How will the GLN meet the following goals:
1) improve price accuracy; 2) eliminate the maintenance of
thousands of supplier assigned customer numbers; and 3) improve
the accuracy of GPO sales reports?
1. Improve price accuracy. With the GLN,
every distributor, manufacturer, GPO, etc. will use
a single number to identify an
organization. Additionally, they will all access the same
database that describes that
organization and all of its entities, each having its own GLN.
This eliminates multi-number
cross-referencing that takes place today between GPOs,
distributors, and
manufacturers as they negotiate contracts, and determine
contract
eligibility, which ultimately
determines the prices you pay. With the GLN Registry, each
stakeholder will always know
exactly who they are talking about when price levels are set
and communicated between the
GPO, manufacturer and distributor.
2. Eliminate the maintenance of thousands
of single-purpose, supplier-assigned, proprietary
numbers. This will eliminate
the need to look up supplier-assigned, proprietary customer
numbers. Suppliers will use
the GLN in filling orders and shipping products, not the
numbers that they assign. It
really is that simple.
3. Improve the accuracy of GPO sales
reports. Because there is a central and common data-
base that tells the entire
industry about a facility, the GPOs will be able to work at a
more
granular level with the
suppliers to make sure that all sales are being reported
properly.
CHeS has a CD that better describes each of
these reasons in much more detail, so please request
it by emailing CHeS here.
How and when to use the GLN?
Customers use their numbers whenever they
communicate business transactions with suppliers and other
trading partners outside of their organization. The GLN is like
a Social Security number for business communications because it
uniquely identifies an organization across the entire supply
chain, with all suppliers, Group Purchasing Organizations
(GPOs), etc. Here are some more specific examples of its use:
• Ordering products
• Processing supply-related
order and invoicing inquiries
• Claiming manufacturer rebates
• Corresponding with suppliers
• Performing all other standard
business transactions with manufacturers, distributors,
group purchasing
organizations, or any other stakeholder across the supply
chain.
This number can be freely used with anyone,
in any industry.
Can supplier GLNs be used within existing
systems to uniquely identify them?
Absolutely. We recommend using the supplier
GLNs as the standard vendor identification number within
existing purchasing, accounts payable, and in other systems
where exact vendor information must be used, because:
• You can use a central
database, called the GLN Registry, to look up any supplier
information at any time.
• This supplier information can
be downloaded. Then, by simply cutting and pasting, you
can easily update any vendor
information without having to re-key it. Alternatively, an
IS department could write a
simple interface program to keep it completely synchronized
with the industry database for
multiple suppliers.
Also, as changes occur to the supplier's
GLN information, automatic notifications can be sent
as a standard feature of the GLN Registry.
Does an organization ever interact with
the GLN Registry?
Yes. An organization maintains its own
information within the GLN Registry. If, for example, it adds a
new ship-to, that information is added to the GLN registry.
Suppliers can then sign on and see what has changed.
Next, facilities can retrieve supplier
information from the Registry whenever it is needed. This
information is downloadable, and is used to maintain supplier
information within purchasing systems.
One last note: GPOs may initially help set
up a facility's GLNs in the GLN Registry. Contact your GPO
representative for more specific information.
How will the GLNs work with GHX?
GHX is a charter member of
CHeS. It has been part of the planning and design of the GLN
Registry and the supporting business practices. GHX's systems
will support the use of the GLN. Feel free to contact them for more information.
How much will Global Supply Chain
Identification cost?
The cost to health care providers to get
GLNs assigned will vary; this is dependent upon how a specific
GPO is working with GS1 US to get facility numbers assigned.
Contact your GPO representative for information about their
related services.
Will the Global Supply Chain
Identification work?
It is up to everyone in the health care
supply chain to make the health care GLN successful, and it
certainly has the potential to work better than the disparate
numbering systems currently in use. GPOs need to require
suppliers to report sales by using the GLN for its member
locations; GPOs need to work with the manufacturers and
distributors to use GLNs for contract and price eligibility
determination; GHX and Neoforma need to be able to process
orders through the use of the GLN; and health care providers
need to work with their suppliers to accept and use the GLN in
all business transactions. It is a complex circle, but if each
stakeholder works together, we can make it happen. Many of
these activities are already underway.
What other industries use the GLN?
Approximately 23 other industries use the
GLN and include: Apparel and Fashion Accessories, Building
Supplies, Chemicals, Food and Beverage, Foodservice, Furniture,
Baby Products, Office Supplies, Domestics/Linens, health care -
Over the Counter Pharmaceuticals and Medical/ Surgical,
Maintenance, Repair and Operation (MRO); Computer
Hardware/Software/Electronics, Lawn & Garden,
Photographic Equipment, Publishing, Telecommunications, and
Utilities - Power Transmission.
Do all health care suppliers and divisions
of the large global companies already have their GLNs assigned?
No. Some do, but many do not. As a rule,
probably the larger companies that sell to customers in other
industries do, and the smaller health care-only suppliers do
not.
Suppliers will work directly with the GS1
US (the same organization that supports UPC labeling in grocery
stores), to get their GLNs assigned. Suppliers that do not have
GLNs will probably have to pay a fee to get their numbers, all
based upon their annual sales volume. The GS1 US is a
not-for-profit organization so these fees are very reasonable.
What are the plans for rolling this out to
every hospital and provider?
• During the summer and fall of
2004, CHeS and GS1 US will hold regional seminars
where providers and suppliers
will be invited to learn more about Global Supply Chain
Identification and the GLN.
These will be one-day educational meetings.
• CHeS and GS1 US will be
presenting this program at various other industry and GPO
meetings.
• The GPOs will have their own
rollout plans over the balance of the year. Please contact
your GPO for more information.
What is the Coalition for Healthcare
eStandards (CHeS)?
The Coalition for Healthcare eStandards is
comprised of some of the largest group purchasing organizations
in health care and several e-commerce companies serving
hospitals and the health care industry. The companies have
formed CHeS to ensure that the cost savings promised by
e-commerce will not be compromised by multiple, inconsistent
data standards. According to the Efficient Healthcare Consumer
Response industry report, billions of dollars are wasted each
year in the health care supply chain because data standards are
either lacking entirely or are not as widely used or well
developed as in other industries.
Amerinet, Consorta, the Department of
Veterans Affairs, MedAssets, Neoforma, Novation, Premier, and
Defense Logistics Agency have joined the Coalition as core
members. The primary goals of the Coalition are the following:
• To promote the adoption and the use
of open data exchange standards
• To accelerate industry-wide adoption
of comprehensive data standards
• To encourage other industry players
to participate in the e-commerce standards work group
CHeS is working toward a customer
identification standard to meet the needs of the health care
industry. It also is collaborating with the Healthcare
eBusiness Collaborative to assess the feasibility of
establishing a product data utility to help synchronize medical
supply information across the health care industry.
Who is the GS1 US?
The mission of the GS1 US is to take a
global leadership role in establishing and promoting
multi-industry standards for product identification and related
electronic communication. The GS1 US has become one of the
world's most respected and influential standards and global
commerce organizations. From its groundbreaking development of
the Universal Product Code to its recognized work in
user-driven industry standards, the GS1 US has a strong track
record of accomplishments and innovations for global supply
chain management. The GS1 US remains committed to working with
industry to create the next generation of standards and
solutions to enhance the efficiency of the 21st century global
supply chain.
Its EAN.UCC system provides identification
standards to uniquely identify trade items, logistic units,
locations, assets and service relations worldwide. The
identification standards define the construction of globally
unique and unambiguous numbers that make supply chains much
more efficient and responsive to customers in any industry. The
system overcomes the limitations of using company- or
sector-specific coding systems. Besides the unique identifying
numbers, the system also standardizes additional information
such as best-before dates, serial numbers and lot numbers.
These identifying numbers use approved bar
code symbols, but other technologies, such as radio frequency
tags, may be added. Following the principles and design of the
EAN.UCC system means that users can design applications to
process EAN.UCC data automatically. EAN.UCC system
identification numbers include:
• global trade item number
(GTIN)
• SSCC (logistic units)
• global location number (GLN)
• global returnable asset
identifier (GRAI)
• global individual asset
identifier (GIAI)
• global service relation number
(GSRN)
