What is a Barcode?

Barcodes provide an easy method of encoding text information that is easily read by barcode scanners and allows data to be collected quickly and accurately. A barcode consists of a series of parallel, adjacent bars and spaces. Predefined bar and space patterns are used to encode small strings of character data into a printed symbol. Barcodes are like a printed version of Morse code with narrow bars (and spaces) representing dots, and wide bars representing dashes. A barcode scanner decodes a barcode with a photodiode which produces an electronic signal that exactly matches the printed barcode pattern. This signal is then decoded back to the original data by inexpensive electronic circuits. 

The Purpose of a Barcode

The purpose of barcodes is to identify a labelled item with a barcode containing a unique number or character string. Barcodes are typically used with a database application where the data encoded in the barcodes is used as an index to a record in the database that contains more detailed information about the item that is being scanned. For example, when a shop assistant scans a barcode, the barcode data is fed to a computer that looks up the information in a central database and returns more detailed information about the item such as description and price. Therefore the shop doesn’t need to price tag all items in the store and they can also change the price by modifying a single entry in the central database. They can also track how much of a product is currently in stock so that they know when to re-order.

Barcodes also provide a quick and error free means for inputting the data into an application running on a computer. By using barcodes, the potential for errors from manual data input is eliminated. Another typical application for barcodes is therefore for inputting data without having to type. For example you could encode name or address data in a barcode on an ID badge and then scan the ID badges to input a person’s name into a computer program instead of typing the information.

A barcode enables the rapid and un-ambiguous identification of products, assets, documents and people. Using a barcode can greatly reduce human errors in data entry and processing, eliminate ambiguities caused by inconsistent approaches to product labelling and mistakes in reading handwriting.

Benefits

In point-of-sale (POS) management, the use of barcodes can provide very detailed up-to-date information on key aspects of the business, enabling decisions to be made much more quickly and with more confidence. For example:

• Fast-selling items can be identified quickly and automatically reordered to meet consumer demand,
• Slow-selling items can be identified, preventing a build-up of unwanted stock,
• The effects of repositioning a given product within a store can be monitored, allowing fast-moving more profitable items to occupy the best space,
• Historical data can be used to predict seasonal fluctuations very accurately.
• Items may be repriced on the shelf to reflect both sale prices and price increases.

Besides sales and inventory tracking, barcodes are very useful in shipping/receiving/tracking.

• When a manufacturer packs a box with any given item, a Unique Identifying Number (UID) can be assigned to the box.
• A relational database can be created to relate the UID to relevant information about the box; such as order number, items packed, qty packed, final destination, etc…
• The information can be transmitted through a communication system such as Electronic Data Interchange (EDI) so the retailer has the information about a shipment before it arrives.
• Tracking results when shipments are sent to a Distribution Center (DC) before being forwarded to the final destination.
• When the shipment gets to the final destination, the UID gets scanned, and the store knows where the order came from, what's inside the box, and how much to pay the manufacturer.