GLN: small number, big impact
Everyone knows the GTIN (the EAN) on products. But behind the scenes, another GS1 standard plays a crucial role: the Global Location Number (GLN). Although many organisations use it every day, the concept remains unfamiliar to many.
That is why we spoke to our experts at GS1 about how they view the Global Location Number, its potential and the challenges involved.
What exactly is a GLN?
A GTIN identifies a product. A GLN does the same for organisations and locations.
“Essentially, we have done for locations what we previously did for products,” explains Gianni De Ridder, Senior Product Specialist. “Machines cannot always interpret an address or company name correctly. A GLN is a unique code that allows systems worldwide to know exactly which organisation or location is involved.”
Robin Goossens, Standardisation & Data Services Manager, also sees this as its greatest added value. “Company names change. Addresses change. But a GLN remains a unique, stable identifier. This allows systems to communicate with each other much more efficiently,” Robin explains.
A GLN is not necessarily linked to a physical address either. “Today, a location is a much broader concept. It could be a warehouse, but equally a department, a digital endpoint or even a mobile location,” he explains.
GLN suddenly takes centre stage
Over the past year, GLN has attracted much more attention. The biggest driver? Peppol.
Belgian organisations are required to invoice other Belgian organisations via the Peppol network. This means it must be clear where an invoice needs to be sent.
“A CBE number identifies a company,” says Johan Vernimme, Senior Financial Business Analyst. “But large organisations often have multiple sites or accounting departments. With a GLN, you can send an invoice directly to the right destination.”
He gives a familiar example.
“Think of a city. The library, police, fire brigade and civil affairs department all belong to the same organisation, but they are different services. Thanks to a GLN, each invoice immediately reaches the right department.”
For smaller organisations with a single accounting department, a CBE number is often sufficient. But as soon as there are multiple invoicing flows or sites, a GLN offers clear added value.
One thing to bear in mind: obtaining a GLN from GS1 does not mean that it is automatically available within Peppol. You still need to register it with Peppol yourself before it can be used.
The possibilities go much further
Although Peppol is receiving a lot of attention today, it is only one application.
Robin sees considerable potential for further growth. “More and more organisations are realising that you can identify not only a company, but also individual departments, warehouses, loading docks or digital locations.”
The use of GLNs is also growing internationally.
In the Netherlands, for example, GLNs are used to link certificates to specific agricultural locations. This allows different inspection bodies to know exactly which stable or shed is involved, without having to assign their own names, such as stable A and B or X and Y.
Robin also sees plenty of opportunities in future legislation.
“With new sustainability legislation, it will become increasingly important to know exactly which location a product comes from. A GLN can play an important role there too.”
For example, in connection with the EUDR legislation, Mike & Becky uses GLNs to uniquely identify the different parties and locations in its chocolate supply chain. The cocoa cooperative in Peru, the exporter, the importer and Mike & Becky itself each have their own GLN. By scanning the QR code on the packaging, consumers can see which parties are involved in the journey from cocoa bean to chocolate bar and verify their identity.
Ready for the future
Today, many organisations are familiar with GLN primarily because of Peppol. But its potential extends much further.
From logistics and healthcare to certification, traceability and future European legislation: wherever companies exchange data digitally, there is a growing need for a single, unique way to identify organisations and locations.
As Robin Goossens puts it:
“People are increasingly realising that a GLN identifies not only a company, but also everything within that company. And that is precisely where its strength lies.”
