According to GS1 UK, retailers using Global Location Numbers (GLNs) alongside RFID have increased inventory accuracy from an average of 63% to 95%. Modern supply chains rely on clear and accurate location details, and GLNs provide this by giving each business location, physical or online, a standard code.

GLNs clarify where items come from, where they should be delivered, and where they are stored. This guide explains what GLNs are, how they work, and how businesses of any size can use them to improve accuracy, boost efficiency, and build stronger connections with global partners.

What is the Global Location Number (GLN)?

A Global Location Number (GLN) is a unique 13-digit identification number for business locations and entities. It acts as a digital address that helps computers accurately identify specific places within your business operations.

Each GLN follows a standardized structure:

  • Company prefix (assigned by GS1 based on your membership)
  • Location reference (assigned by your company)
  • Check digit (mathematically calculated to verify accuracy)

Additionally, standardization ensures that every location has a different GLN, making your supply chain clearer and more organized.

The GLN code system was created and is maintained by GS1, the same organization that manages the UPC and EAN barcodes you see on products in stores. Just as each product has its unique barcode (GTIN), each physical or logical location has its unique GLN.

This precise identification system helps businesses keep track of:

  • Physical locations (warehouses, storage rooms, delivery docks)
  • Digital locations (where electronic documents are stored)
  • Legal entities (your company headquarters or branches)
  • Functional entities (specific departments or divisions)

Where are Global Location Numbers (GLNs) used?

Global location numbers are used across many industries and for various purposes. This is where the versatility of the system comes in. It can be applied to virtually any business with physical or logical locations that need tracking, such as:

1. Supply Chain Management

  • Track Products: GLNs follow products across warehouses and transit points, reducing delays and loss. For example, Walmart could save $8.35 billion annually by using RFID, which includes location tracking.

  • Manage Locations: GLNs identify storage, delivery, and handling sites across the supply chain. This improves coordination between suppliers, warehouses, and retailers.

  • Automate Processes: GLNs link locations to digital systems for automatic shipping and receiving. This reduces manual errors and speeds up operations.

2. Healthcare

  • Identify Departments: GLNs label hospital departments like labs and wards, making navigation and communication easier. For example, the NHS improved logistics across 22 trusts by adopting location identifiers.

  • Track Medical Supplies: They help hospitals monitor stock levels and usage of equipment. This reduces shortages and waste.

  • Manage Patient Transfers: GLNs record patient movement between departments. This supports better care continuity and record accuracy.

3. Retail

  • Manage Locations: GLNs track the movement of goods between stores and warehouses.

  • Organize Shelving: Assigning GLNs to store sections helps staff find and restock items faster. For example, Best Buy uses GLNs to organize its warehouses and improve the stocking process in its retail stores.

  • Track Movement: Retailers use GLNs to monitor inter-branch transfers and avoid overstocking.

4. Food Industry

  • Trace Products: GLNs help trace items from farm to shelf, supporting fast recalls.

  • Manage Distribution: Cold storage and delivery trucks are assigned GLNs for better routing.

  • Support Compliance: GLNs create traceable audit trails that support food safety standards.

5. Manufacturing

  • Track Materials: GLNs trace components throughout production, helping reduce mix-ups. For example, General Motors uses GLNs to track parts in real time, ensuring efficiency and accuracy in vehicle production lines.

  • Identify Production Sites: Each factory, line, or station is assigned a GLN for clarity.

  • Manage Assembly Stations: GLNs let manufacturers monitor and optimize station performance.

What are the Benefits of Implementing GLNs in Business?

1. Improved Accuracy

When every location has its own GLN code, there's significantly less chance of sending items to the wrong place. Think of it as giving each location a unique digital fingerprint that cannot be confused with any other. This precision reduces costly shipping mistakes, improves delivery reliability, and directly enhances customer satisfaction by ensuring products arrive exactly where they should.

2. Better Efficiency

GLNs speed up operations by making finding and tracking locations in your business systems easier. This becomes especially important when processing large orders or managing complex inventory systems. For example, several GS1 implementation studies in the healthcare industry have reported processing time reductions of up to 70%.

3. Enhanced Traceability

If there's a problem with a product, Global location numbers help you quickly trace where it came from or where it went. This is especially important for recalls or quality issues.

4. Easier Communication

When business partners use GLNs, everyone speaks the same "language" when referring to locations. This reduces confusion and helps systems work together better.

5. Cost Savings

Using GLNs can cut operational costs by reducing errors in shipping, receiving, and inventory. A GS1 US study showed a 66% drop in rebate and chargeback errors after GLN adoption. Bernhoven Hospital saved over $25,000 in a year with a 72% drop in waste and saw ROI in just 14 months.

6. Regulatory Compliance

In some industries, like healthcare and food, tracking location information is required by law. Global location numbers provide a standardized way to meet these requirements.

How to Implement Global Location Numbers (GLNs)

Step 1: Join GS1

To get started with GLNs, you'll need to become a member of GS1, the organization that manages the GLN system. Visit the GS1 US website to apply for membership. The application process requires company information and annual revenue figures to determine your appropriate membership level and fees.

Step 2: Identify Your Locations

Make a clear list of all your business's physical and digital places that need a GLN. This is like mapping out your whole business. Be specific, give a GLN to every place that works on its own within your operations.

This includes:

  • Your headquarters and administrative offices
  • Warehouses, distribution centers, and specific storage areas
  • Individual shipping and receiving docks (each dock should have its own GLN)
  • Retail store locations and departments within stores
  • Department locations within buildings (e.g., accounting, purchasing)
  • Virtual locations like EDI mailboxes or digital document exchanges

Step 3: Assign GLNs

Once you're a GS1 member, you'll receive a company prefix that forms the first part of your GLNs. This prefix is unique to your organization globally. Using this prefix, you then create unique GLNs for each location by adding a location reference number and a mathematically calculated check digit.

Step 4: Create a GLN Database

Set up a system to store and manage your GLNs. This is where proper data management comes in - you need a reliable system that all authorized personnel can access.

Your database should include:

  • The GLN for each location
  • Complete physical address information
  • Contact details for location managers
  • Function of the location (warehouse, store, etc.)
  • Date the GLN was assigned
  • Any hierarchy relationships between locations

This can be as simple as a spreadsheet for small businesses or as sophisticated as dedicated asset management software for larger enterprises. Many ERP and inventory management systems have built-in GLN functionality.

Step 5: Update Your Business Systems

Configure your inventory, ordering, and shipping systems to use GLNs. This might require software updates or changes to your existing processes.

Step 6: Train Your Team

Ensure everyone who needs to work with GLNs understands what they are and how to use them correctly. This includes warehouse staff, IT personnel, and management.

Step 7: Inform Your Business Partners

Let your suppliers, customers, and other business partners know you're implementing GLNs. If they also use GLNs, establish how you'll share this information.

Step 8: Monitor and Maintain

Regularly review your GLN system to make sure it's working properly. Update your database when locations change, and create new GLNs as needed.

What are the Common Challenges in GLN Implementation?

Using Global Location Numbers (GLNs) can make your business more organized, efficient, and accurate. But putting GLNs in place isn't always easy. Below are some common problems businesses face and simple ways to deal with them:

1. Technical Integration

Updating older business systems to support GLNs can be complex, especially if you're working with outdated software or limited in-house technical skills. In such cases, bringing in IT professionals familiar with GS1 standards can help streamline integration and reduce implementation errors.

2. Initial Cost

Joining GS1 and upgrading your systems may require a noticeable upfront investment, which can feel like a strain for smaller businesses. To manage this, consider a phased rollout that spreads costs over time while still allowing you to start benefiting from GLNs early on.

3. Employee Resistance

New systems and processes can often meet with hesitation from employees who are used to existing workflows. Addressing this through clear, role-specific training and highlighting how GLNs make their tasks easier can reduce resistance and improve adoption rates.

4. Data Management

GLNs rely on clean, up-to-date information, and keeping that data accurate as your business evolves takes effort. Assigning a dedicated team or person to manage GLN records and perform routine checks ensures the system remains reliable over time.

5. Partner Adoption

Some of your business partners might not yet be using GLNs, which can limit the efficiency gains you're aiming for. Encouraging their adoption by showcasing how GLNs improve supply chain visibility and reduce manual errors can help bring more partners on board.

Implementing Global Location Numbers (GLNs) in business operations can improve accuracy, efficiency, and communication significantly. While there are challenges to getting started, the benefits make GLNs worth considering for businesses of all sizes. By following the steps outlined in this guide, you can successfully implement GLNs and position your business for better supply chain management and operational excellence.

Frequently Asked Questions

1. What is the cost of implementing GLNs?

The cost of implementing GLNs varies based on your company's size and needs. Small businesses may pay around $250 initially, while mid-sized businesses spend between $750 and $2,500. Large enterprises may incur $10,000 or more costs, excluding additional expenses like software upgrades, staff training, and equipment. Most businesses recover these costs within 12 to 18 months through improved efficiency.

2. How long does the implementation process take?

Implementation can take a few weeks to a year, depending on your business size and complexity. Small businesses typically need 2–4 weeks, mid-sized ones 1–3 months, and large enterprises up to 12 months. The process involves registration, GLN assignment, system setup, training, and testing, often rolled out in phases starting with key locations.

3. Can small businesses benefit from using GLNs?

Yes. While GLNs are often associated with large corporations, small businesses can also benefit from improved accuracy and efficiency. They can be especially helpful for small businesses looking to grow or work with larger partners.

4. Is a GLN number mandatory?

GLNs are not legally required for most businesses. However, they may be effectively mandatory if you want to work with certain large retailers or operate in specific industries like healthcare or food production, where traceability is critical.

5. How do I get my GLN number?

To get GLNs, you need to become a member of GS1 US (if you're in the United States). Visit their website to apply for membership. Once approved, you'll receive a company prefix that allows you to create your own GLNs.