Procurement Glossary
Global Location Number (GLN): Unique identification of locations and business partners
November 19, 2025
The Global Location Number (GLN) is a globally unique 13-digit identification code for physical locations, legal entities, and functional areas in the supply chain. In Procurement , it Procurement the precise identification of suppliers, warehouses, and production facilities for efficient business processes. Read on to find out exactly what the GLN is, how it is used, and what advantages it offers for procurement.
Key Facts
- 13-digit, globally unique identification code according to GS1 standard
- Identifies physical locations, legal entities, and functional areas
- Enables automated data processing and EDI communication
- Reduces errors in supplier identification and address management
- Supports supply chain visibility and traceability
Contents
Definition: Global Location Number (GLN)
The Global Location Number is an international standard for uniquely identifying locations and business partners in global supply chains.
Structure and organization of the GLN
The GLN consists of 13 digits: a GS1 prefix (3 digits), a company number (up to 6 digits), a location number (3-6 digits), and a check digit. This structure ensures global uniqueness and enables automatic validation.
GLN vs. other identifiers
Unlike national codes such as the D-U-N-S number or bank-specific identifiers such as BIC/SWIFT, the GLN is specifically designed for supply chain applications. It supplements other supplier identifiers with location-specific information.
Significance of GLN in Procurement
For purchasing organizations, the GLN enables orders, deliveries, and invoices to be precisely assigned to specific locations. This supports master data governance and significantly improves data quality in procurement systems.
Methods and procedures
The successful implementation of GLN requires structured approaches and clear processes for allocation and management.
GLN registration and assignment
Companies obtain GLNs through authorized GS1 organizations in their country. The process involves applying for a GS1 prefix, defining the locations to be identified, and systematically assigning numbers. Central master data governance ensures consistent application.
Integration into procurement systems
The GLN is integrated into ERP systems, e-procurement platforms, and EDI interfaces. It is assigned to supplier master data, ordering processes, and logistics procedures. ETL processes ensure correct data transfer between different systems.
Quality assurance and validation
Regular validations check the correctness and timeliness of GLN data. Data quality KPIs measure the completeness and accuracy of GLN assignments in the master data.
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Key KPIs for GLNs
Key figures on GLN usage help to evaluate the quality of implementation and the benefits for procurement.
GLN coverage rate
This KPI measures the proportion of suppliers and locations with valid GLN assignment. A high coverage rate of over 90% for strategic suppliers is desirable. The classification rate can serve as a benchmark.
Data quality of GLN master data
The completeness, accuracy, and timeliness of GLN data are measured using specific data quality scores. Regular data quality reports document improvements and identify areas where action is needed.
Process efficiency through GLN usage
Reduction of ordering errors, delivery delays, and invoice discrepancies through clear location identification. These key figures are incorporated into comprehensive spend analytics and support the evaluation of GLN benefits.
Risks, dependencies and countermeasures
Various risks may arise when using the GLN, which must be minimized by taking appropriate measures.
Data quality and consistency
Incomplete or incorrect GLN assignments lead to problems in order processing and invoicing. Data cleansing and regular validation are essential. A data steward should continuously monitor GLN data quality.
System integration and compatibility
Not all systems fully support GLN standards, which can lead to integration problems. Careful system selection and appropriate interface development are required. Duplicate detection helps identify inconsistent data records.
dependence on suppliers
GLN usage requires suppliers to cooperate in providing accurate location data. Contract clauses and training can ensure compliance. Supplier management programs should explicitly address GLN requirements.
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Practical example
An automotive manufacturer implements GLNs for its global supplier base of 2,500 companies with over 8,000 production sites. Each site receives a unique GLN, which is used in all ordering systems, EDI messages, and logistics processes. Implementation takes place gradually over 18 months with pilot projects at strategic suppliers.
- Reduction of delivery errors by 35% through clear location identification
- Automation of 85% of all EDI transactions with GLN-based processes
- Improving supply chain visibility through accurate location tracking
Current developments and effects
The digitization of the supply chain and new technologies are changing the application and significance of GLN in Procurement.
Digital transformation and automation
Artificial intelligence and machine learning support automatic GLN assignment and validation. Automatic spend classification uses GLN data for more accurate expenditure analysis. These developments reduce manual effort and significantly improve data quality.
Supply chain visibility and traceability
The GLN is increasingly being used to achieve end-to-end transparency in complex supply chains. Supply chain mapping and supply chain analytics use GLN data for detailed traceability and risk analysis.
Sustainability and compliance
Regulatory requirements for supply chain responsibility reinforce the importance of clear location identification. The GLN supports material compliance and sustainability reporting through precise proof of origin.
Conclusion
The Global Location Number is an indispensable standard for modern procurement organizations that rely on precise location identification and automated processes. Its systematic implementation improves data quality, reduces errors, and enables advanced supply chain analytics. Companies should consider GLNs as a strategic tool for the digital transformation of their purchasing processes.
FAQ
What is the difference between GLN and other identifiers?
The GLN specifically identifies physical locations and functional areas, while other codes such as D-U-N-S Numbers cover entire companies. GLNs are specially optimized for supply chain applications and enable granular location identification within organizations.
How is a GLN applied for and managed?
GLNs are requested through national GS1 organizations. Companies receive a prefix and can then independently assign GLNs to their locations. Centralized management and documentation of all assigned GLNs is essential for data quality.
What are the costs associated with using GLN?
The costs include one-time registration fees with GS1, annual membership fees, and internal implementation costs for system adjustments. These investments pay for themselves through improved process efficiency and reduced error costs.
How does GLN support digital transformation?
GLNs enable fully automated EDI communication, precise supply chain analytics, and AI-based optimizations. They form the basis for digital twins of the supply chain and support IoT applications in logistics.
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