The U.P.C. allows for unique identification of suppliers and their products throughout the distribution chain. It provides unique numbers for items and shipping containers, while remaining constant in the number of digits. The U.P.C. is a 12 digit code that identifies the company and product. It is a numeric code which allows for greater accuracy and uses less space. The 12-digit U.P.C. number uniquely identifies one and only one item.
Companies are then responsible for assigning the five digit item numbers.
Numbers need to be unique to allow for inventory and pricing. Different numbers need to be assigned to size, color and weight variations. When numbers are assigned, they need to be communicated to trading partners. Manufacturers and distributors have join responsibility to maintain the accuracy of the active U.P.C. information. Standardization, through the use of bar codes has resulted in manufacturing, warehousing and distribution cost savings and efficiencies across industries and through out the supply chain.