To manage inventory control, Lowe’s hardware stores and corporation use a scan code system that is consistent with GS1 standards. GS1 is a non-profit entity that manages the universal purchasing code system for retailers, also known as UPC codes. Within these standards Lowe will utilize various UPC codes for inventory control and supply, including UPC Version A, Version E, EAN 13, and EAN 8.
UPC-Version A uses a 12-number system also known as GTIN-12. This design applies a company prefix with six to 10 digits consistent with GS1 references for such companies in the U.S. The next few digits are the item reference. The last digit represents a check digit for data control.
The UPC-Version E uses the same GTIN-12 approach as Version A, but it involves a suppressed 0 digit in the display. This code styles gets used by Lowes for smaller consumer packages versus large number commercial bundles of the same goods.
The EAN-13 and EAN-8 Codes utilitize their own GTIN sequences. The GTIN-13 for EAN-13 works similar to the GTIN-12 design above with a different prefix being used rather than a company UPC digit. The GTIN-8 version utilized by EAN-8 codes are entirely created by GS1 rather than the product manufacturer. This code style is saved for good and products that get shipped overseas and not sold within domestic U.S. territories.
Lowe’s spells out in various documentation provided to potential and existing suppliers how it expects goods to be delivered with the various inventory control codes included. These additional codes are in addition to the individual product codes detailed above.
Every shipping container from a supplier, whether big or small, must retain an ITF-14 bar code on the packaging. This allows Lowe’s personnel to track receipt of the goods when delivered, where they are stocked, and when they are sold in bulk. When shipped each carton has to be positioned so the bar code is displayed outward and easily visible.
With regards to the pallet shipments as opposed to boxes, suppliers have to print a GS1-128 Serialized Shipping Container Code (SSCC-18) to identify the whole pallet shipment.
The coding printed must be clearly readable and any changes to shipping codes must be provided to Lowe’s 60 days ahead of time before they begin to be used by a supplier.
Lowe’s clearly warns suppliers that mistakes caused by mislabeling will cost the supplier. Since Lowe’s collects the initial sales of the product before paying the supplier, additional labor costs associated with fixing the mistake are charged to the supplier as a deduction of payments due. Vendors can also be fined for repeat problems that Lowe’s merchandising teams have to deal with. Suppliers agree to these fines as part of being able to do business with the Lowe’s Corporation.
