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What is Product Identification? Why is It Important?

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Key Takeaways

  • Product identification systems, such as UPCs, GTINs, and SKUs, are crucial for tracking products throughout their lifecycle, ensuring efficiency in sales, inventory management, and regulatory compliance.
  • Product identifiers enhance traceability across industries, ensuring safer handling of goods (e.g., hazardous materials) and simplifying product recalls by pinpointing specific affected batches.
  • Different industries—such as manufacturing, healthcare, retail, and logistics—rely on tailored product identifiers (e.g., VINs in automotive, UDIs in healthcare) to streamline operations and maintain safety, compliance, and transparency.
  • Product identification is a prerequisite for doing business, whether you’re a manufacturer or OEM, a reseller, or an industrial operation. Because it’s a crucial part of any selling experience, it’s vital to understand what product identification is, what data it includes, how it impacts commerce, and why it’s important. This guide will help you understand the complexities of product identification and how to effectively implement it in your own business.

    What Is Product Identification?

    QR code on a smartphone screen

    Photo by Pixabay from Pexels

    A product identifier is a unique series of characters identifying a specific product, part, or other item. Without unique product identifiers, organizations couldn’t distinguish their goods from others in their databases. Product identifiers are crucial for manufacturers, suppliers, and sellers because they allow tracking and identification for sales, inventory control, and more.

    Product identifiers allow businesses to track goods throughout their lifecycles, which simplifies traceability and efficiency.

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    What Data Is Included?

    Closeup of a barcode

    Suppose you have a pallet carrying several hundred spray bottles of all-purpose household cleaner. In this case, the product identifier would be displayed on the pallet label, disclosing the following information:

    As you can see, product identifiers aren’t just for clarity or convenience. For some products, clearly identifying a product’s chemical composition also keeps shipping personnel and others safe. In the case of HazCom, federal regulations require clear labels due to the risk involved in transporting certain items.

    There are various types of product identifiers, and the specific information included in each type varies. We’ll discuss these in more detail below.

    Types of Product Identifiers

    There are several widely used examples of product identifiers, all with different protocols:

    UPC (Universal Product Code)

    UPCs are North America’s most common product identifier. They’re popular in retail for tracking inventory and speeding up checkout times.

    These are 12-digit codes consisting of 3 parts:

    • Company Prefix: The first 6-10 digits assigned to the manufacturer by GS1.
    • Item Reference: A number assigned by the manufacturer to identify a specific product.
    • Check Digit: The last digit, used to verify that the UPC is correctly composed.

    GTIN (Global Trade Item Number)

    This identifier is a globally accepted standard with 8, 12, 13, or 14 digits, known as GTIN-8, GTIN-12, GTIN-13, and GTIN-14. GTINs identify products as they go through the international supply chain as cartons, pallets, and other units.

    Each GTIN is a numerical string with four main components:

    • Indicator Digit: A number from 1-8 used to define packaging levels (only in GTIN-14). Digit 9 is for variable measure products.
    • GS 1 Company Prefix: A unique number licensed by a GS1 Member Organization, used to generate GS1 Identification Keys. In GTIN-12, a U.P.C. Company Prefix is used instead.
    • Item Reference: A number assigned by the user to identify a product, varying in length based on the GS1 Company Prefix.
    • Check Digit: The final digit, calculated to verify the correctness of the GTIN. GS1 US provides a calculator for this.

    The components and their use vary by GTIN structure (e.g., GTIN-8, GTIN-12, GTIN-13, GTIN-14), as defined in the GS1 General Specifications. For instance, GTIN-8 includes only a GS1-8 Prefix, Item Reference, and Check Digit.

    MPC (Manufacturer’s Product Code)

    A Manufacturer’s Product Code (MPC) is a unique identifier assigned by a manufacturer to distinguish individual products within its catalog. The MPC helps companies track and manage inventory, production, and distribution. It typically includes information specific to the product, such as its model number, version, or features.

    Unlike standardized codes like UPCs or GTINs, MPCs are internal codes used primarily within a company’s systems for product management, though they may also be shared with retailers or distributors for inventory purposes.

    MPN (Manufacturer Part Number)

    Manufacturer Part Numbers (MPNs) are unique alphanumeric codes assigned by manufacturers to identify specific parts or components within their product lines. MPNs help distinguish between similar products that may vary in features such as size, color, or material and are most commonly used across industries such as electronics, automotive, and machinery.

    These numbers are used in supply chains to streamline ordering, inventory management, and maintenance processes to ensure the correct part is sourced or replaced. An MPN is typically a string of letters, numbers, or a combination of both, up to 70 characters in length.

    UDI (Unique Device Identifier)

    UDIs are distinct alphanumeric codes assigned to a medical device, used to improve patient safety, traceability, and supply chain efficiency by standardizing how medical devices are recognized globally.

    They consist of two main parts:

    • Device Identifier (DI): A static portion that identifies the manufacturer and the specific version or model of the device.
    • Production Identifier (PI): A variable portion that includes details like the device’s batch number, expiration date, manufacturing date, and serial number.

    UDIs are encoded in both human-readable and machine-readable forms, like barcodes or QR codes, and are mandated by regulatory bodies such as the FDA. The system helps streamline the tracking of medical devices through the healthcare system, enabling efficient recalls, adverse event reporting, and inventory management.

    VIN (Vehicle Identification Number)

    Metalphoto VIN plate

    A VIN is a unique 17-character code used to identify individual motor vehicles, essential for tracking recalls, registrations, insurance, and theft recovery. Each VIN contains a series of letters and numbers that provide information about the vehicle, including the manufacturer, model, production year, and manufacturing plant.

    A VIN consists of three parts:

    • World Manufacturer Identifier (WMI): The first three characters identify the manufacturer and the country where the vehicle was built.
    • Vehicle Descriptor Section (VDS): The next six characters provide details about the vehicle model, body style, engine type, and other features.
    • Vehicle Identifier Section (VIS): The final eight characters which include the vehicle’s unique serial number, along with the model year and plant of manufacture. 

    HS (Harmonized System) Code

    An HS (Harmonized System) Code is an internationally standardized numerical system used to classify traded goods. Developed by the World Customs Organization (WCO), HS codes consist of six digits and help in identifying products for customs and international trade purposes. These codes are used by customs authorities to assess duties, taxes, and gather trade statistics.

    The HS code format includes:

    • First 2 digits represent the product category.
    • Next 2 digits represent the product subcategory.
    • Final 2 digits provide further classification within the subcategory.

    ISBN (International Standard Book Number)

    Person in a bookstore

    An ISBN (International Standard Book Number) is a unique numeric identifier used to identify books and other published media. ISBNs are used globally to simplify the buying, selling, cataloging, and distribution of books.

    The ISBN is either 10 or 13 digits in length, depending on when it was issued. Since 2007, all new ISBNs are 13 digits, consisting of 5 components:

    • Prefix (EAN or Bookland code): Typically “978” or “979” for books.
    • Group Identifier: Identifies the country or language area.
    • Publisher Code: Identifies the publisher of the book.
    • Title Identifier: Identifies the specific edition or format of a book.
    • Check Digit: A number calculated to validate the accuracy of the ISBN.

    Each addition and variation of a book (e.g., hardcover, paperback) has its own ISBN, allowing publishers, booksellers, libraries, and readers to quickly and accurately identify specific book titles, editions, and formats.

    EAN (European Article Number)

    European Article Number (EAN) is a globally recognized barcode standard used to identify retail products. EANs are part of the broader GS1 system of standards and is used primarily for tracking and managing product sales in stores, warehouses, and online. They’re essential for automating product identification at the point of sale and in supply chains.

    The most common format is the EAN-13, which consists of 13 digits. There is also an EAN-8 format used for smaller items, which contains 8 digits. EANs consist of 4 parts:

    • Country Code: The first 2 or 3 digits represent the country where the manufacturer is registered (not necessarily where the product is made).
    • Manufacturer Code: The next digits identify the manufacturer or company.
    • Product Code: These digits are assigned by the manufacturer to specify the product.
    • Check Digit: The final digit ensures the code is correctly composed.

    The EAN is compatible with other barcode systems, such as the Universal Product Code (UPC) used in North America and is widely used for product identification across global markets.

    SKU (Stock Keeping Unit)

    Scanning a SKU in a warehouse

    Alphanumeric codes assigned to products in retail or inventory management, SKUs help businesses track and manage stock efficiently. While they’re not standardized, SKUs are used to distinguish between similar products with variations, such as different colors or sizes of the same item.

    Unlike universal identifiers like UPCs or EANs, SKUs are specific to a company and are used for internal inventory management, sales tracking, and order fulfillment. SKUs vary in length, but on average, most SKUs range from 8 to 12 characters. They can be structured to suit a company’s needs, including information such as product category, brand, model, and warehouse location, as well as attributes like size, color, style, and other features.

    The table below shows each type of product identifier, common use cases, and the format for each type.

    Product IdentifierInternal or External UsageUse Case(s)LengthFormat
    UPC (Universal Product Code)ExternalRetail inventory tracking
    Retail checkout
    12 digits3 parts:
    Company Prefix
    Item Reference
    Check Digit
    GTIN (Global Trade Item Number)ExternalIdentifying cartons, pallets, and other units as they move through the supply chain8, 12, 13, or 14 digits4 parts:
    Indicator Digit
    GS1 Company Prefix
    Item Reference
    Check Digit
    MPC (Manufacturer’s Product Code)InternalInternal catalog management
    Product data management
    Not standardizedNot standardized
    MPN (Manufacturer Part Number)ExternalIdentifying components and parts in procurement, inventory management, and maintenanceUp to 70 charactersNot standardized
    UDI (Unique Device Identifier)ExternalTracking medical devices
    Ensuring regulatory compliance
    Facilitating recalls
    Up to 25 alphanumeric characters2 parts:
    Device Identifier
    Production Identifier
    VIN (Vehicle Identification Number)ExternalTracking vehicles throughout their lifecycle
    Detecting fraud
    Managing recalls
    17 alphanumeric characters3 parts:
    World Manufacturer Identifier (WMI): First 3 characters
    Vehicle Descriptor Section (VDS): Next 6 characters
    Vehicle Identifier Section (VIS): Final 8 characters
    HS (Harmonized System) CodeExternalClassifying products for international trade
    Ensuring customs compliance
    Worldwide standard: 6 digits
    Countries may add additional digits for further specificity for a total length of 6-10 digits  
    3 parts:
    Product category: First 2 digits
    Product subcategory: Next 2 digits
    Further classification within the subcategory: Final 2 digits  
    ISBN (International Standard Book Number)ExternalTracking books globally10-13 digits 13 digits for all ISBNs issued since 20075 parts:
    Prefix (EAN or Bookland code)
    Group Identifier
    Publisher Code
    Title Identifier
    Check Digit
    EAN (European Article Number)ExternalIdentifying retail products (European version of the UPC)8 or 13 digits (typically 13 digits)4 parts:
    Country Code
    Manufacturer Code
    Product Code
    Check Digit
    SKU (Stock Keeping Unit)InternalTracking and managing stock in retail and inventory management applicationsNot standardized
    Typically 8-12 alphanumeric characters
    Not standardized

    Thanks to these various standards, there are many ways for businesses to organize their products. For instance, ISBNs simplify cataloging books in various systems, whether a library needs to manage its inventory or a bookstore is taking in new stock. Every book identified by that unique ISBN is identical, from its title to its content.

    Industry-Specific Applications for Product Identification

    Businesses in nearly all industries rely on product identification, including:

    Manufacturing

    Manufacturers rely on product identification for quality control. Unique identifiers like barcodes, QR codes, or RFID tags track parts from raw material to finished product, ensuring that the right components are available and meet industry standards.

    In quality control, product identification helps detect defects in real time, ensuring compliance with safety and performance standards. It also improves supply chain visibility, allowing manufacturers to monitor parts, reduce delays, and identify bottlenecks.

    In the event of a recall or safety issue, product identification enables quick traceability, pinpointing the source of the problem and minimizing the impact. It also supports regulatory compliance by providing an accurate record of materials and processes, helping manufacturers meet industry requirements and avoid penalties.

    Retail

    Retail point-of-sale

    All consumers have seen product identification in action at grocery stores and clothing shops. Retailers use Universal Product Codes (UPCs) and barcodes to distinguish their products.

    Cashiers scan these items at checkout, automatically updating the store’s stock levels. eCommerce sellers also use this information to support online search, shipping, and cross-platform inventory data.

    Healthcare

    The healthcare industry relies on product identification to improve the traceability, safety, and regulatory compliance of pharmaceuticals, medical devices, and supplies. Product identification is crucial during product recalls and investigations into adverse events, allowing healthcare providers to quickly identify affected units and take appropriate action to ensure patient safety.

    UDIs provide a standardized method for identifying devices, facilitating more effective monitoring and reporting processes. Product identification systems such as UDI also play an important role in promoting interoperability among various healthcare systems and ensuring regulatory compliance.

    For example, the U.S. Food and Drug Administration (FDA) has mandated the use of UDIs for medical devices sold in the United States, establishing a framework to ensure that manufacturers adhere to strict labeling and reporting requirements.

    Automotive

    Automotive assembly line

    Auto manufacturers use product identification, such as Vehicle Identification Numbers (VINs), to track parts and vehicles throughout the supply chain. Aftermarket sellers also depend on proper identification to ensure correct parts are sold.

    A VIN is a unique 17-character code that provides key details about a vehicle’s make, model, engine, year, and plant location. It helps track vehicles during production and allows consumers to verify a vehicle’s history, such as accident involvement, salvage status, or recalls.

    VINs are also essential for regulatory compliance, required for vehicle registration, insurance, and emissions control. In the U.S., the National Highway Traffic Safety Administration (NHTSA) enforces specific VIN standards to ensure consistency for law enforcement, insurance companies, and vehicle owners.

    Food and Beverage

    Unique product identifiers, such as barcodes and batch numbers, enable food producers to trace products through the supply chain, ensuring safety and quality control. Product identification is also required to meet food equipment standards set forth by NSF (previously known as the National Safety Foundation, now the Public Health and Safety Organization), GFSI (Global Food Safety Initiative), and the Food Safety Modernization Act (FSMA).

    Product ID systems also help retailers manage perishable goods by tracking expiration dates, improving stock rotation, and reducing waste. Accurate tracking ensures that products sold are within their shelf life, meeting shelf-life regulations.

    Additionally, product identification supports compliance with labeling regulations, ensuring ingredients, allergens, and nutritional information are clearly disclosed. It also plays a role in maintaining sustainability and HACCP standards, as companies can monitor critical control points in production and ensure products meet environmental and ethical guidelines.

    Logistics and Supply Chain

    Chemical storage with hazard communication and product identification

    Product identification systems, including GTINs, EANs, and HS (Harmonized System) codes, are used to track goods as they move through the supply chain, from manufacturers to warehouses and retailers or consumers. Product identification systems help optimize warehouse storage and stock levels by making it possible to track inventory across multiple locations.

    GTINs streamline logistics by enhancing product visibility, reducing lead times, and minimizing manual tracking errors. HS codes (on GHS labels) are essential for classifying goods in international trade, ensuring compliance with customs regulations and regional import standards, reducing customs delays and enabling faster transit times.

    Product identification also supports global traceability, aiding compliance with sustainability and product safety regulations while preventing counterfeit goods from entering the supply chain.

    Aerospace and Defense

    In the aerospace and defense industries, product identification is used to track components from production through installation and maintenance, including maintenance scheduling and documenting repairs.

    Product identification systems ensure compliance with regulations from the FAA (Federal Aviation Administration), EASA (European Union Aviation Safety Agency), and other regulatory authorities by providing traceable records of part origin, installation dates, and maintenance history.

    In defense contracting, product identifiers are used to comply with the U.S. military’s global UID (Unique Identifier) asset tracking program and meet specific military standards such as MIL-STD-130 and MIL-DTL-150-24F. Defense contractors must also comply with regulations for components and systems, ensuring that parts meet stringent performance, reliability, and safety requirements.

    Utilities

    Natural gas pipeline in the utilities sector

    In the utilities sector (electricity, gas, water, and telecommunications), product identification plays a critical role in ensuring the effective operation, maintenance, and management of assets and infrastructure. For instance, utilities use product IDs such as MPNs to track critical infrastructure such as transformers, meters, pipelines and valves, and turbines, which helps to manage the equipment lifecycle and ensure timely repairs, upgrades, and replacements.

    Utilities also rely on standardized product identification, such as MPNs and GTINs, to procure and replace essential parts for their infrastructure, ensuring that the correct parts are sourced for equipment like power grids, water pumps, or gas meters, reducing downtime.

    Utilities are heavily regulated, and product identification plays a key role in ensuring compliance with environmental, safety, and operational regulations. For instance, equipment like gas meters, transformers, and pipelines are tracked with unique identifiers to meet safety standards. Product identifiers also provide an audit trail for equipment and materials, which is critical for ensuring compliance with regulations and standards, such as safety inspection requirements.

    Electronics and Technology

    Manufacturers and repair services rely on MPNs to identify specific electronic components, such as chips, circuit boards, and cables, ensuring compatibility and availability.

    Product identifiers are also used to manage warranty claims for electronics, enabling manufacturers to track when and where a product was sold and whether it qualifies for repairs or replacements, and to prevent counterfeiting of high-end products. 

    Books and Publishing

    ISBNs are crucial for tracking, selling, and distributing books in physical stores, online marketplaces, and libraries worldwide. Publishers use unique ISBNs for each version of a book (e.g., hardcover, paperback, ebook), ensuring clear cataloging and sales tracking across multiple channels.

    The table below highlights the industries mentioned above, example use cases for product identification within each industry, the common identifiers used, and key benefits:

    IndustryCommon IdentifiersKey BenefitsExample Use CasesChallenges Addressed
    ManufacturingMPN
    GTIN
    Serial Number
    Ensures quality control
    Improves traceability
    Enhances compliance with industry regulations
    Tracking components from raw materials to finished products
    Managing product recalls
    Ensuring traceability for recalls
    Managing supply chain complexity
    RetailUPC
    SKU
    Barcode
    Facilitates inventory management
    Speeds up checkout
    Enables cross-platform delivery tracking
    Scanning UPCs at checkout to update stock levels automatically
    Managing cross-platform inventory
    Managing large inventories
    Reducing stockouts and overstocking
    HealthcareGTIN
    NDC (National Drug Code)
    UDI (Unique Device Identifier)
    Ensures safety
    Reduces medical errors
    Facilitates product recalls and traceability
    Tracking medical devices with UDI to manage recalls
    Using GTINs for drug traceability
    Preventing counterfeit drugs and medical errors
    Ensuring safety in medical devices
    AutomotiveVIN
    MPN
    Serial Number
    Tracks parts and vehicles
    Helps detect fraud
    Ensures correct replacement parts are used
    Supports regulatory compliance
    Using VINs to track vehicles throughout their lifecycle
    Ensuring correct parts are sourced for repairs
    Detecting fraud and theft
    Sourcing the correct parts for repairs
    Maintaining regulatory compliance
    Food & BeverageBarcode
    Batch Number
    GTIN
    Ensures food safety
    Improves stock rotation
    Reduces food waste
    Supports regulatory compliance
    Tracking expiration dates of perishable goods
    Complying with GS1 standards for food safety
    Managing stock rotation of perishable goods
    Ensuring compliance with food safety regulations
    Logistics & Supply ChainGTIN
    EAN
    HS Code
    Optimizes inventory management
    Ensures smooth international trade
    Tracks products throughout the supply chain
    Tracking shipments with GTINs
    Using EANs for customs compliance in international trade
    Tracking products across borders
    Enabling supply chain traceability
    Complying with customs and trade regulations
    Aerospace & DefenseMPN
    Serial Number
    Part Number
    Ensures compliance with safety regulations
    Improves component traceability
    Supports maintenance scheduling
    Tracking aircraft components for maintenance
    Complying with FAA and EASA regulations
    Complying with stringent safety standards
    Tracking components through long lifecycles
    UtilitiesMPN
    GTIN
    Serial Number
    Improves asset tracking
    Ensures timely repairs
    Facilitates regulatory compliance
    Tracking transformers, meters, and pipelines for maintenance
    Managing energy grid assets
    Managing infrastructure maintenance
    Ensuring compliance with environmental and safety standards
    Electronics & TechnologyMPN
    Serial Number
    Barcode
    Prevents counterfeit products
    Ensures warranty claims
    Maintains product compatibility
    Tracking circuit boards and chips for warranty claims
    Preventing counterfeit electronics
    Preventing counterfeit components
    Ensuring compatibility in repairs and replacements
    Books & PublishingISBNTracks different book formats
    Supports accurate cataloging
    Streamlines distribution
    Using ISBNs to manage book sales and cataloging in libraries and online platformsDifferentiating book formats
    Managing large-scale distribution and cataloging

    What It Means for Your Business

    Shipping boxes with barcodes and QR code labels

    Photo by Kampus Production from Pexels

    Product identifiers are crucial in order to manufacture, store, ship, and stock products. Without a clear product identifier, there’s no way for manufacturers to reach their customer base.

    For example, if you walk through the produce section at your local grocery store, you’ll see barcodes and product numbers on fruits and vegetables. Even an apple needs to have a product identifier in order to make it from the farmer to the consumer.

    Product identifiers help logistics professionals manage the flow of goods through our complex, globally intertwined economies (via traceability). If you’ve ever wondered how thousands of tons of bananas can make it from South America or the Philippines to the produce sections of stores across America, product identifiers are why the system works so seamlessly.

    Benefits of Product Identification

    Box with product identification labels and produce in the back of a vehicle

    Photo by Kampus Production from Pexels

    Product identifiers are essential for many reasons. They don’t just help you stay organized or manage your inventories, as important as it is to do both. Product identifiers have many benefits, from improved safety to speedy disaster response.

    Improved Accuracy in Shipping & Logistics

    Product identifiers minimize the potential for errors during picking and packing processes, ensuring that items are matched correctly with customer orders. Reducing shipping inaccuracies and mislabeling helps to improve customer satisfaction and mitigates costly returns and reshipments. 

    Streamlined Order Fulfillment

    Conveyor belt with shipping boxes

    Order fulfillment is more efficient with a comprehensive product identification system. By automating processes that rely on clear identifiers, organizations can expedite order processing times significantly. Automated systems reduce the reliance on manual data entry, reducing human error and ensuring accurate order fulfillment.

    Streamlined Procurement & Ordering

    Standardized identifiers like SKUs and MPNs enable purchasing departments to easily identify products across different suppliers. This increased clarity facilitates faster decision-making when sourcing materials or products, as buyers can compare specifications and prices more effectively. Consistent product identification systems also reduce the likelihood of incorrect orders being placed, saving time and money while fostering better relationships with suppliers.

    Improved Inventory Management & Control

    Scanning product identification labels with a handheld barcode scanner

    Product identifiers enable businesses to track stock levels in real time, ensuring that they have the right amount of product on hand. Improved visibility into inventory data enables companies to better predict demand trends and adjust their stock accordingly, which helps to prevent stockouts and overstocking. Accurate inventory tracking also allows for more effective cycle counting and auditing processes.

    Product Authenticity & Counterfeit Prevention

    Product identification plays a critical role in ensuring authenticity and preventing fraud in a world where counterfeit products are an ever-increasing concern. Traceability is essential for consumers looking to confirm that they’re purchasing genuine items, and product identifiers like UPCs, MPNs, and GTINs allow businesses to establish a verified link between products and their manufacturers. By scanning product identifiers at various points in the supply chain, companies can verify product origins and legitimacy.

    Regulatory Compliance

    Using regulatory compliance software on a laptop

    In many industries, compliance with industry and regional regulations is essential for maintaining operational standards and ensuring consumer safety. Regulatory bodies often require detailed record-keeping of products, and product identifiers help businesses meet these regulatory requirements by providing traceability throughout the supply chain.

    Standardized product identification systems also simplify reporting requirements, allowing businesses to easily furnish data related to their inventory and sales patterns. For example, GTINs enable companies to easily track products from production to sale, allowing them to comply with industry regulations regarding product recalls or safety reporting.

    Facilitating Global Trade

    Product identification systems play a pivotal role in simplifying global trade operations, allowing companies to streamline their export and import processes. As businesses extend beyond local markets, they often encounter diverse regulations, languages, and logistical challenges.

    Utilizing standard product identifiers such as GTINs and UPCs allows for seamless communication across international borders. These identifiers provide a universal language that helps businesses navigate complex supply chains and ensure compliance with varying customs requirements.

    Improved HAZMAT Safety

    Person in a HAZMAT suit handling hazardous materials

    Hazardous materials left improperly stored or contained can cause catastrophic harm. Clear, standardized labeling is a must for proper HAZMAT handling, storage, and transportation.

    Product identifiers identify the nature of the substance, its risks, and safety measures the team needs to take to prevent accidents. For example, adding HAZMAT warning labels to chemical drums tells first responders what they’re dealing with in the event of an emergency, potentially saving lives.

    Precise Product Recalls

    As a business owner, you must remove faulty or dangerous goods from the market as soon as possible. Without product identifiers, recalls would be nearly impossible, requiring businesses to recall entire products at an enormous expense.

    Fortunately, standardized product identification allows businesses to only recall affected batches or products, protecting consumers while reducing financial losses.

    Faster Disaster Response

    Beach cleanup disaster response

    Product identification identifies responsible parties in the event something goes wrong. It also enables precise loss calculations in the event of a disaster. For example, when the crew of the cargo ship Felicity Ace abandoned the vessel at sea, product identifiers helped everyone know exactly what was at stake.

    These identifiers also quickly pointed to the possible cause of the fire: lithium batteries used in the electric cars onboard. This was important not just for the manufacturers but also for the shipping company, insurance professionals, stakeholders, and other parties. Accounting for every automobile on the ship’s manifest made it much easier to accurately calculate losses from the incident.

    Implementing Product Identification in Your Business

    Grocery store shelves

    Photo by Kenny Eliason from Unsplash

    Product identification is incredibly beneficial, but implementing it can seem daunting. Follow these step-by-step tips to add product identification to your existing workflows.

    Choose the Right Identifier Type

    First, decide which identifier type is the best fit for your business. For example, businesses based in North America should use UPCs, while European companies might go with EANs.

    ISBN is the standard for books, while SKUs are very popular for physical products. Logistics companies may benefit from GTINs, while enterprise manufacturers might stick with MPNs for internal tracking purposes.

    Thankfully, there are plenty of product identifiers to choose from. Understand your business’s needs to select the best possible option.

    However, keep growth in mind. If you think you may want to expand into the global market in the future, you may want to select an international identifier over a domestic one to reduce the hassle of switching later.

    Register With Relevant Entities

    GS1 screenshot

    Screenshot via GS1

    Depending on the product identifier you choose, you will need to register with the appropriate entity. These institutions track and standardize product identifiers across businesses and countries. Registration ensures that other companies recognize your products and can help with meeting regulatory or trade requirements in other countries.

    Consider registering with:

    • GS1: This organization issues GTINs, UPCs, and EANs. Registering will allow you to generate internationally recognized identifiers for each product.
    • ISBN: Visit ISBN.org to request an ISBN for a publication. Keep in mind that every country has its own ISBN agency.

    This step is not optional; you must register with these organizations to generate recognized product identifiers.

    Assign Identifiers to Products

    When you register with these entities, you’ll get access to tools for generating identifiers for your products. With this tool, you can now assign identifiers to each product in your catalog.

    However, this step can be time-consuming if you have a lot of products. Create a spreadsheet to track product names, locations, attributes, and product identifiers to speed up the process.

    Stay Compliant

    From food service to hospitals to universities, all organizations must follow regulations. Every industry is different, however, so it’s up to your team to consider product identification regulatory standards.

    For example, HAZMAT materials have very different requirements compared to medicine. Work with your legal team to ensure you select the right product identifiers for your industry. These experts will also advise you on any required elements, including design and placement, that you should consider before ordering product ID tags.

    Pick a Product Identification Technology

    Product identification tags and labels

    Now that you have product identifiers assigned to your inventory, you now need a way to track these codes. Rely on product identification technology to help your team quickly organize, identify, and track goods in less time.

    Many organizations use technology such as:

    • Barcodes: These product identifiers are machine-readable black and white lines containing a product’s UPC, GTIN, or SKU. Employees scan barcodes to convert information from the tag into digitized data in a tracking system. Barcodes are low-cost, easy to implement, and compatible with most systems.
    • QR codes: Quick Response codes are two-dimensional barcodes. They work like barcodes, although they don’t require special scanners; employees can scan them with a smartphone. QR codes also contain more data than barcodes.
    • RFID tags: Radio Frequency Identification tags transmit data to a reader using radio waves. There’s no need for direct line-of-sight to transmit information, thanks to the tag’s chip and antenna. The downside is that RFID tags are more expensive than barcodes.
    • NFC tags: Near Field Communication tags are like RFID, but have a shorter range. They’re common in applications such as mobile payments or tap-to-pay.

    Many of these technologies will work with your existing inventory tracking systems. For example, barcodes are very common across all industries. Most software solutions offer barcode scanning add-on modules to quickly bring barcode data into your digital workflows.

    However, if your organization doesn’t already use some type of product or inventory tool, now is the time to set it up. Go with flexible product tracking software that integrates product ID tracking with helpful features such as automation, drag-and-drop interfaces, and custom notifications.

    Consider Label Design and Placement

    After choosing your product identification technology, it’s important to consider how you will design and place labels on your products. Proper design and placement are a must for readability, but they’re also important for instilling brand trust, especially if you cater to end consumers.

    The goal is to balance durability, functionality, and brand consistency. Metalphoto of Cincinnati (MPC) offers high-quality, durable labels and tags that survive in even the harshest environments.

    Not only do our tags resist fading and scratching, but they’re also built to your exacting brand standards. Enjoy the benefits of standardized, brand-safe product identification with MPC’s tough-built tags.

    Implement Quality Control Measures

    Setting up product identification requires upfront effort, but it’s well worth the payoff. However, this isn’t a one-and-done process.

    Product identification requires ongoing quality control. For example, you have to ensure that every product receives a unique identifier and that your organization doesn’t accidentally reuse identifiers.

    It’s also crucial to have your team periodically review label design and placement, especially on products like durable medical equipment or manufacturing machinery. Standards change and identifiers can become obsolete with time, so be sure to implement regular check-ins and follow-ups to ensure long-term quality.

    QR codes in a grid

    Photo by Mitya Ivanov from Unsplash

    Product identification technology is a must-have for running a safe, reputable business. However, technology is always changing, and it’s important to keep on top of changes in the product identification space. These emerging trends will have a tremendous impact on product identification in the coming years.

    AI and Machine Learning

    AI and machine learning help organizations track more data and draw better conclusions in less time. These technologies are already automating tasks like inventory management, improving product tracking, and predicting demand.

    Experts predict these technologies will only continue to improve over time, taking on increasingly complex tasks and freeing up human employees to focus on other duties. It’s crucial for organizations to experiment with this technology today, not only to enjoy the benefits of automation but also to prepare for its inevitable expansion in the coming years.

    Blockchain

    Blockchain is a popular trend in the world of cryptocurrency, but this verification technology offers a lot of promise for product identification. Blockchain creates a secure, decentralized source of information for tracking products from their origin to destination.

    This technology allows for unparalleled traceability, ensuring organizations get exactly what they request. In a world where consumer trust is declining, blockchain gives organizations a new avenue for boosting consumer confidence.

    IoT Labels

    Experts also predict that product identification labels and tags will transform in the near future. For example, some organizations are trialing interactive labels with digital links, augmented reality (AR), and other helpful tools via the Internet of Things (IoT).

    The combination of labels and advanced sensors will give organizations more real-time data about their products without any delays. This setup will make it much easier to monitor temperature changes, potential tampering, and product age.

    Product Identification Is Critical

    Whatever labeling method you choose and whatever industry you do business in, clear and unique product identifiers are a key tool for selling products. Product identification is essential to staying organized, complying with regulations, and offering a high-quality customer experience.

    However, there’s still the issue of bridging the gap between physical products and digital information. One of the best ways to put product identification to work for you is to deploy durable Metalphoto product identification labels and tags.

    Metalphoto® labels are a tried-and-true product identification solution. The image is sealed below the surface of the label, creating an impenetrable barrier to sunlight, water, salt, dirt, chemicals, solvents, and temperatures up to 650°F.

    These characteristics give Metalphoto labels an expected outdoor life of over 20 years and make Metalphoto a preferred material for many military standards and aerospace applications.

    Request your free MPC tag and label sample kit today to test our labels in your environment.

    Frequently Asked Questions

    Questions about the article? Let us help!

    Our sales engineers are experts in automatic asset tracking, tagging and identification,a nd can answer all your questions. Get in touch now.

    Lets Talk ›

    Create The Ideal Solution For Your Product Identification Needs

    If you’re having trouble finding the ideal identification solution for your project or application, build it with Metalphoto of Cincinnati. Talk with our experienced sales engineers today.
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