“Beep” has now become a universal sound for scanning products at cash counters; however, have you ever wondered what causes this sound? In this blog, we will try to understand the secret behind this sound and decode its importance.
Introduction
The presence of a barcode is what causes this sound at checkout counters. In 1974, the first product was scanned using the UPC guidelines and today this concept has revolutionised business processes, making the selling process streamlined, efficient, and transparent. For consumers, barcodes act as a source of authentic information making it exceptionally important for everyone to understand them.
By the end of this blog, you will have a general overview of “What is the structure of a barcode?“, “How do barcodes work?”, and “What are the use cases of barcodes?”
What is a Barcode Number?
A barcode is embedded with an identification number called Global Trade Identification Number (GTIN) that is allotted by GS1 to uniquely identify products in the market. Refer below to know the types of barcodes used in the industry –
1D Barcode
- GTIN-13 (EAN-13) Barcode – The EAN-13 barcode is an internationally used and accepted barcode symbology that comprises of 13-digits.
- GTIN-8 (EAN-8) Barcode – The EAN-8 has 8 digits and is used for smaller products where space is very limited.
- GTIN-12 (UPC-A) Barcode – The UPC-A barcode symbology is widely accepted and recognised but used specifically in Northern America. It consists of a 12-digit Barcode Number.
- UPC-E Barcode – The UPC-E is a compact version of the UPC-A barcode. It has an 8-digit Barcode Number and is used for smaller packages.
- GTIN-14 (GS1-128) Barcode – The GS1-128 barcode is used in logistics units. It encodes GTIN or Serial Shipping Container Code (SSCC) and can contain additional information such as batch number, expiry date, weight and serial numbers.
2D Barcode
- QR Code – A QR code is a type of 2D barcode that can be scanned with phones to access product information. It can encode more information in comparison to a 1D barcode and also can direct the user to the website page via URL.
- Data Matrix Barcode – The Digital Matrix barcode is used primarily in the healthcare industry and can encode a large set of information.
The Anatomy of Barcode Numbers
Structure – A barcode is composed of spaces that vary in width and parallel lines. It has “quiet zones” (clear areas without any symbols or marks) before and after the first and last bar so that scanners can recognise the barcode easily.
Encoding – The barcode structure is made up of four basic components – company code, country code, product code, and check digit. All these digits combine to form a unique identification number that is encoded in the barcode. Encoding in barcodes is carried out depending on the type, amount of information, and space available. The scanner helps decode the barcode’s data through a system which interprets various product information.
- Country Code – A country code is a prefix that indicates the manufacturing company is registered with which GS1 member organisation. 890 is the country code for India. Country code serves no guarantee of the product being manufactured in the same country, they can be manufactured anywhere in the world.
- Company Code – A company code is a set of unique numbers that identifies the company and is allotted only by a GS1 member organisation. Every member company has a different company code for its unique identification.
- Product Code – Product code comes right after the company code and is provided by the company to uniquely identify its products. The length of the product code is determined based on the number of barcodes the company is registered for.
- Check Digit – The check digit is a computer digit that is calculated using a mathematical algorithm where every digit is multiplied by its weight alternatively between 3&1. The results are then added to form a sum which is then subtracted from the nearest or higher multiple of 10.
Validation – Every barcode number contains a check digit which ensures the barcode is correctly composed. The check digit validates the barcode number and confirms its accuracy.
In India, barcodes starting with 890 are the only authorised barcodes as they offer interoperability and uniqueness to every product. GS1 India is the only authority in the country that can issue these barcodes to companies.
Applications of Barcode Numbers
Barcode numbers serve as a basis for the uniqueness and interoperability of products and services in both domestic and international markets. Below provided are some of the applications of a Barcode Number –
- Retail – The scanning of barcodes facilitates efficient inventory management in the retail sector. In addition, they enable fast scanning of products at checkouts resulting in quick transactions. With barcodes, retailers charge consumers correct prices as information is decoded in their system when barcodes are scanned. This further helps in improving order fulfilment processes and reduces human errors.
- Logistics – Barcodes in the logistics industry facilitate the tracking of goods on a real-time basis. This makes the journey of goods more transparent enhancing the efficiency of the supply chain operations.
- Healthcare – The adoption of 2D barcodes in the healthcare industry is making patient safety more robust. The healthcare industry is becoming more advanced as 2D barcodes facilitate the track & trace of medical products.
- Consumer Benefits – Consumers get access to the correct information provided directly by the manufacturers of the products. This empowers them to make sensible buying decisions and builds trust and credibility.
Common Misconceptions and FAQs
Misconception 1 – Any company is authorised to issue GS1 Barcodes.
Only GS1 India is authorised and can issue structured and standardised barcodes to companies in India. Barcodes issued by GS1 are unique and accepted worldwide.
Misconception 2 – Unique identification can only be provided to products.
Unique identification can be allocated to not only products but also to legal and functional entities, people, documents, returnable assets, coupons, freight consignments and so on.
FAQ 1 – Do I need a barcode to start selling on Amazon?
If you are using Fulfilled by Amazon (FBA) then you will need barcodes to track and identify your products throughout the fulfilment journey. Every item sent to the Amazon Fulfilment Center requires a barcode. Amazon recognises GS1 barcodes and hence you can provide GS1 barcodes to sell your products there.
FAQ 2 – How do I buy a barcode in India?
To buy barcodes you simply have to get registered with GS1 India for barcodes on a renewal-based subscription and pay the fees. Following this you will receive a subscription allotment letter within 7-10 working days along with your Global Company Prefix (GCP). This GCP can be used to generate identification keys such as GTIN, Global Location Number (GLN), Serial Shipping Container Code (SSCC), etc.
Future Trends in Barcode Technology
Advancements – Businesses will move forward to accept 2D barcode technology. As highlighted by GS1 Global, by 2027 all retail products will have 2D barcodes on them, facilitating track & trace of products. In the future, businesses will also embrace blockchain technology.
Impact – The adoption of 2D barcode technology will allow businesses to provide more detailed information about their products. 2D barcodes provide digital links that can take people directly to the source website. Blockchain technology will improve security at all levels of the supply chain and will help foster greater control over information.
Conclusion
Barcodes act as a bridge between consumers and manufacturers allowing a transparent supply of information on products throughout the supply chain. Businesses that provide barcodes on their products can better retain customers and improve customer satisfaction by providing them with detailed product information. Businesses are encouraged to adopt barcode technology to expand globally and build long-term relationships with suppliers, manufacturers, retailers, and consumers.