Introduction
In modern supply chain management, the use of RFID technology is considered key to enhancing efficiency. For hotels, retailers, and distributors, understanding the different applications of EPC in RFID and the coding standards is crucial. This article will delve into the three most commonly used codes: SGTIN, SSCC, and GRAI. Through the proper application of these standards, operational transparency for businesses will be significantly improved.
What is EPC coding?
EPC coding is a unique identifier stored within the RFID tag chip. It is not merely a simple number but a structured code containing corporate information, product type, and a unique serial number. At RFIDLabel, we ensure every RFID tag we produce complies with international GS1 standards for seamless global interoperability.
SGTIN: The Gold Standard for Item-Level Tracking
SGTIN (Serialised Global Trade Item Number) is the most widely used coding method in the retail industry. It consists of the traditional GTIN (the code used in barcodes) combined with a unique serial number.
Why Choose SGTIN?
SGTIN is adopted when each individual item needs to be uniquely identified. For example, apparel brands like Uniqlo or Nike use SGTIN to track every garment. This approach can elevate inventory accuracy from the traditional 60% to over 99%.
In the hospitality industry, SGTIN can also manage high-value customised RFID tags. Each hotel key card can be assigned a unique SGTIN, enabling precise access control and anti-counterfeiting protection within the system.
In-Depth Analysis of SGTIN Structure
SGTIN-96 is currently the most widely adopted format in global retail. To enhance your understanding, we break down this complex coding structure:
Header: This fixed 8-digit code informs the RFID reader that the tag uses SGTIN-96 encoding.
Filter Value: This 3-digit value is highly practical. It informs the reader whether the object is an “Item,” an “Inner Pack,” or a “Case.” This enables the reader to quickly filter out unnecessary data during inventory counts.
Partition Value: Since company prefix lengths vary, the partition value defines the boundary between the company code and product code.
Company Prefix: This is your unique enterprise identifier assigned by GS1. It serves as your brand’s “identity card” in international trade.
Item Reference: This is defined by you. For example, you might assign “Hotel Wooden Key Card” the code 001 and “Silicone RFID Wristband” the code 002.
Serial Number: This is the core of the SGTIN. Unlike barcodes, each SGTIN label carries a unique serial number. This means even two identical Nike sneakers will be assigned different serial numbers.
Through this granular structure, SGTIN enables true “Internet of Everything” connectivity. This not only aids inventory management but also plays a crucial role in preventing counterfeit goods from entering the market. When a unique serial number is activated multiple times within the system, an automatic alert is triggered, thereby safeguarding brand reputation.
SSCC: The Navigation System for Logistics Units
Unlike the SGTIN, which is assigned to individual products, the SSCC (Serial Shipping Container Code) is specifically designed for logistics units. These units can be pallets, containers, or large shipping cartons.
SSCC Application Scenarios and Real-World Examples
In RFIDlabel’s factory operations, SSCC serves as the cornerstone of logistics automation. When bulk shipments of RFID wristbands or access cards are dispatched to distributors in North America or Europe, each pallet is affixed with a large RFID tag containing the SSCC code.
Imagine a pallet loaded with 50,000 hotel key cards entering a Walmart distribution centre. With traditional barcodes, staff would need to stop, locate labels, and scan each item individually. But with RFID technology, the forklift operator simply drives through an RFID gantry. Within less than a second, the system reads the SSCC code and automatically updates the inventory status.
The primary advantages of SSCC lie in its “temporary” and “unique” nature. An SSCC code is typically valid for only one shipment. Once goods are received and unpacked, the code’s purpose is fulfilled. This approach enables real-time tracking of thousands of pallets, significantly reducing the risk of goods going missing during transit.
Additionally, SSCC is frequently used for Advanced Shipping Notices (ASN). After our factory completes loading, an electronic document containing SSCC information is sent to the customer. Customers know exactly what products and quantities are on each pallet before goods arrive. This advanced transparency is essential for modern retailers like Costco or Walmart.
Why do logistics companies favour SSCC?
▪ Fast receiving: Entire pallets can be scanned at once without unboxing.
▪ Low error rate: Manual intervention is minimised, effectively preventing shipping errors.
▪ High transparency: The shipment status can be shared among all participants in the supply chain.
GRAI: Steward of Recyclable Assets
GRAI (Global Recyclable Asset Identifier) is specifically designed for assets requiring multiple cycles of reuse.
GRAI in Practice
For assets that need to be recycled, such as plastic pallets, beer kegs, or reusable RFID wristbands in hotels, GRAI is the optimal choice.
For instance, at large music festivals or water parks, tens of thousands of RFID wristbands are distributed to visitors. After the event, these wristbands are collected, cleaned, and reused. GRAI coding enables precise tracking of each asset’s wash cycles, damage status, and current location.
GRAI Advantage: Full Lifecycle Asset Management
GRAI coding is not merely an identifier—it’s a powerful management tool.
Asset Lifecycle Management: By logging every read/write event, asset wear and tear can be monitored. For instance, hotel laundry tags track how many times a sheet has been washed. When washes reach a preset threshold, the system automatically triggers replacement, ensuring consistent guest service quality.
Loss Prevention and Anti-Theft: Expensive reusable containers, pallets, or equipment can be tracked. By installing RFID readers at factory or warehouse exits, any unauthorised asset movement is immediately recorded. This significantly reduces additional costs from asset loss.
Environmental Sustainability Support: As global environmental standards rise, more brands (like Uniqlo and Zara) are focusing on recyclable packaging. By promoting asset circulation, companies can more easily achieve their environmental goals. GRAI-coded RFID tags ensure these eco-friendly assets are properly recycled and reintroduced into production cycles.
Enhanced Operational Efficiency: During event planning—such as large music festivals—GRAI-coded RFID wristbands enable swift entry checks and cashless payments. After the event concludes, these wristbands can be efficiently recycled and reset, ready for the next occasion.
In this way, GRAI helps businesses transition from a “linear economy” to a “circular economy,” reducing costs while enhancing brand image.
Conclusion
A deep understanding of SGTIN, SSCC, and GRAI enables smarter supply chain management for businesses. SGTIN ensures the unique “identity” of every product, SSCC optimises the ‘journey’ of goods, while GRAI safeguards the “lifecycle” of valuable assets.
At RFIDLabel, our mission is to empower clients with more efficient operations through RFID technology. Whether you require RFID tags for retail or pallet labels for logistics, we offer flexible wholesale solutions tailored to your needs.
If you have any questions about applying these codes to your specific project, please feel free to contact us.
