UCC-128 labels are special barcodes that major retailers require on shipments. Think of them as “product passports” that contain important information about what’s being shipped.
These barcodes must follow the specific rulebook set by GS1, the global nonprofit organization that standardizes barcodes. Then individual retailers create their specific compliance programs based on these standards, often adding their own requirements about:
- Label placement
- Additional information needed
- Specific formatting preferences
- Shipping documentation
By correctly using UCC-128 labels, anyone in logistics or retail who is responsible for ensuring shipments to major retailers can reduce labor costs, minimize errors, and improve inventory accuracy. Doing this manually can add to the risk of inaccuracies. A warehouse management system (WMS) helps warehouses automate UCC-128-compliant labeling and provides real-time tracking to meet these standards.
In this article, we’ll discuss UCC-128 compliance and best practices for logistics professionals and retailers to avoid violations and penalties from the Walmart and Amazons of the world.
Understanding UCC-128 Barcodes
These barcodes play a key role in logistics and supply chain management by encoding detailed shipment and product information in a standardized format. Unlike regular barcodes that only store product numbers, UCC-128 barcodes can include batch numbers, expiration dates, and serial numbers, making them essential for inventory management and traceability.
These barcodes follow the GS1-128 standard and use Application Identifiers (AIs of a different sort) to earmark the data they contain. For example, one AI might represent a batch number, while another could indicate an expiration date. This allows businesses to track a product’s identity and status with a single scan, improving accuracy and efficiency across the supply chain.
Key Data That Can Be Placed UCC-128 Labels
UCC-128 labels use structured barcode data for essential shipment and inventory details. Below are the key elements and their functions:
|
Application Identifier (AI) |
Data Point |
Purpose |
|
(00) |
Serial Shipping Container Code (SSCC) |
Assigns a unique identifier to a shipping unit (carton, pallet, or container) for tracking throughout the supply chain. |
|
(01) |
Global Trade Item Number (GTIN) |
Identifies products globally for item recognition across retailers and warehouses. |
|
(02) |
Trade Item Quantity |
Defines how many units of a specific product are contained within a package. |
|
(10) |
Batch or Lot Number |
Tracks production batches for quality control, recalls, and traceability. |
|
(11) |
Production Date (YYMMDD) |
Indicates the manufacturing date of the product for inventory tracking. |
|
(12) |
Due Date (YYMMDD) |
Specifies when the product should be used or processed. |
|
(13) |
Packaging Date (YYMMDD) |
Marks the date the product was packaged for shipment. |
|
(15) |
Best Before Date (YYMMDD) |
Ensures product quality by specifying the recommended consumption period. |
|
(17) |
Expiration Date (YYMMDD) |
Defines the final date the product is safe for use or sale. |
|
(20) |
Product Variant |
Differentiates variations of the same product (e.g., size, color, material). |
|
(21) |
Serial Number |
Assigns a unique identifier to each unit, critical for warranty tracking and counterfeit prevention. |
|
(30) |
Quantity of Each |
Specifies the number of individual units inside a packaging unit. |
|
(37) |
Number of Units Contained |
Indicates the total number of trade items within a shipment unit (e.g., total bottles in a case). |
Compliance Requirements for UCC-128
Here are some of the requirements anyone responsible for shipping to retailers must understand to master barcode compliance with a) the fundamental technical standards for UCC-128 (now called GS1-128), b) individual retailers’ standards:
1. Accurate Data Encoding
UCC-128 labels need to include accurate and up-to-date information using the correct AIs. This can include details such as product identifiers, batch numbers, expiration dates, and serial numbers.
A compliant GS1-128 label usually includes both human-readable text and machine-readable barcodes.
2. Serial Shipping Container Code (SSCC)
The GS1-128 label should have the SSCC, an 18-digit number that uniquely identifies a logistic unit, such as a pallet or carton. The SSCC gives you precise tracking throughout the supply chain for inventory management and traceability.
3. Label Placement and Size
The label must be affixed to the product packaging in a standardized location and be of a specific size to be easily scanned. The label is usually placed on a flat surface of the packaging, avoiding corners and edges to reduce the risk of scanning errors.
4. Print Quality
High print quality is non-negotiable for UCC-128 labels. The barcode must be printed clearly, without smudges or blurs to be scanned immediately.
You must use appropriate printing equipment and materials to maintain the barcode’s visibility over time and through various handling conditions.
5. Data Integrity and Verification
You must verify the UCC-128 label data before shipping to avoid rejections and fines. This includes quality control checks to make sure barcodes are scannable and contain accurate shipment details. Many warehouses use Electronic Data Interchange (EDI) to automate this process and achieve order fulfillment accuracy, especially for a high volume of single orders.
Consequences of Non-Compliance
Non-compliance with UCC-128 labeling requirements can have severe consequences, including:
- Shipment rejections: Retailers may reject shipments that do not meet the label’s compliance standards. This leads to delays, extra handling costs, and rework to fix labeling issues.
- Compliance fines: Many retailers impose fines for non-compliance. Those can add up quickly and impact the bottom line of warehouses and of retailers who supply larger retailers. These fines are usually levied for issues such as incorrect data, poor print quality, and improper label placement.
- Reputation damage: Consistent non-compliance can damage your reputation with retailers, potentially leading to contract terminations and loss of business opportunities.
- Delays in order processing: If barcodes are unreadable, you need to manually verify shipments. This slows down fulfillment and risks missing shipping deadlines.
- Increased labor costs: Workers spend more time fixing labeling errors instead of managing shipments. These manual corrections lead to higher labor costs.
- Inventory tracking issues: Incorrect labels can cause overstocking, stockouts, and inaccurate reporting.
By understanding and implementing these compliance requirements, you can avoid these negative outcomes and ensure smooth operations in your supply chain interactions.
Benefits of UCC-128 Compliance
Here’s how UCC-128 compliance benefits logistics pros and product suppliers:
Increase Demand Forecasting Accuracy
UCC-128 compliance provides structured data for accurate tracking and forecasting. You can capture detailed information on product movement, order volumes, and replenishment cycles.
This data allows you to analyze buying trends, predict future demand, and optimize stock levels, reducing the risk of overstocking or stockouts.
Improve Inventory Accuracy
The average inventory accuracy for retailers is around 63% in the U.S. Barcode scanning can help you track and verify your inventory levels, including stockouts, overstocking, and inaccurate reporting. UCC-128 labels contain batch numbers, expiration dates, and serial shipping container codes (SSCC). This helps you accurately track product movement and shelf life.
Reduce Manual Errors
Standardizing barcode labeling reduces manual errors by reducing human intervention and automating data entry. In fact, studies show that using barcode technology can reduce human error by 43.5%.
Each barcode contains structured data such as batch numbers, expiration dates, and SSCC for precise shipment tracking. This way, you can quickly detect and correct errors before shipments leave the warehouse.
Strengthen Client Relationships
UCC-128 compliance strengthens client relationships through data accuracy, reliability, and faster fulfillment in logistics operations. When shipments are labeled and tracked correctly, you can ship faster and accurately track your inventory.
Best Practices to Implement UCC-128 in Warehouse Operations
For warehouse managers, here’s how to implement UCC-128 in warehouse operations:
1. Use a Warehouse Management System
A WMS software can generate UCC-128 labels based on order and shipment data with accurate data encoding, including batch numbers, expiration dates, and SSCC codes.
Here’s how Da Vinci’s WMS features help you meet UCC-128 compliance, for example:
- Automates UCC-128 label generation based on order and shipment data.
- Integrates with barcode scanners for real-time tracking and verification.
- Stores all shipment data in a centralized system, ensuring accuracy and accessibility.
WMS prevents mislabeling, incorrect data entry, and missing shipment details. It also helps you meet retail label placement, format, and data accuracy standards to avoid shipment rejections.
2. Train Your Employees
Train your teams on how to read, scan, and verify UCC-128 labels. You can also open regular feedback loops to identify and resolve recurring compliance issues.
3. Standardize Your Procedures
Update your warehouse processes to include steps for generating, applying, and verifying UCC-128 labels. This will maintain quality control. You can also set up checklists for label application and verification for consistency and compliance across all operations, such as order picking or assigning inventory storage.
By following these best practices, you can effectively implement UCC-128 labeling to meet compliance and improve your operational performance.
How Da Vinci Unified WMS Simplifies UCC-128 Compliance
Here’s how Da Vinic’s WMS helps you meet UCC-128 compliance standards:
Automated Label Generation
Our system generates UCC-128 labels directly from order and shipment data, encoding essential information like batch numbers, expiration dates, and Serial Shipping Container Codes (SSCC) to reduce manual errors.
Barcode Scanning Integration
Da Vinci’s cloud-based WMS solution integrates with your barcode scanners for real-time tracking and validation of inventory, receiving, and picking processes. Our software makes sure each shipment follows compliance standards to meet your client’s demands and build a reputation.
Picking Barcode Validation
During the order-picking process, our software verifies that the correct items and quantities are selected for orders. This minimizes fulfillment errors and improves order accuracy.
Centralized Data Management
Our WMS collects data in a unified database so your employees can verify and monitor shipment data. This helps you improve traceability and simplify compliance reporting.
By leveraging these features, you can easily meet UCC-128 requirements, reduce shipment errors, and maintain strong relationships with your partners.
Conclusion
UCC-128 compliance is a critical component for reliable shipping operations. By adhering to the standardized requirements for UCC-128 labeling, you can improve inventory management and traceability and maintain strong relationships with your partners.
Implementing UCC-128 labels correctly and consistently also helps you avoid costly shipment rejections and compliance fines while boosting operational performance.
If you’re looking to streamline your warehouse processes and meet compliance with UCC-128 requirements, Da Vinci Unified WMS offers robust solutions tailored to match your business needs.
Request a demo today to learn how we can assist in implementing UCC-128-compliant processes in your operations.