Unique identification: Best of all worlds

A few weeks back, I wrote an article on how the barcode positively affects the way we do business by means of facilitating seamless trade and providing security for consumers.

Through the information stored in every barcode, may it be batch or serial numbers, the supply chain is never the same because it is better — businesses are now able to conduct their trade more efficiently and consumers are much more able to protect themselves from buying substandard or counterfeit products.

As both trader and consumer become more discerning and interconnected, thanks to the propagation of free trade and e-commerce, correct information is demanded and expected to be linked with the right product. This requires a standard system to store, identify, capture and share the needed data by both trader and consumer.

Such a link is made possible by a globally identified, recognized and inherently distinct unique identification.

The unique identifier or UID is one of the key principles required for chain information management of products that are globally traded. UID may be serial numbers, codes or random numbers, which can be used singly or combined to create unique identification for products.

Examples of the UID includes Electronic Product Code (EPC), Universally Unique Identifier (UUID) and Global Trade Item Number (GTIN), among others. These identifiers serve a variety of purposes, may it be identifying product information or stocks availability.

With the UID, smart data is possible by providing complete, consistent and accurate information that can be shared and linked. The UID allows trading across borders and across industries, such as food and pharmaceuticals, which demands a higher level of traceability and security.

The UID is not only useful to trader and consumer — governments are also in need of a reliable data ecosystem.

As industries, consumers, as well as governments look for new efficiencies in the global supply chain, with factors such as traceability, security and regulatory compliance being paramount, the call for facilitating the seamless movement of goods while maintaining the borders secure must be heard and acted upon.

Increasing globalization and digitalization amid challenges in the international supply chain persist. Trying to solve trade distortions and making sure that the regulatory compliance is respected and adhered to is not a walk in the globalization park. UID helps in this regard.

The UID increases transparency between business and government. Apart from traceability, verifying product authenticity is easier with the UID.

GS1 is an organization that provides global standards to businesses all over the world — an identity provider that offers unique identification of products. It is the world’s largest provider of identification systems used in the supply chain and in retail. Aforementioned barcodes, GTIN, EPC and other unique numbers are provided by GS1.

Being the global language of business, GS1 promotes the use of standards for ease of doing business. There are more than a hundred countries and over a million corporations the world over that comprise GS1, the Philippines and the Association of Southeast Asian Nations (Asean) included. GS1 Philippines is working hard towards promoting a single UID not only in the country, but across the ASEAN to help facilitate easier trade across the region.

The Asia Pacific Economic Cooperation (APEC) had realized early on the importance of elevating the discussion on global data standards.

A study conducted by APEC, entitled “Study on the Application of Global Data Standards for Supply Chain Connectivity,” in a nutshell, showed that standards are helpful to improve traceability, risk management and overall supply chain efficiency.

Opportunities for ASEAN are immense, given that we are now a part of an ASEAN Economic Community.

In order for trade to flourish in the region, the advocacy should start by promoting the importance of global standards in the supply chain across the region and when all stakeholders are consulted, adopting a single UID in the ASEAN must be in the works.

In the next few weeks, GS1 Philippines will be in consultation with relevant stakeholders to identify areas for cooperation.

While challenges persist in global trade, there are far more opportunities — it’s all about identifying the gaps and bridging them, by creating and supporting platforms that will enhance a safer and fairer flow of goods across borders.

Fortunately, business, government and consumers can work hand in hand in crafting systems to promote better trade. It is high time that we pursued a regional approach for cooperation between stakeholders in the ASEAN.