Please find some further information on commonly used supply chain terms and frequently asked questions regarding our proprietary technology solution:

What is EDI?

EDI (Electronic Data Interchange) is the electronic transmission of data.  It describes a wide variety of actions from the very simple to the very complex.  At it’s simplest it is no different from a fax.  At it’s more complex, it will order product, tell you the breakup of quantity and where, when and how each is to be delivered, and when and how much you will be paid.

While the building blocks of EDI are fairly common, each setup is different so it is a matter of building a unique interface between each customer.  We receive orders by product, by inner, by specific store.

  • We pick, pack and label the product as per the above.
  • We electronically send an Advanced Shipping Notice (ASN) to the customers distribution centre. This allows them to identify all cartons by product and find destination.
  • Product runs through a high speed conveyor belt to get sorted and end up at the store where they are needed.

All of the above are systems driven.  It requires little to no human intervention to ensure the right goods are in the right store at the right time.

Lectronic works at the more complex end by providing our customer with systems driven real time replenishment solutions.

Barcode and Trade Unit Numbers

Most people in business are now aware of barcodes.  Barcodes are unique identifiers added to products so they can be scanned through checkouts.

There are many types of barcodes, but the main one used in Australia and internationally is the EAN13.

Barcodes are made up of 13 digits:

  • First 2 digits are a country code: ie 93 – Australia
  • Next 5 digits are a company allocation: ie 45239
  • Next 5 digits can be randomly allocated: ie 73427
  • and the last one is the check digit: ie 4

Read our Q&A’s

To get the check digit you need to have a program.  You apply the first 12 numbers and it will give you the check digit.  The numbers in the barcode do not in themselves mean anything.  It is only relevant when you apply that number to a specific product.  It is applying the number to the product that gives it meaning.

Trade Unit Numbers (TUNs) or sometimes known as Global Trade Indicator Numbers (GTINs) are to modern warehouses what barcodes are to supermarkets.  TUNs tell the warehouse that this carton is a certain product and in a certain quantity.  Instead of being a 13 digit barcode they have 14 digits.

Again any correct 14 digit TUN can be assigned to a carton of product. However the correct application should be as follows:

The product barcode should have an additional number applied at the start and put through appropriate software to get a new check digit.

For example:

Barcode Australia can allocate suppliers with barcodes, or for smaller quantities there are brokers that can sell you smaller lots.

Should the product already have a barcode allocated by an overseas manufacturer, this barcode is very likely to be acceptable.

Real time replenishment

This is a form of modern supply chain where the customers and suppliers build a system that basically has the supplier replacing stock back into the store from where the sales were made.

This is a systems driven process where a determination is made on what stock should be in store at all times.

For example; it could be determined that store A should have a minimum of 20 and a maximum of 32 packets of corn flakes on display on a shelf at all times.  Corn flakes come in cartons of say 12.

As soon as the check out registers the sale that leaves less than 20 in stock, it automatically re-orders another carton of 12.

The supplier pick, packs and labels that carton of 12 boxes of Corn Flakes to go all the way through to the store in question.

Thus by the system always immediately knowing when product drops below a minimum and the supplier replenishing this stock little and often.

The stock is always in the right store at the right time.

Sales are maximised and infrastructure/capital costs are lessened.