Identifiers in Supply Chain Management - SKU, LPN, SSCC and more 🔎📦

#Operations_Management #Supply_Chain_Management
Table of Contents:

↩️ Go Back

A) What is the difference between SKU and LPN? 𝄃𝄂𝄂𝄀𝄁𝄃𝄂𝄂𝄃 📦

SKU (Stock Keeping Unit) and LPN (License Plate Number) are both identifiers used in inventory management and logistics, but they serve different purposes.

A.1) SKU Explained

1. SKU (Stock Keeping Unit):
   • Purpose: A SKU is a unique identifier used to track individual products within a warehouse or retail environment. It is assigned to a specific item, such as a particular model of a product, size, color, or variant.
   • Usage: SKUs are used to manage inventory, track sales, and ensure that the correct products are available for customers. Each unique product has its own SKU, allowing for detailed tracking and reporting.
   • Example: A SKU might be "ABC123-BLUE-M" for a medium-sized blue shirt of a particular brand.

More info here

A.2) LPN Explained

2. LPN (License Plate Number):
   • Purpose: An LPN is a unique identifier assigned to a unit of goods that is being moved or stored within a warehouse. It is often used in warehouse management systems to track the location and movement of pallets, containers, or other larger units of goods.
   • Usage: LPNs are used to track the movement and storage of goods within a warehouse. They help in ensuring that items can be located, picked, and shipped efficiently. Unlike SKUs, which identify specific products, LPNs identify a group or unit of items.
   • Example: An LPN might be "LPN123456" to represent a specific pallet containing 100 units of various products.

More info here

A.3) Summary SKU vs LPN

Key Differences:

• Functionality: SKU is about identifying individual products, while LPN is about identifying groups or units of products within a warehouse.
• Application: SKUs are more product-focused and used for inventory and sales tracking, whereas LPNs are more logistics-focused, helping in tracking the movement and storage of goods within a warehouse.

A.4) GUI Examples

Example 1:
SKU: SST1GP6PDSCHB
Chemical double pallets
LPNS:
00800275410128054072
00800275410128054089

Example 2:
SKU: SST1GP6PDSCHB
Chemical single pallet
LPNS:
00800275410128054089

Examples 3:

B) What is a SSCC (Serial Shipping Container Code)?

The Serial Shipping Container Code (SSCC) is a unique identifier used in logistics and supply chain management to track and trace logistics units, such as pallets, cases, or containers, throughout the supply chain. It is a critical component of the GS1 system, which is a global standard for business communication.

B.1) Key Features of the SSCC

1. Uniqueness: The SSCC is designed to be globally unique, ensuring that each logistics unit has a distinct identifier that can be used across different companies and regions without duplication.

2. Structure: The SSCC is an 18-digit number, typically encoded in a GS1-128 barcode, which can be scanned to track the unit. The structure of the SSCC is as follows:

   • Extension Digit (1 digit): Used to increase the capacity of the serial reference number.
   • GS1 Company Prefix (7-10 digits): A unique number assigned to a company by a GS1 member organization.
   • Serial Reference (6-9 digits): A number assigned by the company to uniquely identify the logistics unit.
   • Check Digit (1 digit): Calculated from the previous digits to ensure data integrity.

3. Purpose: The SSCC is primarily used to:

   • Track and trace the movement of logistics units through the supply chain.
   • Facilitate the automation of processes such as receiving, shipping, and inventory management.
   • Improve accuracy and efficiency in the supply chain by reducing the risk of errors.

4. Usage: The SSCC is attached to logistics units at the time of packing or shipping. It is scanned at various points in the supply chain, such as during shipping, receiving, and warehousing, allowing companies to monitor the movement and status of goods.

B.2) Example of an SSCC

An example of an SSCC might look like this: 0 0614141 123456789 8

• 0 - Extension digit.
• 0614141 - GS1 Company Prefix.
• 123456789 - Serial Reference.
• 8 - Check Digit.

B.3) Benefits of using SSCC

• Global Standardization: The SSCC is recognized and used internationally, allowing for seamless communication between trading partners.
• Traceability: It enhances traceability of goods throughout the supply chain, which is critical for industries like food, pharmaceuticals, and consumer goods.
• Efficiency: Automating the tracking process reduces manual errors and increases operational efficiency.

In summary, the SSCC is a vital tool in modern logistics, providing a standardized way to identify and track logistics units globally.

↩️ Go Back