Global Location Number: Improving The Efficiency
The Global Location Number (GLN) improves the efficiency of communication among organisations. The GLN enables the unique and unambiguous identification of any type of location used in business processes, which is a prerequisite for efficient communication between trading partners. A GLN acts as a database key which references location-specific information that is repeatedly applied. Its function is to reduce input errors and increase efficiency.
GLNs provide a unique and unambiguous identification of the following:
- Legal Entities – Any business, government body, department, charity, individual or institution that has standing in the eyes of the law and can enter into agreements or contracts.
- Functions – An organisational subdivision or department based on the specific tasks being performed, as defined by the organisation. Legal entities and functions can engage as parties in business processes. The use of Global Location Numbers (GLNs) in these areas is driven by the exact role of each party within a given business process.
- Physical Locations – A site (an area, a structure or group of structures) or an area within the site where something was, is, or will be located. The identification of physical locations is an essential element for supply chain visibility. A GLN assigned to a physical location always has a permanent and identifiable geographical address regardless of any business process roles conducted at the site.
- Digital Locations – A digital location represents an electronic (non-physical) address for communication between computer systems. Just as the exchange of physical goods is a transaction between companies, the exchange of data is a transaction between systems, for example, the delivery of an invoice by EDI or email to an accounting system.
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