Did you know before the 1970s cashiers used to manually enter product details into mechanical cash registers? There was no centralised system to map the detailed inbound and outbound flow of goods, instead, they used to analyse each transaction through the physical registers. Although some businesses like local ration shops follow the traditional approach of maintaining a physical cashbook, it is no longer the most accurate and feasible option.  

A lot has changed since then; for starters, barcodes have taken the retail world by storm by offering unique product identification that can be interpreted electronically. In this blog, we will learn how barcodes have revolutionised retail processes and streamlined operations. Readers will understand the hidden meaning behind the barcode in full form and the impact created by barcodes in today’s world.

What is a Barcode?

As the name suggests – barcode full form is Bar Automated Reader Code. They are machine-readable data carriers that can encode product information in a structured and standardised manner. Systems cannot read any such thing that does not contain information in computer language, which is why barcodes were introduced. While purchasing goods all of us must have come across them several times. At the checkout counter, it is impossible to scan a product without the presence of a barcode. We will learn the benefits and functions of barcodes in the later section of this blog. 

There are two types of barcodes used across the world –

1-Dimensional and 2-Dimensional. 1D barcodes can carry a very limited set of information and is a rectangle-shaped code composed of black and white parallel lines with varying widths in between. 2D barcodes on the other hand can carry extensive information about products along with websites or product links. Unlike 1D barcodes; a 2D barcode can easily be scanned through mobile phones.

Below mentioned are the types of 1D barcodes –

1. GS1-128 – A type of 1D barcode which is used on higher levels of packaging typically in shipping and general distribution. A GS1-128 barcode can encode different data attributes such as batch number, serial number, expiration date, manufacturing data or country of origin.

2. ITF-14 – A type of 1D barcode which is comparatively larger than other barcodes and is printed on corrugated materials/boxes. It encodes GTIN in a 14-digit format. An ITF-14 barcode has a thick black outer border, called the bearer bar.

3. EAN-13/GTIN-13 – EAN standards for European Article Number and GTIN is Global Trade Item Number. They both are barcode symbologies. They encode 13 digits which help in the unique identification of products across the world. 

4. EAN-8/GTIN-8 – It is a type of EAN/GTIN which only encodes 8 digits. It is applied to smaller packages which have space constraints. 

5. UPC-A – UPC stands for Universal Product Code, similar to EAN/GTIN, UPC is also a type of barcode symbology which is used primarily to provide unique identification to products sold in North America. 

6. UPC-E – It is a compressed version of UPC-A barcode symbology. Similar to EAN-8/GTIN-8, UPC-E also constitutes 8 digits and is used on small products where space is very limited.

Below given are the types of 2D barcodes –

1. QR Code – It can contain a GS1 digital link allowing users to scan the barcode through their mobile phones and access useful and accurate information. 

2. GS1 Data Matrix – This type of 2D barcode is mostly used in the healthcare industry. GS1 Data Matrix is a square or rectangle matrix and can encode up to 2335 alphanumeric characters. It can be easily applied to small products due to its compact size.

How do Barcodes Work?

All types of barcodes work when scanned across the supply chain levels by stakeholders. They can be read by scanners or even through mobile phones, in case of a QR code. When a barcode is kept under the radar of a scanner it retrieves information stored in the barcode and directs it to the computer screen. The barcode carries a unique product identification, which can be 13,12,8 or 14 digits long. To understand how barcodes work, let’s first understand the meaning behind this number.

In India every barcode starts with the same prefix – ‘890’, this is the country code assigned by GS1 Global to GS1 India. The first three digits of every GTIN is the Country Code. Further on we have the Company Code which is assigned by GS1 India (or any other member organisation) to the company registered for barcodes to uniquely identify the company. Next, we have Product Code which is provided by the company as a product’s unique identification, the numbers may vary depending on the coding needs of the company. Lastly, we have the check digit, a single digit which validates the complete GTIN.

Now, the scanner reads this information and presents it to the user. This unique identification number facilitates information on the country, company and product associated with that barcode.  

At point-of-sale, systems are already integrated with the local product databases. This means when a product barcode is scanned at a checkout counter, the barcode facilitates accurate information flow. The scanner reads the barcode and the system fetches details associated with the product like price and name.

Impact of Barcodes on Industries

Barcodes have revolutionised industries across the globe. From retail, and transportation to healthcare, each of them continues to benefit from the implementation of barcodes. Let’s learn how each of these industries has advanced with the adoption of barcodes.

Healthcare Sector – In India, the healthcare sector is one such industry which has directly benefited from barcodes. The most recent example is the application of QR codes on the top 300 pharma drugs manufactured and sold in India.

Transport and Logistics – Barcodes along with RFID technology are being used in ammunition tracking, rail wagon tracking, etc. One major use case of barcodes in the Indian transport and logistics sector is Fastag. The chip on Fastag ensures the uninterrupted flow of vehicles on highways.

Retail Sector – Barcodes were introduced in the retail sector with the purpose of providing unique identification to products; however, they are doing more than that. With barcodes manufacturers can carry targeted product recalls, efficiently manage inventories, streamline operations, foster greater transparency in the process and achieve traceability.

Conclusion

Barcodes have significantly helped optimise operations and streamline processes. Customers now enjoy faster checkouts which has resulted in achieving higher satisfaction levels for businesses. In future, the use of RFID technology and blockchain technology will play an important role in taking this unique identification to an advanced and more secure level.