Tablet of chocolate or box of chocolate? - The confusion over the allocation of GDSN packaging types

The challenge of migrating from Sinfos to GDSN confronts both retail and industry inside the German FMCG community right now. Both parties work hard to prime their item master data for the successful participation in the GDSN. Alongside the migration preparations, there are numerous smaller "sideshows" taking place, which I repeatedly encounter throughout our customers projects.

It is precisely these supposedly minor sideshows eventing around the GDSN migration that I will focus on in my upcoming blog series. Again and again, practice shows that for an effective migration a smooth coordination between industry and trade partners is absolutely essential. The success of the implementation highly depends on the correct interpretation of individual GDSN elements.

Let's start today with the definition of GDSN packaging types. When synchronising the item master data between industry and retail, there seems to be more disagreement regarding the immediate packaging then initially expected. On the one hand, this is due to the definition of the individual immediate packaging. For example, it is easily possible to define a 'carton', yet to differentiate it clearly from a 'folding box' is a different matter. Is it the size? The closing mechanism? Or rather the type of construction?

The abundance of existing packaging types inevitably leads to duplication and demarcation problems between two or more packaging types relating to the same item.

On the other hand it is the perspective from which an item is viewed and the resulting selection of immediate packaging in the master data system which leads to discrepancies between the industry and its retailers. The retailer primarily wants to service its customers. Therefore, parallel to choosing the immediate packaging, it also labels the shelf tags for the store. The industry, however, defines the immediate packaging inconsiderate of the customer's perspective at the point of sale.

The food retailer maintains a "Schogetten Alpenvollmilch" tablet of chocolate preferably as a 'tablet' in the system. The supplier, on the other hand, is more likely to choose "box" as the immediate packaging in the data pool on the grounds "that the chocolate is actually packaged in a box". This in itself is perfectly conclusive. There is only one problem: the customer is used to find "Schogetten" under the tag "tablet" on the shelf label at the point of sale - an expectation that the retailers would obviously like to continuously fulfill.

Let's look at another range of products such as the "Nivea Cream for Men". The cream comes in a glass jar and is additionally packaged in a box. This poses the question which package type to select: "box" or "jar"? The retailer leans towards the perspective of the end consumer, who will eventually hold a glass jar when using the Nivea Creme for Men. The supplier though chooses the packaging type "box", considering the item how it is distributed to the retailers.

Who is in the right? Is there a 'right' perspective at all?

According to the GS1 recommendations, the immediate packaging is also referred to as "sales packaging". In this context it can be legitimately understood as the outer packaging. In this case, the GS1 application recommendation "Efficient Unit Loads" goes even further. It defines "packaging types that are used as additional packaging to the sales packaging and are not necessary for reasons of hygiene, shelf life or the protection of the goods against damage or soiling when delivered to the end consumer" as immediate packaging, thus supporting the industries perspective.

If the suppliers insist on their perspective, the tagging of the immediate packaging on the shelf label will no longer make sense for a lot of items. At this point, the retailer will have to consider which additional applications there may be for the most efficient use of the packaging type provided by the industry. This is because the useful information left to the retailer in respect to the immediate packaging would merely be the information about how he can display his item according to the immediate packaging on the shelf.

Which immediate packaging now is the right and which the wrong, remains undecided. This question will not be easily answered in the near future. The confusion about packaging types thus remains with us; there will still have to be a lot of discussions until an agreement is reached.

In my next blog article I will write on the question why the system of proper packaging hierarchies in the GDSN is so important and what the consequences of incomplete packaging hierarchies can be.