The Global Location Number (GLN) is a standardized, international identifier used to pinpoint locations and legal entities across the global supply chain. This universal system provides a unique digital address for any physical or functional point a business might need to reference. By replacing proprietary internal codes and text-based addresses with a single, agreed-upon number, the GLN enables worldwide standardization and improves transactional efficiency. Its adoption is widespread in sectors requiring high levels of automation and traceability.
What is the Global Location Number?
The Global Location Number is a globally unique GS1 Identification Key that answers the questions “who” and “where” within a business context. It is part of the GS1 System of Standards, used globally to improve supply chain efficiency and visibility. A GLN can identify a legal entity, such as a company or a specific division, or a physical location, like a warehouse, a production line, or a receiving dock.
The number is non-semantic, meaning the digits contain no inherent logic about the location or entity they represent. The GLN acts as a reference point that links to a master data file containing all associated details, such as the company name, postal address, and contact information. This design ensures that if a physical address changes, the GLN remains constant, only requiring an update to the linked data file. Businesses often assign multiple GLNs to distinguish between various functional units, such as a billing department versus a shipping department.
The Structure of a GLN
A GLN is a fixed-length, 13-digit number composed of three distinct components designed to ensure global uniqueness and data integrity. The first section is the GS1 Company Prefix, a globally unique string of digits licensed to a company by a local GS1 Member Organization. This prefix serves as the foundation for all GS1 identification keys generated by that organization.
The second component is the Location Reference, a number assigned internally by the company to identify a specific party or location. This reference number varies in length depending on the company prefix, ensuring that the total number of digits before the final check digit is twelve. The Location Reference contains no intelligence and is simply a sequential number assigned by the license holder.
The final digit is the Check Digit, which is mathematically calculated from the preceding twelve digits. This single digit is used by computer systems to confirm the accuracy of the number when it is scanned or manually entered. The check digit helps detect common data entry errors, protecting the integrity of the information being exchanged.
Why GLNs Are Essential for Business Operations
GLNs drive significant improvements in business operations by promoting standardization and enabling greater automation. They provide a single, universal method for identifying trading partners and locations, eliminating inconsistencies that arise from using proprietary or text-based address formats. This standardization is important in international trade where partners use different languages and local addressing conventions.
The use of GLNs allows for the seamless interoperability of different enterprise systems across the global supply chain. When two companies exchange business documents, the GLN serves as a machine-readable electronic address that the receiving system can instantly recognize and validate against its master data. This capability reduces the manual data entry and reconciliation processes that often lead to errors. By automating the identification of parties and locations, GLNs improve data accuracy and accelerate the flow of business transactions.
Common Applications of the GLN
GLNs are applied in various operational scenarios, primarily centered on digital communication and physical logistics. One widespread use is within Electronic Data Interchange (EDI), where the GLN acts as the electronic address for both the sender and receiver of standardized business documents. For example, a purchase order or an invoice will contain GLNs to identify the specific corporate entity and the exact physical location involved in the transaction.
In physical logistics and warehousing, GLNs are used to identify shipping and receiving points with precision. A GLN can be assigned to a specific dock door, a designated yard location, or a storage area. This ensures that drivers and warehouse management systems direct goods to the precise spot without confusion, enhancing the efficiency of order fulfillment and receiving processes. GLNs are also utilized for internal asset tracking and inventory management, allowing companies to uniquely identify functional areas like specific departments or individual shelves within a facility.
How to Obtain and Manage a GLN
A business must obtain its GLNs by licensing a GS1 Company Prefix from the GS1 Member Organization in its home country. This prefix grants the company the right to create and manage its own unique set of GS1 identification numbers, including GLNs and Global Trade Item Numbers (GTINs). The process involves an application and a subscription fee to become a member of the local GS1 body.
Once the prefix is secured, the company assumes responsibility for assigning the Location Reference portion of the GLN to its various locations and legal entities. This assignment must adhere to GS1 Allocation Rules, requiring that each GLN is unique and identifies only one specific party or location. Proper management involves maintaining a central, up-to-date database that links each assigned GLN to the corresponding physical address and contact information. This master data must be accurately communicated to all trading partners before the GLNs can be used in business transactions.
GLN vs. Other Identification Systems
The GLN serves a distinct purpose within the GS1 system compared to other widely used identifiers. While the GLN identifies a legal entity or a physical location, the Global Trade Item Number (GTIN) identifies a product or service. The GTIN is the number found under the barcode on retail items, specifying what the item is, while the GLN specifies where it is or who is involved in the transaction.
The Serial Shipping Container Code (SSCC) is another identifier that uniquely identifies a logistics unit, such as a pallet or a large carton, for tracking during transport. A shipment might use an SSCC to track the pallet, GTINs to identify the products on the pallet, and GLNs to identify the shipping and receiving warehouses. These globally recognized standards provide the common language required for standardized, automated communication across the supply chain, unlike proprietary internal codes which are not recognized by external trading partners.