Trade Item - TX

A Trade Item refers to any product or combination of products and packaging components that are sold and distributed within the supply chain, up to the point of delivery to the end-user or consum

A trade item is defined as one or more products combined optionally with one or more packaging components, which are packaged together and made available for sale, distribution, or consumption. Each trade item is uniquely identifiable through a Global Trade Item Number (GTIN), enabling efficient tracking and management across various supply chains. This definition accommodates various forms of trade items, from single products in minimal packaging to complex assemblies of multiple products and packaging layers, essential for distribution and sale.

Trade Items are the key entities in the commercial process, since pricing, stocklevels and other trade conditions are linked to trade items.

Key Elements of a Trade Item

• Product(s): Products are the main object that consumers/buyers want or need, such as a television, toothpaste, batteries or bread components. The product is the core item(s) intended for use or consumption, classified into:
  • Durables: Long-lasting items, e.g., electronics, furniture.
  • Consumables: Items consumed upon use, e.g., food, printer ink.
  • Disposables: Items used once or a few times before disposal, e.g., paper plates, wipes.
• Packaging Component(s):Materials added to protect, distribute, store, or enhance the usability of products, ranging from simple plastic wraps to elaborate boxes with custom inserts.

Nested Trade Items:

Trade items can be nested within larger units for efficient handling and shipping. For example:

• A Consumer Product Trade Item like a mobile phone in its retail packaging.
• A carton containing 12 such phones, considered a larger Trade Item. (Trade item containing 12 trade items)
• Multiple cartons might then be grouped onto a pallet, forming a Pallet Trade Item for distribution. (Trade item containing 48 trade items, each containing 12 trade items).

DPS, DPP and Data Carriers

• DPS (Dedicated Product Site): Each trade item and every Product can have a DPS (Dedicated Product Site), a digital representation providing detailed, up-to-date information. On the product level, only durables are eligible for a DPS as consumables do not maintain a distinct presence once consumed.
• DPP (Digital Product Passport): The DPP is an integral part of the Ecodesign for Sustainable Products Regulation (ESPR), which mandates the creation of a DPP system and corresponding DPP data for regulated product categories. Economic operators must provide a DPP for products falling within these categories. The DPP comprises a technical dataset linked to a product that includes detailed information pertinent to the product’s circularity. DPP data set can be made available for consumers/buyers via the DTS or can be read by machines for automatic processing. The DPP data set will cover several key sustainability metrics:
  • Supply Chain Footprint: Information on the carbon footprint and impact on deforestation.
  • Eco Performance: Data concerning the product's durability, energy efficiency, repairability, and potential for reuse.
  • Resource Recovery: Details on the product’s recyclability and compostability.
• Data Carriers: The DPS can be linked to a trade item, a durable product, or even a packaging component through various data carriers like QR codes, RFID tags, or digital watermarks (e.g. Digital Watermarks Initiative).

Relevance to Sustainability and Regulations: Detailed data about products and packaging is essential under regulations like the Digital Product Passport (DPP) and the Packaging and Packaging Waste Directive (PPWD). These aim to enhance transparency and encourage recycling, promoting a shift towards a circular economy.

Importance: Proper understanding and management of the distinctions and relationships between products and trade items, as well as their associated data, are crucial for compliance with environmental regulations and efficiency in the supply chain. This ensures all components of a trade item are managed effectively throughout their lifecycle, aligning with sustainability goals.