What is barcode

Barcode Technology: A Comprehensive Guide

By Team TranZact | Published on Jun 28, 2023

Barcode technology emerged in the mid-20th century as a solution for efficient data collection and inventory management. It was born out of a necessity for efficiency in various industries. In 1952, Bernard Silver and Norman Joseph Woodland obtained the first patent for a barcode system.

Later, David J. Collins developed a barcode reader in 1969. Today, barcodes are ubiquitous, found on products, documents, tickets, and mobile devices.

TranZact - Best Inventory Management Software

Barcode technology revolutionizes industries like logistics, healthcare, manufacturing, and transportation, enabling efficient inventory control, supply chain management, and data capture. Barcodes on products, documents, and mobile devices facilitate tracking, authentication, and access to information, adapting and integrating with advancing technology for streamlined processes.

This article will draw light on what is a barcode, how barcode works, along with the types and advantages of barcodes. Let's understand more on this topic.

What Is a Barcode?

A barcode is a graphical representation of data that consists of parallel lines, dots, or other geometric patterns. It is a unique identifier for products, documents, or objects, allowing for quick and accurate data capture using barcode scanners or mobile devices.

They have become an essential tool for businesses, revolutionizing the way of tracking, authenticating, and managing data.

Types of Barcodes

Here are a few examples of the many types of barcodes available today, each with its unique purpose and application:

1. UPC (Universal Product Code)

The most widely recognized barcode, UPC is used in retail to identify products. It comprises a 12-digit numeric code and is typically found on product packaging. UPC barcodes streamline the checkout process and facilitate efficient inventory management.

2. QR (Quick Response) Code

Known for its square shape and matrix design, QR codes store a lot of information, including URLs, text, and multimedia content. QR codes have gained popularity in marketing and advertising, allowing users to quickly access websites, promotions, or additional product details by scanning the code with a smartphone.

3. EAN (European Article Number)

Like UPC, EAN codes are primarily used in Europe. They have a 13-digit numeric format and are commonly found on consumer goods. EAN barcodes enable accurate product identification and tracking, enhancing supply chain efficiency and facilitating international trade.

4. Code 39

Code 39 barcodes can encode alphanumeric characters, including letters, numbers, and some symbols. They are widely used in inventory management, healthcare, and government applications. Code 39 barcodes are versatile and can be easily generated and scanned by various barcode readers.

5. Code 128

Code 128 barcodes support encoding full ASCII (American Standard Code for Information Interchange) character sets, making them suitable for encoding large amounts of data. They are commonly used in logistics, shipping, and product labeling applications, where the barcode needs to contain detailed information such as product descriptions and serial numbers.

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How Are Barcodes Used in Different Industries?

Barcodes have become integral to various industries. Here is how different modern businesses use barcode technology:

1. Retail

Barcodes enable quick and accurate product identification at checkout, streamlining the purchase process and reducing human errors. They also facilitate inventory management, allowing retailers to track stock levels, automate reordering, and analyze sales data.

2. Logistics and Supply Chain

Barcodes are used to track and trace shipments, ensuring accurate inventory management and efficient logistics operations. They enable real-time visibility of products, optimize delivery schedules, and reduce shipping errors.

3. Healthcare

Barcode technology is employed to improve patient safety and medication management. They are used on medical supplies, medications, and patient wristbands, allowing healthcare providers to accurately identify patients, track medications, and reduce the risk of errors.

4. Transportation

Barcodes are utilized for ticketing, boarding passes, and baggage tracking in the transportation industry. They enable efficient check-ins, reduce queuing times, and facilitate accurate luggage handling and routing.

Advantages of Using Barcodes

Here are some advantages of using barcodes:

1. Efficiency

Barcodes streamline data entry and retrieval processes, saving time and reducing errors. Scanning a barcode takes seconds, eliminating the need for manual data entry and minimizing human mistakes.

2. Accuracy

Barcodes provide accurate and reliable data capture. By eliminating manual data entry, the risk of typos and transcription errors is significantly reduced, ensuring data integrity and improving accuracy.

3. Versatility

Barcodes can be applied to various surfaces and products, including packaging, labels, and digital screens. They can be easily integrated with existing systems, making them compatible with various applications.

4. Enhanced Customer Experience

With barcode scanning, checkout processes become faster and more efficient, reducing customer waiting times. Accurate inventory management ensures products are readily available, improving customer satisfaction.

Read Also - How to Calculate Average Inventory (With Formula and Example)

Barcode Symbology

Barcode symbologies can be mapped or arranged in several ways. Continuous symbologies encode characters as a black line, a space, and then another black line. As a result, it shows how the characters and numbers are read and interpreted on the barcode.

Barcode lines also differ in how they are encoded. A barcode system may use two widths or multiple widths to determine the character, depending on the barcode type. Linear barcodes are sometimes called 1D encoding or line codes.

Moreover, barcodes with more complex codes are called 2D or data glyphs. They have miniature dots that create patterns that are read in scanning. Unlike one-dimensional barcodes, 2D barcodes can be made of patterns, shapes, and modules inserted into a specific image.

Scanning Lasers for Barcodes

To read barcode technology data, it needs to be scanned and interpreted by a laser. Linear barcodes are read by laser scanners, which detect the reflected light from the barcode and differentiate between the contrasting black and white lines.

Since helium-neon lasers consume less energy and are more efficient, they are the most commonly used lasers. 2D and complex barcodes are difficult to read compared to linear barcodes and are not readable with a simple laser. Since the whole barcode image needs to be read, an all-encompassing reader is required. Scanners that read or scan 2D codes are the same ones used to scan documents at home or in the office. Despite their higher cost, they provide more data and information. Mobile phones and high-end applications also use them to encode URLs.

Read Also - Understanding Stock Keeping Units

How Do Barcodes Work?

Barcode technology works by encoding data into a series of parallel lines. Below is a brief explanation of the science behind barcodes:

The Science Behind Barcodes

Barcodes are based on the principles of pattern recognition and information encoding. The science behind barcodes involves three key components encoding, decoding, and scanning.

It also combines optics, pattern recognition, and data processing, enabling fast and accurate identification and data capture. With the advancement of barcode technology, scanning techniques have evolved, symbols have been improved, and decoding algorithms have become more sophisticated.

This continuous innovation has made barcodes a powerful tool for efficient data management and automation in various industries.

The Components of a Barcode

1. Bars and Spaces

The primary visual elements of a barcode are the black and white bars and spaces.

2. Quiet Zone

The quiet zone is an essential blank area that appears before the start and after the end of the barcode.

3. Start and Stop Characters

Barcodes often include special start and stop characters that indicate the beginning and end of the encoded data.

4. Check Digit

Some barcode symbologies include a check digit at the end of the encoded data.

5. Human-Readable Text

Alongside the barcode itself, human-readable text often displays the encoded information in plain text.

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How Barcodes Are Scanned and Read

Barcodes are scanned and read using specialized barcode scanners. These scanners emit light onto the barcode, which is then reflected to the scanner's sensor. The sensor captures the pattern of bars and spaces by analyzing the intensity of the reflected light.

This information is processed by the scanner's decoding software, which interprets the pattern according to the specific barcode symbology used. The decoded data is then outputted for further processing.

Common Types of Barcode Scanners

Here are some common types of barcode scanners:

1. Laser Barcode Scanner

A laser barcode scanner is a manual laser scanning device for decoding or reading barcodes.

2. Linear Imager Barcode Scanner

A linear imager barcode scanner captures and decodes barcodes using an image sensor.

3. 2D Area Imager Barcode Scanner

The 2D area imager barcode scanner can read 2D and linear barcodes, like QR and Data Matrix codes.

4. Camera-Based Barcode Scanner

A camera-based barcode scanner utilizes mobile phones, and tablets, to read to decode barcodes.

5. Handheld Barcode Scanner

A handheld barcode scanner is a portable device used manually to scan or read barcodes.

6. Pen-Type Barcode Scanner

A pen-type barcode scanner resembles a pen or a wand used to scan or read barcodes.

7. CCD Barcode Scanner

Charge coupled device (CCD Barcode Scanner) uses small light sensors to capture and decode barcodes.

8. Fixed-Mount Barcode Scanner

A fixed-mount barcode scanner is also called a stationary barcode scanner that is fixed in one position and automatically scans barcodes as they pass through it.

9. Wireless Barcode Scanner

Wireless barcode scanners transmit barcode data to computers and mobile devices without requiring physical cables.

Read Also - Understanding ERP Modules: Types, Features and & Functions

Benefits of Barcode Technology

Barcode technology offers the following benefits:

1. Increased Efficiency in Inventory Management

Barcode technology enables faster and more accurate inventory tracking, reducing the time and effort required for manual inventory counts.

2. Improved Accuracy in Data Collection

Barcodes eliminate the need for manual data entry, reducing human errors and ensuring accurate and reliable data collection for various purposes, such as sales, inventory, and customer information.

3. Reduced Human Error and Labor Costs

By automating data capture, barcodes significantly reduce human errors and associated labor costs, improving productivity and cost savings.

4. Enhanced Customer Experience

Barcode scanning speeds up checkout processes, reduces waiting times, and minimizes errors, providing customers with a seamless and efficient shopping experience.

Application of Barcodes

Here is how barcodes are applied in different industries:

1. Retail and Consumer Goods

Barcodes are extensively used for efficient product identification, streamlined checkout processes, and accurate inventory management, enabling retailers to improve operational efficiency.

2. Healthcare Industry

Barcodes are essential to the healthcare industry. They help healthcare professionals verify patient identities, reduce medication errors, and enhance healthcare delivery.

3. Logistics and Transportation

Barcodes are instrumental in logistics and transportation for various operations. They enable accurate package labeling, efficient sorting, and real-time tracking, improving shipment visibility and streamlining logistics processes.

4. Manufacturing Industry

Barcodes enhance inventory control. They facilitate accurate tracking of raw materials, work-in-progress, and finished goods and ensure seamless inventory management.

5. Government Agencies and Public Utilities

Barcodes find applications in various government agencies and public utilities, such as driver's licenses, identification cards, utility bills, and parking permits. They enable accurate data capture, improved security, and streamlined administrative processes.

Read Also - What Is Manufacturing Overhead?

Future of Barcode Technology

Let's look into the future trends and uses of barcode technology:

Advances in Barcode Technology

Advances in barcode technology have led to significant improvements in recent years. Key advancements include the rise of 2D barcodes like QR codes and integration with mobile devices for convenient scanning.

Further, Radio Frequency Identification (RFID) technology for enhanced tracking, real-time data capture, and analytics capabilities improved durability and security features. This has led to seamless integration with business systems for streamlined workflows.

These advancements have expanded the applications and functionality of barcodes, providing businesses with increased efficiency, better data insights, and improved customer experiences.

Potential Uses of Barcodes in the Future

The following is a list of the potential use cases of barcodes in the coming years.

1. Contactless Payments

Barcodes can be leveraged for contactless payment systems, allowing customers to make secure transactions with their smartphones or wearable devices.

2. Smart Packaging

Barcodes embedded in packaging can provide real-time information about product freshness, expiration dates, and storage conditions, ensuring consumer safety and reducing waste.

3. Augmented Reality (AR) Integration

Barcodes combined with AR technology can unlock interactive experiences, such as product demonstrations, virtual try-on, and immersive storytelling.

4. Internet of Things (IoT) Integration

Barcodes can be integrated with IoT devices to enable seamless communication and data exchange between physical objects and digital systems. This facilitates smart home automation, inventory management, and asset tracking.

Integration of Barcodes With Other Technologies

Let's find out more about how barcodes integrate with other technologies:

1. RFID (Radio Frequency Identification)

Combining RFID technology with barcodes can create hybrid systems for enhanced tracking and inventory management, leveraging the benefits of both technologies.

2. Cloud Computing

Barcodes can be integrated with cloud-based systems, enabling real-time data capture, storage, and analysis, providing businesses with centralized and accessible barcode data.

3. Artificial Intelligence (AI)

Future technology, such as AI-powered image recognition algorithms, can enhance barcode scanning capabilities, improving accuracy and speed in reading barcodes even in challenging environments.

4. Blockchain Technology

Barcodes can be linked to blockchain networks to ensure data integrity, transparency, and secure traceability throughout supply chains, authentication processes, and asset management.

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Challenges of Barcode Technology

Here are some challenges of barcode technology:

1. Security Concerns

The technology may face security risks such as counterfeit barcodes or unauthorized modifications, necessitating additional measures like encryption and authentication to ensure barcode integrity and data security.

2. Compatibility Issues

Different barcode symbologies and scanning technologies can create compatibility challenges, requiring businesses to ensure their barcode systems and scanners are compatible to avoid scanning errors and data inconsistencies.

3. Environmental Impact

Barcode labels, particularly those made of non-recyclable materials, can contribute to environmental waste. Employing sustainable labeling options and promoting barcode recycling initiatives can help mitigate the environmental impact of barcode technology.

Implementing Barcode Technology

Implementation of barcode technology requires the following steps:

  • Identify Needs and Objectives
  • Choose Barcode Symbology
  • Barcode Generation
  • Labeling and Placement
  • Barcode Scanning Equipment
  • Integration with Systems
  • Staff Training
  • Testing and Validation
  • Ongoing Maintenance and Evaluation

Best Practices for Using Barcodes

  • Standardize barcode symbologies and formats across your organization.
  • Ensure barcode labels are clear, readable, and placed in easily scannable locations.
  • Regularly inspect and maintain barcode scanners and equipment.
  • Train employees on proper barcode scanning techniques and procedures.
  • Implement barcode verification processes to ensure barcode quality and readability.

Common Mistakes to Avoid When Implementing Barcode Technology

  • Inconsistent barcode symbologies or formats within the organization.
  • Poor barcode label placement or readability.
  • Neglecting regular maintenance and calibration of barcode scanners.
  • Insufficient training for employees on proper barcode scanning techniques.
  • Failure to validate barcode data for accuracy and integrity.

Learn How to Use Barcodes for Your Business With TranZact

Barcode technology has revolutionized numerous industries, offering efficient and accurate data capture. However, it is crucial to consider challenges such as security concerns, compatibility issues, and environmental impact while implementing barcode systems.

Harness the potential of auto-prompts with barcode technology on TranZact as it enables you to streamline inventory management and minimize manual effort.

FAQs on Barcode Technology

1. What is the purpose of using barcodes?

Barcodes are used to efficiently and accurately identify and track products, assets, or items in various industries. They streamline inventory management, sales transactions, supply chain logistics, and asset tracking.

2. How are barcodes scanned?

Barcodes are scanned using barcode scanners or readers. These devices emit a light source (e.g., laser or LED) that reflects off the barcode's contrasting lines. The scanner captures the reflected light and converts it into electrical signals, decoded to retrieve the encoded information.

3. Can barcodes contain different types of data?

Yes, barcodes can encode various types of data. While some barcodes encode numeric information only, others can encode alphanumeric characters or symbols. They can even store large amounts of data, such as URLs or product descriptions. The type of barcode symbology used determines the data format it can accommodate.


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