GS1 Traceability standards in Transport and Logistics

The transport and logistics industry is one of the biggest industries in the world contributing to about 12% of the global GDP. The industry is estimated to be USD 9.1 Trillion in 2022 and is expected to reach USD 12.31 Trillion by 2027, growing at a CAGR of 6.23% according to Research and Markets.

This industry facilitates the trade entrepreneurial activities between two or more parties by means of transporting, storing and delivering goods through either B2B, B2C or C2C supply chain networks. At the present time, logistics companies implement cargo transportation services by land, air and water while adapting to the changing nature of the economic patterns and digitization.

With these supply chain networks, it’s important for the origin of the products beings transported to be tracked. This is where the concept of logistics traceability comes in.

Logistics traceability according to American intralogistics firm Interlake Mecalux refers to ‘’the possibility of identifying the origin and different stages through which a product passes throughout the entire production process, as well as its subsequent logistical distribution until it reaches the end consumer.’’

It comprises a set of procedures that make it possible to know the location of a product in the supply chain at all times. It also traces the product’s route and knows in advance which way it will head. It involves gathering, storing, and reporting detailed information about every important event throughout supply and production. That information can then be used in many different ways to improve operations or to resolve seemingly unrelated challenges.

In Transport and Logistics, GS1 standards give much better visibility of goods throughout the supply chain, including being able to track every stage and trace shipments back to their origin. There is also much better security throughout every step of the process, which guards against theft and, in some areas, can also help with regulatory compliance.

‘’The objective of the GS1 Global Traceability Standard (GTS) is to assist organizations and industries in the design and implementation of traceability systems based on the GS1 system of standards. At a strategic level, this standard aims to provide key insights and knowledge for organizations or industries that are developing long-term traceability goals.’’ the company says.

The Serial Shipping Container Code (SSCC) is the GS1 ID Key used to identify individual logistic units. A logistic unit can be any combination of units put together in a carton, in a case, on a pallet or on a truck, where the specific unit load needs to be managed through the supply chain. The SSCC enables a unit to be tracked individually, providing benefits for order and delivery tracking and automated goods-receiving. The Global Returnable Asset Identifier (GRAI) is used to identify returnable assets such as re-usable transport equipment like trays, crates, pallets or beer kegs that are used and then returned to be used again. The Global Individual Asset Identifier (GIAI) is used to identify fixed assets of any value within a company that need to be identified uniquely, for the transportation purposes this can include a truck, a trailer, a Unit Load Device (ULD), a container, a rail car, and so forth. There is also a Global Shipment Identification Number (GSIN), a number assigned by a seller (sender) of the goods. GSIN provides a globally unique number that identifies a logical grouping of physical units travelling under one dispatch advice and/or one bill of lading as part of a specific seller/buyer relationship.

Another GS1 standard is the Global Identification Number for Consignment (GINC) which identifies a logical grouping of goods (one or more physical entities) that have been consigned to a freight forwarder or carrier and are intended to be transported as a whole.

Traceability in logistics helps to identify critical points along the supply chain to resolve incidents and boost productivity.