Why use standardized location identification numbers, such as GLNs, instead of custom identifiers?
Any company can design its own internal system and code structure to identify all the locations covering its operating requirements. Although an internal solution might seem to be the easiest and fastest way forward, when information is exchanged between Information Systems of distinct companies this may present several problems, such as Duplication: Two or more trading partners may use the exact same location number to identify an internal location in their company – no guarantee of uniqueness. Complexity: Internal identifiers will have a variety of structures and formats, making application programming more complex and application changes costly. Significance: Location identifiers that contain information related to the location in the code structure itself will become difficult to handle, as the coding structure evolves to incorporate new meanings.