management system and the agencys ERP financial management system. GSAXcess is a critical integration link, as well, in order to facilitate the usage of excess as the first source of supply. The asset management system will need to be updated on a real-time basis to reflect the various asset management tasks as they occur. Also, the asset management system needs to seamlessly transfer pertinent asset information into GSAXcess to drive efficiencies in the U&D programs and to provide potential buyers with full information so they can purchase with confidence. Clearly, GSAXcess is a federalized shared service model where GSA performs a number of U&D tasks on behalf of Federal agencies. Further, asset management could operate under a shared service model, similar to the OMB e-Government Financial Management Line of Business initiative.
Rather than each agency planning, procuring, implementing, and maintaining a comprehensive asset management system, there could be a limited number of Federalized asset management systems with the scope and scale to accommodate multiple Federal agencies.
2.1.2 Supporting Technology for Comprehensive Asset Management

As depicted in Figure 2, technology, including Radio Frequency Identification (RFID), Unique Identification (UID), and bar codes and readers, support integrated business processes when based on Electronic Data Interchange (EDI) and Extensible Markup Language (XML).
Figure 2 - Enabling Technology that Supports Integrated Business Processes
Acquisition Phase At acquisition, agencies should obtain property either through eCatalogs or through electronic transactions with suppliers. These transactions would be based on ANSI-12 EDI or XML standards, which enable the automated transfer of purchasing and receiving information between sellers and buyers. This asset-specific information would flow into the agencys ERP system, which may include integrated inventory management, fixed asset management, financial management, and acquisition/receiving modules. The record for a specific asset is created in the procurement system at the point that the supplier ships the asset to the agency. The shipment information is captured by the agency, either through RFID or bar code labels, and can identify the specific agency program or warehouse location where the equipment is to be delivered. RFID and bar code data should be automatically fed into the asset management system, setting the stage for asset management during the assets useful life. Use Phase RFID and bar codes can also be leveraged during the use phase of the life cycle in order to conduct audits of agency assets and assess Agencies should leverage RFID and bar whether the assets are being utilized or whether codes to conduct audits that assess they can be classified as excess. This whether assets are being utilized or are technology is much quicker than manual excess. RFIDs and bar codes efficiency and data capture capabilities make them processes, and it helps to minimize human error. attractive for many asset types. While bar codes may not be optimal for all types of assets, the efficiency and data capture capabilities make them attractive for many asset types. RFID technology will become increasingly accepted to track assets during their useful lives, both as the cost of the application
deceases (as standards become mainstreamed) and as interfaces between suppliers and customers become seamless. The following are critical success factors for comprehensive asset management:
Accelerate the migration from paper to EDI/XML procurement transactions. The ability to electronically capture critical asset data at the acquisition stage is the basis for integrated asset management. The advent of EDI transactions, which rely on ANSI-12 standards that govern purchase orders and shipment documents, allows for the automated population of asset management systems. XML standards are also used to standardize communication between supplier and agency systems. Improve the acceptance and use of eCatalogs. The adoption of this practice helps to standardize the acquisition stage of the asset management life cycle, since the data captured would be uniform across agencies. Maximizing the use of eCatalogs is an important early step in adopting a unified taxonomy for Federal personal property. Facilitate data capture at the asset receiving stage using RFID and bar codes. This factor, which complements the first factor, drives the efficiency by which an agency can conduct asset management. The critical data elements necessary to populate an asset management system can be contained and captured through RFID or bar codes. Populating asset management systems with asset-specific data through bar code readers and RFID transmissions would eliminate the inherently time-consuming and error-prone manual entry of asset information at the beginning of an assets life cycle. Standardize data elements and adopt best practices related to comprehensive asset management. Federal agencies should standardize the data elements needed to conduct asset management in order to facilitate the disposition process through GSAXcess. Agencies also need to identify the asset management best practices that are relevant to their personal property needs and adopt those practices that will support integrated and comprehensive asset management processes. Integrate agencies asset management and procurement systems with GSAXcess. As noted throughout this section, the integration of supporting systems is essential in order to conduct seamless and life cycle asset management. Such systems include an agencys procurement, ERP, financial, and asset management systems. The procurement and asset management systems should tie into GSAXcess, as well, in order to support the use of excess as the first source of supply and to improve the data flowing into GSAXcess so that potential recipients are better informed. This should result in higher re-utilization rates, thus avoiding unnecessary procurements.
In conclusion, a software-based asset management system is essential for agencies to conduct life cycle asset management. The acquisition, use, and disposal business processes need to be supported by enabling technology, such as bar codes and RFID, in order to automate the business processes throughout the life cycle. Asset-specific data should be captured at the acquisition stage, and that data should be used to plan and manage the entire asset life cycle to improve decision-making at each stage. Some Federal agencies are aware of comprehensive asset management and have implemented certain elements of this future state. The future state provides a comprehensive overview of life cycle asset management and forms the basis of the teams core recommendation described below.
2.2 Core Recommendation - Comprehensive Asset Management System

The future state described above should be the model for effective life cycle asset management. This vision forms the teams core recommendation Core Recommendation Benefits for Federal asset management: Federal agencies Maximize Value of Governments should implement a software-based asset Property management system that consolidates existing Rationalize Acquisition Practices By asset management legacy systems, and Avoiding Unnecessary Procurement effectively integrates with an agencys ERP, Improve Usage and Disposition financial, and procurement systems and is Decision-Making linked to GSAXcess. The asset management Drive Efficiencies Across the Life system should support the high-level requirements Cycle addressed in Sections .1 and .2.1. Agencies 2 4 should also utilize the technology and data standards that support the capture of critical, assetspecific data at the procurement stage, that enable the asset to be tracked and managed during its useful life, and that generate the information necessary to make informed disposition decisions.
2.3 Complementary Recommendations

Recommendations that support the core recommendation and will assist Federal agencies move toward comprehensive asset management are addressed in this section.
2.3.1 Develop Asset Management Regulations 2

Description. Draft and adopt a set of comprehensive personal property asset management regulations that promotes complete visibility of asset management data across the life cycle, incorporates best practices from both a technical and a business process perspective, and includes the adoption of consensus standards. The Federal Management Regulations must be revised to include detailed regulations on the acquisition and use processes, as well as comprehensive business processes for the entire life cycle. These regulations and business processes include, but are not limited to, the following:
Conducting a cost analysis for assets slated for A&D to determine whether the cost to store and maintain the property exceeds Draft regulations that promote its projected value from a sale or U&D complete asset life cycle visibility, perspective incorporate best practices for Tracking Government-furnished equipment technology and business and property under a contractors control operations, and includes business Capturing property information from the process consensus standards. manufacturers at the time of acquisition Capturing acquisition data from all sources including, but not limited to, purchase orders, Government credit cards, intra- and inter-agency transfers, loans, and acquisition by forfeiture
Rationale. Detailed regulations governing asset management only exist for the disposal stage, with limited regulations for the acquisition stage. There are essentially no regulations for the use stage. Where regulations are lacking, agencies have developed procedures that are not uniform throughout the entire Federal Government. Regulations can also be subject to misinterpretation and abuse if they lack adequate details. One such regulation relates to the abandonment and destruction stage. Agencies often go straight to the A&D stage without going through U&D first simply because it is easier to abandon or destroy property than to report it as
2
Recommendation is subject to Office of Management and Budget (OMB) approval and legislation granting authority.
10
excess and maintain the property in the meantime. There are no explicit regulations requiring agencies to first conduct a cost analysis of the propertys value versus its maintenance and storage costs and then to use the resulting figures to make a determination to abandon or destroy the property. In conjunction with the lack of regulations governing the entire asset management life cycle, there is an absence of regulations governing the collection of necessary data throughout various stages of the life cycle. This results in some agencies not tracking and maintaining data critical for comprehensive asset management, such as data on Government-furnished equipment and property under a contractors control, data from manufacturers, and acquisition data from all sources. Due to inadequate and/or inaccurate data, it is difficult for agencies to track the location and condition of most property and to make informed decisions throughout the life cycle. Benefits. A set of comprehensive personal property asset management regulations can promote complete visibility of all assets across the life cycle. Furthermore, uniformity among all agencies in managing property is established when there is a set of clearly defined regulations and best practices. Other benefits include the following:

Eliminating wasteful abandonment or destruction of property that still has significant value Leveraging asset-specific data from the use phase to forecast various attributes of the property so that financially sound decisions can be made at the acquisition and disposition stages
2.3.2 Identify a Personal Property Executive

Description. Identify a personal property executive at each agency who is dedicated to overseeing the agencys comprehensive asset management program. The personal property executive will be responsible for the following:

Ensuring that property management regulations3 are carried out to the highest level. Promoting communication between Federal agencies on personal property issues and best practices. Implementing asset management best practices appropriate for the personal property executives agency. Establishing performance benchmarks and metrics for each phase of the life cycle by using resources such as the American Society for Testing and Materials (ASTM) Standards and the Government Accountability Office (GAO) Government Auditing Standards (The Yellow Book). Strong asset management requires accountability from both operational and management staff; therefore, benchmarks and metrics must extend to these staff members performance ratings. Implementing a professional-level training program for both personal property managers and program managers. Specific training curriculum should be at the discretion of the personal property executive, and, again, resources such as the ASTM Standards should be leveraged to develop the training curriculum. ASTM has developed a curriculum of courses, training, and experience to achieve certain levels of professional certification. This curriculum can be applied by the personal property
Regulations include, property management in 31 USC 503(b)(2)(E) and The Chief Financial Officers Act of 1990.
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executive to his/her agency as suited, to meet the needs of their own property management objectives. Identifying opportunities to use a shared services model for asset management processes. A shared services model already exists in Federal property management: GSAXcess is a shared services model for the disposal of excess property. GSA and agencies should explore whether comprehensive asset management is appropriate for a shared services model, similar to GSAs Financial Management Line of Business initiative. Implementing innovative ideas, such as inventory by exception4 or statistical averaging, designed to improve the personal property executives asset management program.
Rationale. In most cases, the number of personnel responsible for asset management at each agency is insufficient5, and those personnel may not be responsible for property management on a full-time basis. Furthermore, agencies lack a focal point for property management oversight and accountability. There would be benefit in naming an executive who would be responsible for overseeing all personal property management on a full-time basis. The other issues that can be resolved through the responsibilities of the personal property executive are:

Lack of communication among agencies to share ideas on best practices and property issues resolution. Lack of leadership to oversee the successful implementation of best practices for a comprehensive asset management program. Lack of measurements to assess performance of each phase of the life cycle. Furthermore, there is no performance benchmark to use for comparison. Lack of training among property and A personal property executive could: program managers in order to Implement appropriate asset effectively manage and carry out the management best practices best practices for each phase of the life Establish performance cycle. benchmarks for each life cycle Lack of shared services among phase agencies such that the knowledge Identify shared service agencies have of certain types of opportunities for all life cycle property is leveraged among all other phases, including whether asset agencies to ease the management of management should be a their own property through certain Federalized line of business processes, such as the acquisition and disposal processes.
Benefits. Assigning an individual who is accountable for implementing and enforcing regulations and best practices ensures the continued success of an agencys asset management program. The benefits of having a personal property executive at each agency carry out the responsibilities outlined in this recommendation include the following:

Sharing ideas between agencies on best practices and solutions to property management problems. Evaluating the effectiveness of each stage of the asset management life cycle using performance metrics and identifying areas for improvement. In order to evaluate and
4 5
Further defined in ASTM Standard E 2219-02 Standard Practice for Valuation and Management of Moveable, Durable Property. Most Federal agencies personal property asset management budgets have decreased over the last decade.
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monitor the success of asset management, performance benchmarks need to be established so that there is an established baseline performance level for performance comparisons. The baseline measure can provide quantitative and qualitative levels of performance analysis. Keeping personal property managers and program managers current with best practices in property management through a professional-level training program. Acquiring and disposing of property in an appropriate and efficient manner by leveraging the expertise gained by those agencies that have significant experience in managing such property.
2.3.3 Integrate Disposal Data from Asset Management System to GSAXcess

Description. Complete asset visibility depends on a seamless flow of data through each phase of the life cycle. When an asset is no longer needed by the acquiring agency, comprehensive asset information must be automatically transferred from asset management systems to GSAXcess. Critical elements of this recommendation include the following:
Developing a standardized taxonomy for all asset information that flows to GSAXcess.6 The standardized taxonomy could follow existing guidelines such as the United Nations Standard Product and Services Classification. Determining whether agencies must either conform to the new standards and update their asset management systems appropriately or if they should be required to publish their standardized taxonomy, allowing GSAXcess to translate that data before insertion. Integrating agency systems with GSAXcess to allow for the seamless transfer of data. Enhancing GSAXcess to require users to follow the guidelines of the new taxonomy when adding new assets through the GSAXcess user interface.
Rationale. Standardized naming convention for the various data elements of an asset has been a well-known problem for Federal agencies and, unfortunately, little has been done to address it. The lack of a consistent naming taxonomy has made it difficult to search for excess as the first source of supply. Furthermore, inadequate property descriptions are commonly inserted into GSAXcess.7 Two methods to load excess property information into GSAXcess are available to agencies-the user interface and batch file submission. The user interface is an adequate option for agencies that report minimal amounts of excess; however, this option is not feasible for agencies that report a large amount of excess. To address this, some agencies transfer their excess property by submitting it in a flat file to a network directory. GSAXcess imports the flat file through a nightly batch process. The required flat file is extremely complex and is susceptible to failure. When these flat files do fail to import, the agency and GSA administrators must work together to cleanse the file. Benefits. The following immediate Government-wide benefits can be achieved by implementing this recommendation:
Recommendations 5 and 11 in the General Services Administration Federal Asset Sales Personal Property Utilization and
Donation Study are similar to this recommendation. 7 According to GSAXcess system administrators, approximately half of the Department of Defenses (DOD) property is imported into GSAXcess without adequate property descriptions.
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Enable agencies to easily and accurately search for excess property. Simplify the integration between asset management systems and GSAXcess by following industry standards, such as web services architecture, which promotes system-to-system communication. Standardize asset information into a common taxonomy before it is inserted into GSAXcess. Promote the sharing of asset information among Federal agencies. Alleviate the tedious process of cleansing flat files and reduce the number of resources that support the process, as well as the number of data errors that may occur during the cleansing process. Improve asset descriptions and data in GSAXcess.
2.3.4 Advertise Disposal Data

Description. Approximately $8.8 billion8 of excess property passes through GSAXcess each year. This system contains valuable data and functionality that should be made available to agencies asset management and procurement systems. Agencies procurement systems should be capable of accessing available property in GSAXcess, so logistics and acquisition staff can easily identify excess property before new assets are purchased. Furthermore, asset management systems must be able to automatically update the retirement status of property disposed of in GSAXcess. Rationale. Excess property is made available to agencies through the GSAXcess user interface. Today, GSAXcess is not capable of direct communication with other systems, which prevents agencies systems from accessing disposal information in a real-time fashion. GSAXcess is only capable of importing an agencys disposal data through a batch process. Legacy systems, such as GSAXcess, that contain mission-critical data useful to multiple Federal agencies must provide flexible and customizable interfaces for accessing their functionality. Quite often it is difficult for logistics or acquisition staff to identify whether excess property meets a purchasing requirement. Examples of problems these staff members experience include the following:

Data elements in GSAXcess are not standardized, which complicates the process of identifying property in the system. Training on GSAXcess is only available through agencys request at their expense. Without the necessary training, it is difficult for agencies to identify excess property in the system.
It is difficult for Federal agencies to manually update their asset management systems with an assets retirement status. An assets retirement status is important when it comes to comprehensive disposal analysis. Also, when an asset is retired, that notification needs to be reflected in the agencys financial system. Without some type of automation or notification, these processes can be easily neglected. Benefits. Implementing this recommendation will increase efficiency and decrease unneeded procurement by simplifying the process to screen excess property to prevent unnecessary purchases.
Source: General Services Administration Federal Asset Sales Personal Property Utilization and Donation Study.
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Considering the large reduction in the number of asset management personnel over the last decade, it is important that technology is leveraged to reduce manual business processes and minimize the risk of manual data entry errors. Implementing this recommendation will provide an efficient way for logistics and acquisition staff to identify excess property. Moreover, program personnel will be relieved of updating the asset management system with an assets retirement status. Giving the appropriate staff a simplified approach for excess identification will promote the use of excess as the first source of supply.
2.3.5 Federal Supply Classes with No Historical Re-utilization Value9

Description. Federal property is classified based on Federal Supply Classes (FSCs) that identify categories of assets. Certain FSCs (for example, office supplies10) are rarely re-utilized through intra- or inter-agency transfers or sales. Agencies are still required to report these assets as excess and to warehouse and maintain them during the utilization screening process. Agencies holding excess property under FSCs that have no historical re-utilization value should be given the option to bypass the formal utilization process and go directly to donation via the State Agency for Surplus Property (SASP). Rationale. Holding agencies experience significant warehousing and administration costs when excess property does not efficiently move through the Agencies holding excess property disposal process. Furthermore, searching for property with no re-utilization value should in GSAXcess is a difficult process when large bypass the utilization process and quantities of property exist for a certain FSC that donate through SASPs. historically has not been re-utilized by other agencies. Benefits. If this recommendation is implemented, agencies will realize benefits in the areas of efficiency, social value, and costs. Bypassing the intra- and inter-agency utilization phase will expedite the disposal process for assets with no historical re-utilization value. SASPs will be given first priority for these types of assets, which will increase the quantity of property available for state and local governments and nonprofit organizations. This will be a considerable benefit for the communities the SASPs represent. Cost benefits will be realized by eliminating warehousing and custody expenses for non-re-utilized assets.
2.3.6 Pursue Sales and Exchange/Sales Proceeds Reform Options

Description. This recommendation includes (1) an assessment of the benefits of allowing agencies to retain a larger portion of property sales proceeds, (2) increasing the flexibility in the exchange/sale authority, and (3) a continuous review of the prohibited list for possible reinstatement into the exchange/sale program as the needs of Federal agencies and state Governments change. Rationale. Currently, agencies are not allowed to retain proceeds from the sale of their excess property, except the portion that covers the direct costs associated with preparing the property for sale. Allowing agencies to retain sales proceeds would provide a strong incentive to maximize sales proceeds and otherwise increase the efficiency of the sales program. If agencies were allowed to retain full proceeds from the sale, then the exchange/sale program would cease to exist.
9
Recommendation 6 in the General Services Administration Federal Asset Sales Personal Property Utilization and Donation Study
is similar to this recommendation. 10 Source: General Services Administration Federal Asset Sales Personal Property Utilization and Donation Study.
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Currently, if agencies wish to apply the exchange/sale authority, then they can only exchange their property for the same type and number of property in return. If agencies sell the property under the exchange/sale authority, they can only apply the sales proceeds toward the purchase of the same type and number of property. The proposed recommendation would allow, for example, agencies to sell 10 vehicles and use the proceeds to purchase 5 new vehicles, or to use the sales proceeds to purchase extended vehicle warranties. Even though the latter choice would require new legislation this type of flexibility, rather than the current one-to-one requirement, would improve the effectiveness of the program. The restrictive nature of the regulations surrounding the retention of sales proceeds and the use of exchange/sale authority can cause these processes to be de-emphasized which may not be the optimal asset management course of action. Furthermore, during the acquisition process, property that could have been acquired from exchange or procured using proceeds from sales is currently being procured using new dollars. Benefits. If agencies can retain at least a portion of the proceeds from the sale of their excess property, excluding the portion that covers sale costs, then they will have an incentive to sell the property in lieu of abandoning or destroying it after the U&D stage. Similarly, agencies may be more inclined to use the exchange/sale authority if they have more options to the types of property, proceeds, or service they receive in return.
2.3.7 Implement Changes to the Non-Federal Recipient Report and Its Process
Description. The Non-Federal Recipient Report is an annual report submitted by each agency to GSA that lists the personal property furnished in any manner in that year to non-Federal recipients, including special authority transfers. The report, which is required by Congress, identifies how much property is donated through various means, such as grants and contracts. The Non-Federal Recipient Report is sent to GSA OGP and must contain the following:

Names of the non-Federal recipients Status of the recipients (such as contractor, cooperative, or project grantee) Total original acquisition cost of property furnished to each recipient by FSC group
GSA submits a summary of these Non-Federal Recipient Reports to Congress, as requested. The teams recommended change to the Non-Federal Recipient Report process is to hold the personal property executive accountable for submitting her/his agencys report to GSA on an annual basis. Furthermore, the team recommends that the format of the report be changed in order to differentiate the special authority transfers from other donations in the report. Rationale. Even though the regulations specify that the Non-Federal Recipient Reports be submitted annually to GSA, this requirement is not enforced by each agency, and, therefore, not all agencies submit every year. Furthermore, all donations are currently reported in the NonFederal Recipient Report, including special authorities. However, the donations are all listed together and special authority transfers are not differentiated from the other donations. Since special authority transfers make up a significant part of the disposal of some agencies personal property, it is important to be able to account for these types of transfers. Benefits. Both the enforcement of annual submission along with the indication of special authority transfers on the report would contribute to the vision of total asset visibility. This second change would also provide an important first step in evaluating the effectiveness of
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special authority programs. Moreover, the data collected on the Non-Federal Recipient Report can be leveraged later for reviewing and improving the donation program.
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3. ASSET MANAGEMENT CURRENT STATE

3.1 High-Level Overview of Asset Management Current State
The asset management life cycle, as depicted in Figure 3, consists of five phases: acquisition, use, utilization and donation, sale, and abandonment and destruction. Common business practices that occur in these five phases are covered at a high level in this section.
Figure 3 Asset Management Life Cycle Current State
3.1.1 Acquisition
Figure 4 identifies the high-level processes that occur during the acquisition phase.
Figure 4 Current State: Acquisition Phase
The asset management life cycle begins with the identification of a need within an agency. Before acquiring new property, all agencies must, to the maximum extent practicable, use existing agency property or obtain excess property from other Federal agencies. This practice maximizes the return on Government dollars spent and minimizes expenditures for new procurement. The following criteria must be met when evaluating the use of excess property:

There must be an authorized requirement. The cost of acquiring and maintaining the excess property does not exceed the cost of purchasing and maintaining new material. The sources of spare parts or repair/maintenance services to support the property are readily accessible. The supply of excess parts acquired must not exceed the life expectancy of the equipment supported.
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The excess property will fulfill the required need with reasonable certainty without sacrificing mission or schedule. The agency must not acquire excess property with the intent to sell or trade for other assets.
If procurement is necessary, GSA provides personal property that can fulfill the requirements of the agency through programs such as GSA Global Supply and GSA Advantage. If an agency determines that alternative sources are more favorable, procurement from other sources can be authorized. Therefore, in submitting requisitions for similar items obtainable from either GSA sources or from other sources, agencies shall use the lowest cost source that will serve the functional end-use purpose. Each agencys procurement staff collaborates with the program and logistics staff to plan the procurement. To obtain maximum benefit from the Government funds available for procurement of property, each agency shall:

Ensure that property currently on hand is being utilized to its fullest extent prior to procurement Procure the minimum quantity and quality of property that is required to support the mission of the agency and to satisfy the function for which the property is required Limit procurement of different varieties, types, sizes, colors, etc. of required items to those essential to satisfy the intended purpose
3.1.2 Use
Figure 5 identifies the high-level processes that occur during the use phase.
Figure 5 Current State: Use Phase
Once the property is in the agencys custody, the agency must do the following:

Establish and maintain a system for property accountability Protect the property against hazards such as fire and theft Perform the care and handling of the property Maintain appropriate inventory levels Monitor the property to assure maximum use and develop and maintain a system to prevent and detect nonuse, improper use, and unauthorized disposal or destruction Enforce agency policy for lost, damaged, and destroyed (LDD) property using agency-developed performance measures Offer the property for use elsewhere within the agency when it is no longer needed for the activity for which it was first acquired 19
If the property is not needed by any activity within the agency, then, under provisions of a special authority, an agency may release the property to an outside activity and thereby bypass the U&D process. Eligible recipients contact agencies to determine availability of property. The agency then transfers available property directly to the recipient. The agency and recipient must complete the appropriate internal or program-specific documentation to record the transfer. All special authority transfers and other non-Federal transfers should be reported to GSA annually in the Non-Federal Recipient Report. Agencies should have a system to keep track of warranty information and use warranties to the fullest extent practicable when property is in need of routine maintenance or repair. Maintenance and repair information, regardless of the warranty status, should be maintained as a quality history file for use throughout the asset management life cycle.
3.1.3 Utilization and Donation

Figure 6 identifies the high-level processes that occur during the U&D phase.
Figure 6 Current State: Utilization & Donation Phase
When the property is no longer needed by any activity within the agency, the property enters the U&D stage. The agency declares the property excess and reports it to GSA for possible transfer to Federal agencies first and eligible non-Federal recipients second. Reporting excess property promotes reuse by the Government to enable Federal agencies to benefit from the continued use of property already paid for with taxpayers money, thus minimizing new procurement costs. Federal agencies and entities authorized to participate in the donation program may screen property concurrently. If GSA determines that there is no Federal interest in the property, it becomes surplus property and is available for donation to state and local public agencies and other eligible non-Federal activities. The Federal Property and Administrative Services Act of 1949 requires that surplus property be distributed to eligible recipients by an SASP. A SASPs responsibilities in the donation of surplus property are to:
Determine whether an entity seeking to obtain surplus property is eligible for donation as a public agency, nonprofit educational or public health institution, or program for older individuals Distribute surplus property fairly, equitably, and promptly to eligible recipients in the state Enforce compliance with the terms and conditions imposed on donated property
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3.1.4 Sale
Figure 7 identifies the high-level processes that occur during the sale phase.
Figure 7 Current State: Sale Phase
Surplus property not selected for donation is offered for sale to the public in a competitive marketplace. The holding agency may conduct the sale of its surplus property or have GSA or another executive agency conduct the sale on behalf of the holding agency. The holding agency is responsible for adjusting its financial records to reflect the final disposition. Property may be sold to anyone of legal age, including state and local governments, unless there is a compelling reason to believe the person or entity should not purchase the property. Any method of sale may be used provided the sale is publicly advertised and the property is sold with full and open competition. Methods of sale may include sealed bid sales, in which bid prices are kept confidential until bid opening; spot bid sales, in which bids are examined, and awards are made or bids rejected on the spot immediately following the offering of the item; English auctions or open outcry auctions, in which the bid amounts of different bidders are disclosed as they are submitted, providing bidders the option to increase their bids if they choose; or negotiated sales, in which the selling price is arrived at between the seller and the buyer. The agency must allow for an electronic or physical inspection of the property to be sold. The length of the inspection period allowed depends upon whether the inspection is done electronically or physically. Normally, the agency should provide at least seven calendar days to ensure that potential buyers have the opportunity to perform needed inspections. The agency may retain that portion of the sales proceeds equal to the direct costs and reasonably related indirect costs incurred in selling the property. The agency may retain all sales proceeds only when:

The agency has statutory authority to do so. The property was acquired with non-appropriated funds. The property was in the custody of a contractor or subcontractor and the contract or subcontract provisions authorize the proceeds of sale to be credited to the price or cost of the contract or subcontract. The agency sold property to obtain replacement property under the exchange/sale authority. The agency sold property related to waste prevention and recycling programs.
Any sales proceeds that are not retained must be deposited as miscellaneous receipts in the agency-specific General Fund of the U.S. Treasury. 21
There are two sales reports that agencies must submit to GSA every year. The first is a listing and description of all negotiated sales with an estimated fair market value in excess of $5,000. The second is a summary of transactions conducted under the exchange/sale authority. Agencies should use the exchange/sale authority to reduce the cost of replacement property. If an agency has property that needs to be replaced, they can exchange or sell that property and apply the exchange allowance or sales proceeds to reduce the cost of replacement. Another reason agencies use the exchange/sale authority is to avoid costs, such as administrative and storage, that may be incurred when processing it through the normal disposal process. An agency may use the exchange/sale authority only if it meets all of the following conditions:

The property exchanged or sold is similar to the property acquired. The property exchanged or sold is not excess or surplus, and the agency has a continuing need for that type of property. The number of items acquired must equal the number of items exchanged or sold. The property exchanged or sold was not acquired for the principal purpose of exchange or sale. The agency documents that the exchange allowance or sale proceeds will be applied to the acquisition of replacement property.
3.1.5 Abandonment and Destruction

Figure 8 identifies the high-level processes that occur during the abandonment and destruction phase.
Figure 8 Current State: Abandonment and Destruction Phase
Property may be disposed of by abandonment or destruction without reporting it to GSA when a written determination is made that the property has no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale. The agency must provide public notice of intent to abandon or destroy excess property and include in the notice an offer to sell. The public notice is not needed if the value of the property is so little that it is not economical to even advertise its sale or if abandonment/destruction is required for health, safety, or security reasons.
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The following are restrictions and alternatives to the use of abandonment/destruction procedures:

Property must not be abandoned or destroyed in a manner that is detrimental or dangerous to public health or safety. If the agency becomes aware of an interest from an entity in purchasing the property, the agency must implement sales procedures in lieu of abandonment/destruction. Agencies may donate excess property that has been determined appropriate for abandonment/destruction to a public body without going through GSA. If the agency becomes aware that an eligible nonprofit organization that is not a public body has an interest in acquiring the property, the agency must contact GSA and implement donation procedures.
3.2 Key Findings

During the research phase, the team identified specific issues surrounding the asset management program that impact various stages of the life cycle. Causes were identified for each issue and were organized into five categories: policies, people, skills, suppliers, and systems. The issues and their associated causes are described in this section. Table 2 summarizes the six issues and their associated causes by category.
Table 2 Asset Management Issue Analysis Summary Issue Unneeded Procurement Policies Few incentives; Use it or lose it budget; No enforcement to check excess first Asset Management Issues People Skills New is better No training and than used; knowledge to No access in check excess system to first; check for No training to excess enter info during acquisition Suppliers None Systems Excess property is not easily identifiable during acquisition process; Lack of info on available property Inability to track property during use; Lack of data during use phase; Unable to forecast and/or capture propertys useful life
Utility Not Maximized During Use
No centralized policy for use; No incentives to report as excess; Out of sight, out of mind; No good approach to inventorying
Lack of resources to oversee usage; Property management not mission critical; No ratio of equipment vs. personnel determination
Inability to leverage data to make informed decisions
None
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Issue Poor Handoff of Data in All Phases
Policies No unified property vocabulary; No value perceived in tracking assets; Non-Federal Recipient Report does not indicate special authority and no compliance
Asset Management Issues People Skills None Inadequate or inaccurate property information entered in system garbage in, garbage out
Suppliers Do not provide useful property info; Do not support universal property naming conventions
Unnecessary Maintenance and Administration Costs
No enforcement of U&D timeframes; No comparison between refurbishment cost & cost to buy new; Agencies dont report excess
Life Cycle Costs & Consequences Not Considered at Each Stage
No requirement to capture life cycle costs
Insufficient resources to monitor usage; Upgrades not added in financials; Warranty & trade-in allowances not fully utilized; Good prop mgmt not mission critical No efficient processing of prop to next phase; Expertise for asset types not shared w/other agencies; Hazardous disposal info not passed down
Minimal communication between acquisition & program mgmt; Identification of excess is reactive; Personnel not trained for efficient life cycle property management Historical disposition info not used for disposal; No analysis to determine if life cycle costs are worth the benefits; Resources not trained to consider life cycle costs
None
Systems Contractor managed prop not in agency systems; No interfaces/ systems to support each phase; Difficult to access data due to multiple prop mgmt systems; Technology not leveraged for tracking all phases No ability to assess property usage; Data not available to compare new cost vs. refurbishment / transportation costs
None
Lack of historical property data
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Issue Asset Management Performance Not Measured
Policies Gathering data to evaluate is challenging in a decentralized agency; Custody policy for property not enforced; No highly developed performance metrics; Value of good asset mgmt performance not recognized
Asset Management Issues People Skills Agencies do Not all not have fully agencies have developed a systematic capabilities to method of measure assigning performance custody for property
Suppliers None
Systems Adequate data are not available to measure common metrics
3.2.1 Unneeded Procurement

Procurement dollars are spent on property that is not needed as well as on a level of quality that may not be required. The causes of unneeded procurement are described below. Policies

There are few positive or negative incentives to procure wisely. There is no consistent enforcement by each agency to check excess as the first source of supply. There is a lack of rigorous capital expenditure oversight. If agencies do not spend their entire allotted budget for the year, then they lose the remainder of their budget. This may also affect their budget for next year, as their budget may decrease.
People

It is human nature for people to prefer new property to used. Personnel responsible for procurement may not have access in the appropriate system(s) to check for excess.
Skills

Procurement staff may lack the training and knowledge to check excess as the first source of supply. Staff may lack the training necessary to enter adequate property information into the system at the time of acquisition.
Systems

Excess property is not easily identifiable during acquisition. There may be a lack of information on the available intra-agency property.
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3.2.2 Utility Not Maximized During Use

Personal property is not being used to its fullest extent. The causes of not maximizing utility are described below. Policies

There is no centralized policy governing the use stage. Property that is no longer used is not reported as excess due to the lack of incentives to do so. Strong oversight is difficult for agencies with a decentralized asset management program. No systematic usage assessment is made to detect whether a property is no longer needed and can be reported as excess.
People

The number of resources available to oversee usage is inadequate. Property management is not viewed as a mission-critical activity for most agencies. Absence of equipment-to-personnel ratio determination results in abundance of property.
Skills
Staff has received insufficient training in order to use historical data to make informed property usage decisions.
Systems

Ability to efficiently track property during use stage is not readily available in some agencies systems. Historical data are not always available in order to make informed decisions, such as the ability to forecast a propertys useful life.
3.2.3 Poor Handoff of Data in All Phases

Collected property data are not leveraged throughout all phases of the propertys useful life. The causes of poor handoff of data are described below. Policies

There is no standard taxonomy of asset information among agencies. Agencies do not perceive value in tracking assets in each stage. The Non-Federal Recipient Report does not indicate the special authority transfers and compliance is questionable.
People
Inadequate or inaccurate property information is entered in the system.
Suppliers
Suppliers may not always provide useful property information.
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Suppliers do not support universal property naming conventions.
Systems
Data for government-furnished equipment or property in a contractors control is stored in the contractors systems and may not be readily available to the Government agency. There is a lack of interfaces and/or systems to support each phase of the life cycle. Multiple property management systems make it difficult to access required data. Technology is not leveraged to track property across all phases.
3.2.4 Unnecessary Maintenance and Administration Costs

Unnecessary property maintenance and administration costs are incurred during all stages of the life cycle. The causes of unnecessary maintenance and administration costs are described below. Policies

U&D procedural timeframes are not enforced and there are no incentives for compliance. Agencies may not report property as excess when it is no longer used because they may not know which property should be reported as excess, or they may have no incentives to do so. Financial analysis to compare the refurbishment cost of a used property versus the cost to buy new property may not be conducted.
People

There are insufficient resources to monitor property usage. Value of upgraded property may not be reflected in its financial record. Warranties, rebates, and trade-in allowances are not fully utilized. Efficient property management is not viewed as mission critical within agencies.
Skills

Minimal communication takes place among acquisition, logistics, and program management staff to make proper purchasing decisions. Cost-reduction techniques, such as checking excess property as the first source of supply, are not enforced. Personnel are inadequately trained for comprehensive asset management.
Systems

Systems lack the ability to assess property usage. Historical data to compare the cost of buying new versus refurbishing, as well as the costs of moving the property, are not readily available.
3.2.5 Life Cycle Costs and Consequences Not Considered at Each Stage
The potentially negative affects of owning the property at each stage of its life cycle are not considered at the time of acquisition. The causes of life cycle costs and consequences are described below.
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Policies
There are no requirements to capture life cycle costs.
People

There is a lack of efficient processing of property into the next phase of the life cycle. Acquisition and disposal expertise gained for asset types is not shared with other agencies or program areas. Personnel responsible for acquisition or logistics may not pass down important information, such as the disposal of hazardous property, to program areas.
Skills

Historical disposal information is not leveraged to improve the disposal process. Minimal analysis is conducted to determine whether the associated life cycle costs for property are worth the benefits it provides. Resources are not trained to consider costs and consequences at each stage of the life cycle.
Systems
There is a lack of historical property data, including maintenance and warranty information, which can be used for the acquisition planning process.
3.2.6 Asset Management Performance Not Measured

Performance measurement processes throughout the life cycle are not consistently defined and used by each agency to measure the effectiveness of their asset management program. The causes of asset management performance not measured are described below. Policies

It is challenging to gather all the necessary data to evaluate performance in a decentralized agency. No policy is enforced that establishes custody for an agencys property, and, therefore, it can be difficult to determine who is responsible for the property during performance measurement. Agencies do not have highly developed life cycle performance metrics, due in part to the lack of a standard performance benchmark. Agencies do not recognize the full value of good asset management performance.
People
Not all agencies have a systematic method of assigning custody for property.
Skills
Agencies do not have fully developed capabilities to measure performance.
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Systems
Adequate data are not available to measure common metrics.
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4. TECHNOLOGY THAT SUPPORTS COMPREHENSIVE ASSET MANAGEMENT

4.1 Introduction
Systems and enabling technology are the backbone of an agencys comprehensive asset management program. Systems that support asset management, enabling technology to automate business processes, and current technical asset management initiatives in the public sector are described in this section.
4.2 Systems that Support Asset Management

Based on the teams research, the following four systems play a role in obtaining complete visibility of assets throughout their life cycle:

Asset Management System ERP Modules (Acquisition, Financials) Data Warehouse GSAXcess (GSAs Disposal System)
Figure 9 identifies these systems and the flow of data among them.
Figure 9 Comprehensive Asset Management Technology
4.2.1 Asset Management System

The asset management system is the backbone of the program. There are a number of commercial-off-the-shelf (COTS) solutions available on the market that offer a broad range of functionality to support an agencys program. The teams research and meetings with leading solution vendors identified certain important characteristics related to solution flexibility, business process automation, and historical data. Solution flexibility can be defined as how easily the system can conform to an agencys program with only minor system configuration. A good example of this is a data dictionary, which defines the required and optional data elements of a personal property asset. The system must be
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flexible and allow an agency to easily establish and maintain a data dictionary that meets their mission requirements. Business process automation is a critical element of an asset management system and can significantly reduce manual or repetitive tasks executed by property-using staff. Solution providers typically define business process automation as workflow. A simple example of this may be a notification to property-using staff that an assets warranty period is about to expire. Again, the system must be flexible and allow workflows to be established with minimal modification to the system. Some COTS solutions allow workflows to be defined through the user interface by an advanced user, so that the system can more easily meet specific needs. Data in the system contribute to the success of an agencys asset management program. Without adequate data, it is difficult for agencies to measure the effectiveness of their program. In addition to product information, the system must be capable of updating and storing the following information:

Maintenance: scheduled maintenance, work orders, and history Warranty information Asset transaction history including activities that occur during the use, U&D, sale, and A&D phases Documents associated with an asset Location, and custody point of contact
Having this information readily available will allow property-using staff to easily conduct forecasting and trend analysis, as well as identifying areas of improvement to their program, such as using maintenance records to inform future purchasing decisions.
4.2.2 ERP Modules: Acquisition & Financial Management Systems

In addition to the asset management system, the acquisition and financial systems are key contributors to comprehensive asset management. These systems are typically modules of an agencys ERP package. Unneeded procurement is a significant problem for most agencies asset management programs. While agencies are required to use excess property as their first source of supply, it is often difficult for agencies to easily screen excess assets. Procurement systems should be capable of accessing GSAXcess data to identify whether similar property is available before new property is purchased. This approach will decrease the amount of time it takes to check for excess as well as enforce a checkpoint before new property is purchased. When excess property is not available and procurement is required, agencies must leverage asset information in the procurement system and share that information with the asset management system. For example, at the time of procurement, the procurement system should create a skeleton record and send it to the asset management system that contains detailed product information directly from the supplier. When the agency receives the asset, a trigger must be sent to the asset management system, indicating the skeleton record is now an active asset. This approach will significantly reduce data entry and improve the accuracy of asset data. To align with an agencys financial management system, costs and depreciation associated with an asset will typically be stored in the financial system. Considering that asset financial
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activities will take place in both the acquisition and asset management system, it is important that these two systems are fully integrated.
4.2.3 Data Warehouse

A data warehouse is used for complex business reporting and typically stores key information from appropriate systems across an agencys technical infrastructure. Property-using staff and management must have the ability to report on asset information that resides in the asset management, financial, or procurement systems. The data warehouse will allow these users to accomplish this task by creating ad hoc reports or generating standard reports on asset data across these systems.
4.2.4 GSAXcess
At the end of an assets useful life within an agency, it is made available to other Federal agencies and state and local governments through GSAs Government-wide disposal system, GSAXcess. Data in GSAXcess must be accessible not only through a user interface, but also by an agencys asset management and procurement systems. Today, users can check available excess property through GSAXcesss user interface. When an asset is declared excess, agencies will either enter asset information through GSAXcess or send a batch file from their asset management system to a network directory accessible by GSAXcess. Currently, data in GSAXcess cannot be accessed directly by an agencys system. Furthermore, standardized asset taxonomy has not been established in GSAXcess and has resulted in nonstandard classification of asset data. GSAXcess data and functionality should be made available to agencies systems through a web services architecture (or similar approach), which allows for systems to find and communicate with each other. This vision can be achieved by undertaking these high-level steps.

Develop standard asset taxonomy for all data elements stored in GSAXcess. Give agencies the option of either modifying their systems to adhere to the taxonomy or publishing their taxonomy so their data can be translated to the GSAXcess taxonomy before it is imported into the system. Modify GSAXcess to support system-to-system communication and publish available assets in a central repository accessible by Federal agencies systems.
These steps would enable agencies systems to seamlessly identify available assets, retrieve disposal results, or transfer excess property.
4.3 Enabling Technology

When integrated with an asset management or procurement system, enabling technology, such as RFID and barcode scanners and readers, increases the efficiency of many intensive processes in asset management. A detailed overview of enabling technology can be found in Section .1.2. 2
4.4 Technical Asset Management Initiatives in the Public Sector

Based on research phase discussions, the majority of Federal agencies have not fully conformed to the model described in Section .2. Agencies typically run legacy asset 4 management systems, which lack the functionality and flexibility to successfully manage assets across their life cycles. Moreover, some agencies are using multiple systems, otherwise known
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as stovepipe systems, to manage their assets, which results in increased system maintenance costs and difficulty analyzing programs across an agency. Many agencies recognize these inefficiencies, and some have already implemented solutions or are in the process of implementing solutions that are consistent with the model. Below is an overview of some of these initiatives across the Government.

Secret Service has integrated its asset management solution, Sunflower Assets, with their financial and acquisition ERP modules. Department of Health and Human Services (HHS) has implemented departmentspecific instances of Sunflower Assets and is moving toward one consolidated instance. HHS has an implementation plan similar to the future state model and will be moving towards it using a phased approach. National Aeronautics and Space Administration (NASA) is in the process of consolidating its stovepipe asset management systems into a unified SAP asset management module. Department of Homeland Security (DHS), DOD, and NASA have successfully executed RFID pilot programs similar to what was described in Section .1.2. 2
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APPENDICES
1. ASSET MANAGEMENT STUDY METHODOLOGY
1.1 Methodology Overview
The team partnered with the interagency working group Federal Asset Management Evaluation (FAME) to conduct a comprehensive study on personal property asset management. The study was divided into two phases: the research phase and the documentation phase. Key tasks for each phase were the following. Research Phase Project Scope Definition Current State/Best Practice Review Business Issue Analysis Recommendation Identification and Vetting Documentation Phase Develop Draft Report Incorporate Draft Feedback
1.2 Research Phase

The team reviewed business processes and technology for all phases of the asset management life cycle to identify areas of improvement for Government-wide asset management. The team evaluated business processes and supporting systems and technology in the acquisition, use, utilization and donation, sale, and abandonment and destruction phases. The four key tasks of the research phase are described below.
1.2.1 Project Scope Definition

To kick off the project, the team worked closely with FAME to develop a Gantt chart that identified the projects work breakdown structure. The Gantt chart identified the specific tasks, timeframes, accountabilities, and task interdependencies for the project. The Gantt chart set the course for the project and was used to measure progress throughout the research and documentation phases.
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A contact plan was created to identify stakeholders who the team would interview during the research phase. Table 3 provides a listing of every participant in the contact plan.
Table 3 Contact Plan Participants GSA Integrated Acquisition Environment Office of Governmentwide Policy Personal Property Management Division GSAXcess National Organizations National Property Management Association National Association of State Agencies for Surplus Property Other Federal Agencies Department of Energy (DOE) NASA DHS DOD HHS Private Sector Lockheed Martin Sunflower Major Credit Card Company Tririga Oracle SAP Peregrine
1.2.2 Current State/Best Practice Review

Interviews, a critical element of the research phase, consisted of reviews of participants asset management programs. Key topics addressed during these meetings included:

Current asset management procedures Technology to support asset management business processes Asset management best practices Enhancement ideas for Government-wide asset management
The team also conducted its own research through publications, the Internet, web-casts, and a number of other resources.
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1.2.3 Business Issue Analysis

Six asset management business issues were identified during the current state/best practice review. These issues were broad personal property business challenges that confront Federal agencies. To analyze these important issues and identify their root causes, the team used a well-known methodology, Ishikawa diagramming. Not only did this methodology provide the team with a concise way to structure business issues, but it also provided a context to develop the recommendations. Figure 10 is an example of a completed Ishikawa diagram for one of the identified asset management problems.
Figure 10 Ishikawa Diagram Example
The diagrams were reviewed with FAME to confirm the team understands of the issues.
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1.2.4 Recommendation Identification and Vetting

Over 30 recommendations were identified during research phase interviews, independent research, and analysis of business issues. To refine this list, the team worked closely with FAME and eliminated recommendations that were not feasible for implementation. Furthermore, the team used a methodology, as depicted in Figure 11, to prioritize the remaining recommendations.
Figure 11 Value and Prioritization Matrices
The FAME team prioritized the recommendations using the two matrices in Figure 11. Each recommendation was initially evaluated based on the extent to which it provided operational benefits and how critical it was for the business processes in asset management. Then, the FAME team evaluated each recommendation based on the relative ease of executing (or implementing) the recommendation and the amount of financial benefit that the recommendation could generate. In assessing the results of the prioritization effort, the recommendations fell into two categories, core and complementary.
1.3 Documentation Phase

The findings and recommendations developed during the research phase were presented to the FAME Team and to GSA OGP senior management for their review and comment. Their feedback is reflected in this report. A draft version of this report was submitted to OGP staff and the FAME Team for feedback in January 2005. The reviewers had 15 days to comment on the report. The final report was submitted to GSA OGP in February 2005.
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2. GLOSSARY OF TERMS
Abandonment disposing of an asset by leaving it where it lies (particularly in a foreign country) and publicly renouncing the rights to the asset Acquisition the procurement or otherwise attainment of personal property by a Federal agency American National Standards Institute a private, non-profit organization that administers and coordinates the U.S. voluntary standardization and conformity assessment system Bar Code an array of bars and spaces that are arranged in a predetermined pattern following unambiguous rules to represent elements of data and are used to identify a particular product number, person, or location Capitalization Threshold a dollar threshold over which an organization (either public sector or private sector) treats assets as capital assets, which are therefore recorded on the organizations balance sheet and need to be depreciated over their useful lives. Assets that do not meet this capitalization threshold are expensed in the year in which they are purchased, as opposed to being depreciated Cooperative organization or entity that has a cooperative agreement with a Federal agency Cooperative Agreement legal instrument reflecting a relationship between a Federal agency and a non-Federal recipient, made in accordance with the Federal Grant and Cooperative Agreement Act of 1977 (31 U.S.C. 6301-6308) Destruction disposal of an asset by throwing it away, or destroying it in some other means, such as incineration Disposal the stage personal property goes through after being declared excess. Property can be disposed of by the holding agency through inter-agency transfer, donation, sale, abandonment, or destruction Donation this is the transfer of surplus property to non-Federal governmental agencies and non-profit organizations Electronic Data Interchange the exchange of dozens of standardized transactions in which supply chain partners use EDI translation software to convert data from their internal business systems into industry-standardized formats. Supply chain partners then exchange data directly or indirectly Enterprise Resource Planning a broad set of an agencies operational activities supported by multi-module application software that helps agencies manage the important parts of their business, including financials, human resources, product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders.
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Excess Personal Property personal property under the control of any Federal agency that is no longer required for that agencys needs, as determined by the agency head or designee Exchange replace personal property by trade or trade-in with the supplier of the replacement property Exchange/Sale exchange or sell property and apply the exchange allowance or proceeds of sale in whole or in part payment for the acquisition of similar property Exchange/Sale Property property not excess to the needs of the holding agency but eligible for replacement, which is exchanged or sold in order to apply the exchange allowance or proceeds of sale in whole or part payment for replacement with a similar item Extensible Markup Language a method allowing for the creation of common information formats which allows for sharing of information on the Internet, Intranet, etc. Any individual(s) or companies that wants to share information in a consistent way can use XML Fair Market Value best estimate of the gross sales proceeds if the property were to be sold in a public sale Federal Supply Classification A four digit number used to identify a class of asset, where the first two numbers identify the group of assets, and the second two numbers identify a subgroup Federal Supply Service An office within GSA that facilitates property acquisition and disposition Financial Management Line of Business one of the lines of business consolidation initiatives by GSA and OMB to expand electronic Government. The objectives are to establish common solutions in a shared service model implemented through target architecture and to increase efficiency throughout the federal government, while reducing costs Flat File an electronic file containing records that have no structured relationship Grant assistance award and a legal instrument that permits a Federal agency to transfer money, property, services or other things of value to a grantee when no substantial involvement is anticipated between the agency and the recipient during the performance of the contemplated activity GSA Advantage online shopping and ordering system that provides access to thousands of contractors and millions of services and products GSA Global Supply supply system providing a vast selection of supplies for government customers anywhere in the world Hazardous Personal Property property that is deemed a hazardous material, chemical substance or mixture, or hazardous waste under the Hazardous Materials Transportation Act (HMTA) (49 U.S.C. 5101), the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6981), or the Toxic Substances Control Act (TSCA) (15 U.S.C. 2601-2609)
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Holding Agency Federal agency having accountability for, and generally possession of, the property involved Non-appropriated Fund Activity activity or entity that is not funded by money appropriated from the general fund of the U.S. Treasury, such as post exchanges, ship stores, military officers clubs, veterans canteens, and similar activities; such property is not Federal property Original Acquisition Cost The cost of an item at the time of original procurement Personal Property any property, except real property or financial instruments. The term excludes records of the Federal Government, and naval vessels of the following categories: battleships, cruisers, aircraft carriers, destroyers, and submarines Property Act Federal Property and Administrative Services Act of 1949 (63 Stat. 377 and 386), as amended (codified as amended in scattered sections of titles 40 and 41 of the United States Code), the law that centralized Federal property management and disposal functions under the GSA Public Agency any State, political subdivision thereof, including any unit of local government or economic development district; any department, agency, or instrumentality thereof, including instrumentalities created by compact or other agreement between States or political subdivisions; multi-jurisdictional sub state districts established by or pursuant to State law; or any Indian tribe, band, group, pueblo, or community located on a State reservation Radio Frequency Identification uses small radio transponders that are activated by a reading transmitter. The transponder can carry a unique ID code or other information in its memory Replacement process of acquiring property to be used in place of property Sale the stage in the asset management life cycle in which surplus property is sold through full and open competition State Agency for Surplus Property (SASP) agency designated under State law to receive Federal surplus personal property for distribution to eligible recipients within the State as provided for in subsection 203(j) of the Property Act (40 U.S.C. 484(j)) Screening process of physically inspecting property or reviewing lists or reports of property to determine whether property is usable or needed for donation purposes Special Authority statutory provision designed to give excess assets to groups that may use them for a particular purpose, such as NASAs scientific equipment aiding research at universities Stakeholder parties that have an interest, financial or otherwise in the Personal Property Asset Management process, to include GSA, Federal agencies, SASPs, taxpayers, and nonprofit and special interest groups Surplus Personal Property (Surplus Property) excess personal property not required for the needs of any Federal agency, as determined by GSA
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Unique Identification the set of data for tangible assets that is globally unique and unambiguous, ensures data integrity and data quality throughout life, and supports multi-faceted business applications and users Use utilization of an asset by the acquiring agency until it is no longer needed Useful Life the span of time in which the Government has custody of the property. The useful life of a personal property starts when the property is acquired by the acquiring agency and ends when it is disposed of through donation, sale, abandonment, or destruction Utilization also known as excess, this is the process of identifying, processing, reporting, and transfer of excess assets among federal agencies
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3. LIST OF ACRONYMS
A&D Abandonment & Destruction ANSI American National Standards Institute ASTM American Society for Testing and Materials DHS Department of Homeland Security DOD Department of Defense DOE Department of Energy EDI Electronic Data Interchange ERP Enterprise Resource Planning FAME Federal Asset Management Evaluation FEDS Federal Disposal System FMR Federal Management Regulation FSC Federal Supply Class FSS Federal Supply Service GAO General Accounting Office GSA General Services Administration HHS Health and Human Services NASA National Aeronautics and Space Administration OGP Office of Governmentwide Policy OMB Office of Management and Budget RFID Radio Frequency Identification SASP State Agency for Surplus Property U&D Utilization and Donation UID Unique Identification
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XML Extensible Markup Language
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GS1

. CHECKOUT . . . Classifying Apparatus and Method . .

. )( . . . . NAFC LOGICON ) ( UGPIC . UPC IBM IBM . NCR .

Bar Code LABEL . .

CC= Country Code M = manufacturer I = item reference c = check digit

: ) .( 1-1-1 ) ( bar - space - bar

9 = 1 -01 9 = Check digit

93 Code 39 . . Log mars

BARCODE LABEL TYPES

)"2 PART ("Dumb

GS1 Global User Manual

Identification of Trade Items........................................................................................................8

Small Products ...........................................................................................................................16 Processing the GTIN ..................................................................................................................17

Symbol Marking Trade Items.....................................................................................................19

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Application Identifiers (AIs).......................................................................................................30 Logistic Units..............................................................................................................................31

Variable Measure Trade Items...................................................................................................34

Special Cases ......................................................................................................................36

11. 12. 13. 14. A.

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Basics and Principles of the GS1 SYSTEM

Global Trade Item Number (GTIN)

Serial Shipping Container Code (SSCC)

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Global Location Number (GLN)

Bar Code Symbologies

4 512345 678906 >

< 3456 9870 >

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Identification of Trade Items

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either: GTIN-14: 15412150000151 or: GTIN-13: 5412150000161

either: GTIN-14: 25412150000158 or: GTIN-13: 5412150000178

Note: These examples show both numbering solutions.

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GTIN Numbering Structures

GTIN-13 Data Structure

GS1 Company Prefix

Check Digit N13

N1 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12

GTIN-12 Data Structure

U.P.C. Company Prefix

Check Digit N12

GTIN-8 Data Structure

GS1 Company Prefix

August-2006, Issue 8.1