24 Understand UCC 128 Compliance
This chapter contains these topics:
To reduce cycle times, limit inventory and increase profitability, most large retailers require that their suppliers conform to UCC 128 Compliance procedures. Standard identification and communications procedures ensure that the distribution process remains efficient for the supplier and the retailer.
24.1 Overview
To adapt UCC 128 Compliance practices, suppliers and retailers adopt the following standard procedures:
| Item | Description |
|---|---|
| Identification codes | The defined structure for each code. |
| Bar code labels | Fixed or variable codes that are used to encode information for a single product unit, a consumer pack, or a collection or packages for shipment. |
| Shipping labels | Shipping labels that follow a specific standard, the UCC Common Label. This standard sets up specific label segments and the information that is contained in each segment. |
| EDI (Electronic Data Interchange) | The exchange of structured machine-readable information over a telecommunications network. |
The benefits to large retailers are:
| Benefit | Description |
|---|---|
| Improved sales | By reducing warehouse cycle time, retailers can get their products on the shelf much earlier. For example, a retailer can increase the sell-through revenue by displaying the product to the customer a week and a half earlier. |
| Reducing safety stock | By receiving information on shipments prior to arrival, companies can react more quickly to shortages and less safety stock is needed. |
| Increased forecasting accuracy | Retailers are able to measure lead time of shipments, which can contribute to reduced safety stocks. |
| Reduced receiving costs | When the shipping label is scanned, the retailer can collect bar coded data faster than manual key entry. Scanning shipping labels is not as labor-intensive and there are fewer errors and omissions than in manual data entry. |
| Improved warehouse management | By having better shipping statistics and reducing warehouse cycle time, retailers can plan floor space and labor schedules. |
The benefits for suppliers to adopt UCC 128 Compliance practices are:
| Benefit | Description |
|---|---|
| Improved cash flow | By reducing the payment cycle times with retailers, suppliers can reduce borrowing requirements and improve cash flow. |
| Improved sales | Retailers penalize those suppliers that cannot adopt UCC 128 Compliance practices. Typically, this is a per transaction penalty to the supplier. If the supplier cannot adopt UCC 128 Compliance practices within a given time frame, the supplier can lose their business with the retailer. |
24.2 UCC Identification Codes
Each company can assign product identification codes. The Uniform Code Council (UCC), the Electronic Commerce Council of Canada (ECCC) and the EAN (outside of Canada and the United States) assign member companies the company identification. In the company identification codes, the first digit is the region code. For North America, the region code is "0." Therefore, the company identification can be seven digits if you include the first digit, "0." Because each UCC code contains the company number, all numbers are unique.
The following are the three key UCC identification codes:
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A product (UPC and EAN-13 codes)
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A container of product (SCC-14 and EAN-14 codes)
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A transaction that contains multiple containers and/or products (SSCC-18)
24.2.1 Universal Product Code (UPC)
Each company can assign the Universal Product Code (identified as UPC in North America and EAN-13 outside of North America) to a "consumer unit" or the lowest saleable unit for a specific product. For example, a can of soda would have the UPC identification on the can because it can be sold individually. The UPC code is a fixed code that identifies one unit of a specific product.
The following graphic illustrates the structure of UPC code.
The code is made up of the following:
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A single-digit check character
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A 5-digit Product ID assigned by the company.
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A 7-digit company (or manufacturer) ID that is assigned by the UCC/EAN. For North American companies, the company ID is represented by only 6 characters, since the leading 7th digit is always 0 and can be left off the code.
Typically, a company will maintain its own product identification codes for internal use but will cross-reference the internal product identification codes to the UPC code.
24.2.2 Shipping Container Code (SCC)
Companies assign the Shipping Container Code (identified as the SCC-14 in North America and EAN-14 outside of North America) to an "intermediate pack" for a specific product. For example, cans of soda are sold in various configurations. One possible configuration is four six-packs in each case. Therefore, the case would have an intermediate pack identifier (SCC-14) on it.
The Shipping Container Code, like the UPC, is a fixed code that identifies the specific number of consumer packs of a specific product. The SCC code on the case of soda represents four consumer packs, each with six sodas or a total of 24 sodas.
The following graphic illustrates the structure of SCC-14 code:
The code is made up of the following:
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A single-digit check character
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a 5-digit Product ID assigned by the company.
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A 7-digit company (or manufacturer) ID assigned by the UCC/EAN.
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A single digit Packaging Indicator that identifies the packaging. This identifier is assigned by the company and may vary from product to product. This identifier is fixed and has the following values:
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0 indicates that the Product ID on the SCC is not the same as the product identification on the UPC codes contained within the package.
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1 - 8 indicates company-defined packaging. For example, for soda, a 1 might mean a case containing six packs and a 2 might mean a case containing 12-pack boxes.
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9 indicates that the amount of product inside the package varies from package to package even though there is the same product identification in the UPC codes of the consumer pack contained within the package.
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In the JD Edwards World system, an SCC code is equivalent to an item code for a specific unit of measure. For any item, there would be one UPC code but several SCC codes.
24.2.3 Serial Shipping Container Code (SSCC)
Serial Shipping Container Code (SSCC-18) is a unique serial number that is assigned to cartons or shipping containers including entire truck loads or shipments.
The SSCC code is a variable code that can be a hierarchical structure of SCCs and UPCs that are represented by a single SSCC. The code is a key to a database record that contains what is under that number. For example, an SSCC may be put on a pallet that has 10 cases of soda and 10 cases of juice.
The following graphic illustrates the structure of SSCC-18 code:
The code is made up of the following:
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A single digit check character
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A 9-digit serial number that identifies the shipping method that is assigned by the company
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A 7-digit company (or manufacturer) ID that is assigned by UCC/EAN.
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A single digit packaging type. This identifier is fixed and has the following values:
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0 indicates the shipping container is a case or carton.
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2 indicates that shipping container is a pallet (larger than a case).
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3 indicates the shipping container is undefined.
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4 indicates the shipping container that is used internally for intra-company use.
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5 - 9 are reserved for future use.
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24.3 Bar Code Labels
Bar codes are machine-readable symbols that are used to encode information on physical product, intermediate packages and collections of packages for shipment.
24.3.1 Bar Code Labels for UPC/EAN-13
The UPC symbology has different formats, depending on your business needs:
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UPC-A: A format that displays all 12 or 13 digits.
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UPC-E: A format that compresses the 12 or 13 digit numbers to eight by removing zeroes from the number. Although this version displays only eight digits, when it is scanned and decoded by the bar reader, the transmission includes all digits to the computer.
24.3.2 Bar Code Labels for SCC-14/EAN-14
The Shipping Container Code has different formats, depending on where you print the label and the information that you want to include. For example, you can use the ITF format if you print the bar codes on corrugated cartons. You might want to use the UPC/EAN-128 if you encode an Application Identifier (AI) prefix. An AI prefix is important when scanning multiple bar codes on a shipping label as they allow the scanner to identify what the encoded number represents.
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Interleaved 2-of-5 (ITF): This format encodes the 14 digits and is often used on corrugated cartons because it can be printed more reliably than UPC/EAN-128.
Figure 24-5 Sample Interleaved 2-of-5 (ITF) Bar Code
Description of "Figure 24-5 Sample Interleaved 2-of-5 (ITF) Bar Code"
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UPC/EAN 128: This format encodes the 14 digits of the SCC and an Application Identifier (AI) prefix.
24.3.3 Bar Code Labels for Serial Shipping Container Code (SSCC-18)
The Serial Shipping Container Code is encoded with the UPC/EAN-128 standard. This standard encodes both the 18 digits of SSCC-18 code and an Application Identifier (AI) prefix. The AI identifies the type of information that is encoded. An AI of 00 identifies the bar code as a SSCC-18.
The SSCC is the label that is affixed to the shipment, the pallet, or a container. It may be applied as the shipment is being assembled or at the dock as the shipment is being loaded for transport to the customer.
24.4 Shipping Labels
Although they can vary in size, shape, and content, shipping labels follow a specific standard, the UCC Common Label. This standard setup specific label segments and defines the type of information that is contained in each segment.
The following graphic illustrates an example of a shipping label.
The following table illustrates each segment and the information contained in each:
Figure 24-9 Segments and the Information Contained in Each
Description of "Figure 24-9 Segments and the Information Contained in Each"
24.5 EDI Transmissions
The JD Edwards World integrated system depends on accurate data flow from one process to another. You can transmit order and shipment detail information electronically between the supplier and the customer.
The following graphic illustrates the process and identifies EDI transmissions.
Figure 24-10 EDI Transmissions and Process
Description of "Figure 24-10 EDI Transmissions and Process"