What is label Compliance? Literally, it means meeting or complying with the labeling guidelines set down by a customer. The customer, whether it is a retail firm, shipper, or manufacturer, has created its own labeling specifications to fulfill its transportation and logistical needs. It is up to the supplier to meet those guidelines. Failure to do so could result in return of product, fees, or contract termination.

Organizations like the UCC (Uniform Code Council), the AIAG (Automotive Industry Action Group) and HIBCC (Health Industry Business Communications Council) have developed specific industry labeling standards. Their guidelines minimize problems between trading partners by creating a basic structure all suppliers and customers can agree upon. The guidelines are implemented on a volunteer basis.

In practice, the benefits of compliance labeling are fairly obvious for the customer. A bar code labeling standard helps monitor inventory, assists replenishment, minimizes distribution time, and allows for product traceability. The supplier's initial time and expense appears to be justified only in maintaining a business relationship with a customer requiring label compliance. But, over time, the increased accuracy, improved order picking, and streamlined inventory will be solid evidence that a bar code labeling system benefits both sides. The bottom line is to get the right product to right place in the shortest possible time.

Product Label

The U.P.C.-12 and Data Matrix bar code perform the same function. They identify an individual item. The U.P.C. is scanned at the POS (point of sale), or the register. For the customer, it performs inventory functions and automates the purchase process by returning the item price and adding it to the total sale.

The U.P.C. is commonly preprinted on product packages or printed on 'hang-tags' for the apparel industry, where they are applied with a removable plastic hang strip.

The Data Matrix identifies a component. Its function starts at the factory, where it aids the supplier in warehouse inventory and order filling. At the customer location, the Data Matrix also is used for inventory and the routing of components from the dock to the assembly line. If a particular part is defective, the Data Matrix reveals the vendor number and a trace code (1T).

One of the primary features of the Data Matrix is that a single symbol, containing up to 500 digits can be engraved or molded directly into the object itself. The symbol can be placed on something as small as a computer chip.

Container Label

The SCC-14 Sample Container Label identifies a multi-pack of a single U.P.C. product. The Interleaved 2 of 5 bar code uses the same value as the U.P.C. with only two differences.

The packaging type identifies the type of container used or the number of consumer units. Each configuration is assigned a different number.

An additional zero is inserted after the packaging type. This extra digit performs two functions. It fills out the U.P.C. to match the EAN (European Article Number) for overseas shipments. Also, the entire bar code must contain an even number of digits whether using interleaved 2 of 5 or UCC/EAN-128. The extra zero creates a total of 14 characters.

When shipping to manufacturers, the container label must encode information relevant to the distribution and use of the content as well as its identification and manufacturer.

General Motors introduced the 1724a label to the automotive industry in 1999. The GM 1724 Sample uses a PDF-417 symbol to encode the part number, quantity, carton weight, and shipment information; as well as a serialized, container license number. Unlike the SCC-14, the license number makes each carton unique, and can be traced back to the production line. The label details not only carton content, but also distribution and handling data.

Shipping Label

The third level of compliance is the shipment label.In the SSCC 18 Sample, the Container Code is a serial number that functions as shipment identification. This assigned value can be referenced for the container contents, purchase order number, ship date,etc.

Serial Shipping Container Codes are comprised of several elements.

The packaging identifier indicates the type of container (carton, pallet, etc). The carton serial number is generated to give each container its own identity. This value must remain unique for one full year.

Note that all three of the bar codes on the SSCC-18 are using Application Identifiers. These identifiers designate the type of data encoded as well as the value of the bar code.

The Postal Code bar code is UCC/EAN-128. An Application Identifier precedes the postal code. For shipments in the U.S. and Canada, the prefix is 420; all international shipments are preceded by 421. The To Store Code Application Identifier is always 91. Cross-dock shipments use this code to quickly identify shipments going to the same store, without having to scan or reference the rest of the label.

In the AIAG B10 Sample, the UPS MaxiCode contains all the relevant shipping information, including: the customer's address and postal code, the shipper's ID number, and a package tracking number.While the shipping company uses the MaxiCode, the Code 39 bar codes are for use at both the supplier and customer locations.

The shipment label has a two-fold function. Primarily, it contains all the critical information for shipping the container to the customer. However, its unique container number can be used to for both inventory and tracking.