GTIN vs. UPC: How these codes help you track your inventory

If you plan to sell products—as either a wholesaler or a retailer—there are some abbreviations you’ll need to learn to navigate key systems. For example, knowing the difference between GTIN and UPC (as well as SKU vs. UPC) is key to consistently tracking your sales. 

As a first step, picture a barcode. What you see in your mind’s eye is likely a string of digits under a collection of vertical black lines. Those vertical lines are a Universal Product Code (UPC), and the digits are a Global Trade Item Number (GTIN).

To help you understand the role they play in the order fulfillment process, let’s break down what information is contained in each of these codes. 

What is a GTIN?

A GTIN is a unique string of digits that identifies an item on its journey from manufacturer to consumer. GTIN length varies depending on the specific application for the code. Let’s look at the different types: 

GTIN-8: An 8-digit GTIN is predominantly used in North America. It is typically paired with a UPC to create a barcode and is ideal for small products with limited space for coding.

GTIN-12: A 12-digit GTIN is largely utilized in North America. The GTIN-12 is also paired with a UPC to form a barcode.

GTIN-13: A 13-digit number is used extensively in Europe and other parts of the world. For barcode creation, it is paired with a European Article Number (EAN).

GTIN-14: This 14-digit GTIN is used for more detailed product identification. In North America, it is paired with a UPC for barcode creation, whereas outside North America, it is paired with an EAN.

These GTIN formats help ensure products can be uniquely identified and accurately tracked across global supply chains.

The numbers within a GTIN are not randomly assigned. Each one communicates a specific piece of information.

• The first digit of the GTIN is called the Number System Digit. It specifies the number and format of that specific GTIN.
  
• The second set of digits—which range in length—is called the Company Prefix. It identifies the manufacturer as the owner of the barcode and the product it’s on.
  
• The next set of digits—which also ranges in length—is called the Item Reference. It represents a particular product in a company’s roster.
  
• The final digit in a GTIN is called a Check Digit. It guarantees the accuracy of the GTIN. 

Through this system, GTIN identifies products, enabling efficient management of inventory, supply chain processes, and point-of-sale transactions.

What is a UPC?

After reading all of that, you might ask yourself, “If a GTIN contains so much detailed information, then why do we need the black vertical lines of a UPC?”

Those lines are a quick way to encode numbers because humans can’t just glance at, memorize, and interpret a long string of digits. So each of the lines in a UPC represents a number. Some lines are thick, some are thin, and they’re all arranged in a special way. This arrangement creates a unique pattern. 

Now, the human eye isn’t able to decipher the information in that pattern either, but it can be instantly read by any machine that can scan a barcode. 

So for any item with a barcode, your customers won’t have to stand around and wait for the cashier to manually type in long codes—it’s a quick scan instead. And if you are a vendor working with retail partners, they will be able to scan your barcode in order to add your product to their point-of-sale system inventory. 

UPC vs. GTIN

While GTINs and UPCs are closely related, they serve different but complementary roles in product identification and tracking. Paired together, GTINs and UPCs create a comprehensive system for product identification, tracking, and management. 

Here is a more detailed breakdown of the differences and similarities between GTINs and UPCs:

GTIN	UPC
A unique string of digits identifying an item	A barcode symbology for scanning products
Numeric (8, 12, 13, or 14 digits)	Graphic (vertical black lines)
Uniquely identifies products globally	Encodes product information for quick scanning
Company prefix, item reference, check digit	Visual representation of the GTIN
Used in databases, inventory systems	Used at point of sale, on product packaging
Used worldwide	Primarily used in North America
Can be read by humans	Requires a scanner to interpret

Why are these codes important? 

While a speedy checkout is certainly good for business, there are other benefits to a barcode that combines an item’s GTIN and UPC. 

1. Sets a standard method for trade partners to identify goods and services
Each GTIN uniquely identifies a specific product variant. This includes information about the manufacturer, the product itself, and sometimes the packaging level. This specificity allows for accurate tracking of individual items within a product line.

2. Helps you track goods all the way through the supply chain
When products are shipped from one location to another, GTINs are scanned at various points in the supply chain. This helps ensure that the right products are picked, packed, and shipped, reducing the likelihood of shipping errors.

3. Fights counterfeiting in the supply line
Customs and regulatory authorities can use GTINs to verify the authenticity of products at various points of entry, such as ports or border checkpoints. This helps prevent counterfeit goods from entering the legitimate supply chain.

4. Makes it easier to return or recall products
Retailers can use GTINs to quickly identify affected products and notify consumers about recalls or returns. The unique identification provided by GTINs helps in accurately communicating which specific products are involved and need to be returned or replaced.

5. Allows inventory to be quickly and accurately maintained
Scanning GTINs during receiving, storage, and order fulfillment processes allows for real-time tracking of stock levels and helps prevent running out or overstocking. This is especially important for people who are selling across platforms.

How to get a GTIN for your product

Obtaining a GTIN is a straightforward process. Here are the simple steps:

1. Join a standards organization: First, you’ll need to become a member of a local GS1 organization. GS1 is a global standards body that provides GTINs along with other types of standards for global commerce.
2. Apply for a company prefix: Once you’ve joined GS1, you can apply for a company prefix. This unique identifier is part of your GTIN and represents your company to trading partners worldwide.
3. Assign numbers: After receiving your company prefix, you can start assigning product numbers. You’ll generate these numbers based on the GS1 guidelines, which will ensure they are unique and conform to international standards.
4. Generate the barcode: Finally, convert your GTIN into a barcode format that can be printed and affixed to your products. GS1 provides tools and software to help with barcode generation.

By following these steps, you can obtain GTINs for your products, enabling you to sell them in global markets and manage your inventory effectively.

How to get a UPC for your product

Getting a UPC is a similar process to obtaining a GTIN, as UPCs are a subset of GTINs specifically used in the United States:

1. Register with GS1 US: To obtain UPCs, you need to register with GS1 US, the American branch of the global standards organization. This registration will allow you to receive your unique company prefix.
2. Get your company prefix: As part of the GS1 US registration process, you will be assigned a company prefix that is unique to your business. This prefix is a critical component of your UPC.
3. Assign product numbers: Use your company prefix to assign unique product numbers to each of your items. Each product variant (such as size or color) will need its own number.
4. Create UPC barcodes: Once you have your full UPC numbers, use barcode generation software to create the actual barcodes. These can then be printed on labels or directly on product packaging.
5. Test your barcodes: Ensure that your barcodes scan correctly and comply with retailer requirements. You may need to test them with different scanners and environments to confirm their functionality.

By obtaining UPCs, you ensure that your products are retail-ready, allowing for efficient scanning at point-of-sale systems across a wide range of retailers.

UPC and GTIN codes are two sides of the same coin, but they each have their own roles to play. Barcodes keep supply chain and inventory tracking accurate and efficient so you can run your business better.