What are barcodes?
Barcodes are visual, machine-readable representations of data in parallel lines (for linear barcodes) or patterns (for 2D barcodes). They are used to store and retrieve information about products, assets, or services.
How do barcodes work?
Barcodes encode data into a visual format that barcode scanners or mobile devices can read. When scanned, the barcode reader translates the black-and-white patterns into a readable format that connects to a database, providing details like product information, price, or stock levels.
What are the types of barcodes?
There are two types of Barcodes:
1D (Linear) Barcodes: The traditional, most common type, consisting of lines of varying widths. Examples include:
- UPC (Universal Product Code): Used mainly in retail
- EAN (European Article Number): Common in global retail
- Code 39: Used for inventory and identification in various industries
- Code 128: Often used in logistics and shipping
2D Barcodes: These can hold more information than 1D barcodes. Examples include:
- QR Code (Quick Response Code): Widely used in marketing, websites, and product tracking
- Data Matrix: Often used in small spaces for marking electronics or medical devices
- PDF417: Used for transport, ID cards, and government documentation applications
What are the benefits and uses of barcodes?
The uses of Barcodes may have manifold benefits as follows:
- Efficiency: Speeds up data entry and reduces human error compared to manual entry.
- Cost-Effectiveness: Inexpensive to generate and implement in inventory systems.
- Automation: Streamlines inventory management, product tracking, and sales processes.
- Real-time Tracking: Provides real-time data for stock levels, shipments, and sales.
- Accuracy: Ensures precise tracking of product information, eliminating errors related to pricing or inventory.
- Versatility: Used across various industries, from retail and healthcare to logistics and manufacturing.
What are the ways to use barcodes?
Here are five practical ways to use barcodes, which can significantly enhance the efficiency and accuracy of daily business operations:
- Inventory tracking: Barcodes are essential for tracking real-time inventory levels and product locations. In warehouses, staff can scan items as they arrive and are shipped, ensuring accurate stock management. Every SKU (Stock Keeping Unit) requires a barcode linked to a database with relevant product details, allowing businesses to maintain up-to-date and reliable inventory records.
- Asset tracking: Barcodes are commonly used to track company assets such as machinery, vehicles, and computers. Asset tracking software allows businesses to monitor asset status, location, and maintenance records.
- Invoicing: Barcodes on invoices streamline the tracking of accounts payable (AP) and accounts receivable (AR). Businesses can assign barcodes to invoices to link them to specific customers. Employees can scan the barcode when payments are made to ensure funds are credited to the correct account.
- Mail and shipping: Barcodes make tracking outgoing mail and packages easy. Businesses can scan the barcode before sending items to couriers to link monitoring information to a specific order. This tracking data can then be shared with customers, allowing them to monitor their shipments.
- Mail merges: Barcodes can be efficiently created using mail merges, which link a data source like a spreadsheet to a document, automatically populating barcode fields for a batch of items. This process saves time and effort compared to generating barcodes individually, making it an ideal solution for large-scale operations.
How do barcodes help businesses?
Barcodes offer a simple, reliable way to track inventory, crucial for managing revenue and expenses. For new or barcode-free businesses, choosing the right type and using them consistently provides a quick return on investment by improving inventory control, accuracy, and access to real-time data. Barcodes help businesses manage costs and enhance customer experience efficiently.
How to create barcodes
Barcodes can be created by following the steps:
- Basic barcode for small businesses: If your barcode needs are limited, you can create barcodes using a mail merge feature or free online tools. You can then print these barcodes on a standard printer. However, as your business grows, this method may become inefficient.
- Using software for barcode generation: A more scalable option is to utilise your existing accounting or inventory management software. Most systems have built-in features for generating barcodes and automatically linking them to specific product records in your database. To streamline label printing, it’s recommended to invest in a barcode printer, which is designed specifically for this purpose and is relatively affordable.
- GS1 registration: If your products are sold through third-party retailers or need global recognition, register your barcodes through GS1. GS1 assigns a unique company identifier, a GS1 Company Prefix, embedded in all your barcodes. The organisation charges an initial fee and an annual renewal fee, with costs depending on the number of barcodes required. You can access the GS1 Data Hub to create, manage, and export your barcodes as a member. GS1 supports UPC and EAN codes, along with various types of 2D barcodes, making it the international standard for barcode generation.
How do barcodes ensure transparency and traceability in the supply chain?
Barcodes play a vital role in improving supply chain transparency and traceability. By scanning barcodes at every stage of the supply chain, businesses can track products from manufacturing to delivery. Barcodes provide real-time data on inventory, shipments, and product locations, ensuring accuracy and reducing errors.
