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Unit 5: Intranet and Extranet for E-Commerce

Find out the trend towards open systems, connectivity, and interoperability related to
business use of the Internet, intranets, and extranets.

5.2 Identification and Tracking Tools for E-Commerce

It is very important to organize the information regarding the movement of goods that are being traded,
in order to maximize the benefits of e-commerce. The goods need to be tracked and identified to
provide information to the agencies involved. This is achieved by the integration of EDI and
identification/tracking tools.
5.2.1 EAN System
EAN system is an international trading language used to identify items, processes, and services. The
acronym EAN is derived from the system’s name - European Article Numbering. It is the only system
used at a retail point of sale and in commercial and industrial sectors for identifying consumer goods,
textiles, automotive parts, books, transport units, locations, and many other utilities.

EAN is managed internationally by EAN International which was established in
Did you know? Brussels in 1977.

The EAN system in India is administered by EAN INDIA. EAN International believes that the wide
acceptance of the EAN system, both internationally and across industry sectors, makes it a perfect basis
from which organizations and industry groups can migrate to full electronic trading.

EAN organizations in over 85 participating countries operate on a non-profit basis,
Did you know? funded by fees from participating companies. The services of EAN are free for its
members.

EAN system is voluntary, operating on the basis of co-operation between manufacturers, retailers, and
distributors. The major retailers across all parts of the world purchase products which are identified by
EAN numbers and bar codes. EAN system also consists of a set of messages for EDI transactions.
The EAN system is “open”. Anyone who wishes to use it can communicate and trade with anyone else
who is using it, as long as they abide by the international standards. The internationally defined
standards permit multiple suppliers to expand software and hardware equipment, assuring a
competitive market for products and services.
The EAN system provides a common language for trade and commerce worldwide and is applicable to
all industrial and commercial sectors. All member countries of EAN accept to operate their national
numbering system within the EAN rules, so the articles numbered and bar coded in one country can be
uniquely identified in all other countries and scanned using similar equipment.

Did you know? EAN number and symbols can be used anywhere in the world except in North
America where the system is different for some EAN symbols. U.S.A uses the UCC
system (Uniform Code Council).

The EAN system is recognized at all points in the supply chain, from the handling of raw materials to
the customer checkout. It allows automated collection of valuable information like sales volumes and
item location. It supports automated stock control systems which reduce scope for human error. EAN
system is the basis for electronic trading systems such as electronic data interchange (EDI).The EAN
system is a stable, world-wide system with an expanding range of users.

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