Barcodes inventory: What is a barcode inventory system?

A barcodes inventory system uses barcodes, hardware, and software to track and collect data for improved inventory management. Barcodes, when scanned, provide tons of important information (like location, value and quantity on hand) about the products you stock

What Are Barcodes?

Barcodes are a visual representation of numbers, letters, and symbols. The characters are encoded in black and white areas.

Barcodes are easy to create. They can be made in Excel, Word, or nearly any PC or Mac application that allows you to change fonts; via online barcode generators; or via dedicated inventory management programs.

Six common barcodes explained

Barcode symbols are used to encode information such as product numbers, serial numbers and batch numbers. Barcodes can be scanned electronically using laser or camera-based technology that allows goods to be tracked throughout the supply chain.

There are over 100 various barcode symbols which are typically either one or two-dimensional. The linear, or one-dimensional barcode, is the more readily recognized type and is characterized by parallel lines of varying widths and spacings. In contrast, a two-dimensional barcode, including the newer QR codes, use squares or rectangles and contain numerous small, individual dots and geometric patterns. Common barcodes consist of the following types:

1D barcodes

Inspired by the dots and dashes of Morse code, the original 1D barcode creates specific patterns from line widths and spacing to represent stock keeping unit information.

Universal Product Codes (UPS)

Largely used in the United States, United Kingdom, Australia and New Zealand

Consisting of black bars and a unique set of numbers the UPC-A variation encodes 12 numbers while the UPC-E variation encodes six

Codes are used in the retail and wholesale distribution industries

Beneficial for order entry processes, point of sale transactions and inventory

European Article Numbers (EAN)

As the name suggests, EAN codes are primarily used throughout Europe

Like UPC barcodes, the default EAN-13 comprises of 13 digits, or for application on smaller products where space is limited, the EAN-8, or eight-digit version, is used

Codes are utilized in the retail and wholesale distribution industries

Beneficial for order entry processes, point of sale transactions and inventory management

Code 39

The first alpha-numeric barcode to be developed, Code 39 is suitable for encoding general purpose alphanumeric data and is widely used in non-retail environments

Allowing the use of both digits and characters, the Code 39 barcode is so named because it initially encoded only 39 letterings although in more recent versions this character set has been increased to allow for 43

While utilized across many industries Code 39 barcodes are prominently used in government, manufacturing and logistics operations

Code 128

Robust and compact, with the ability to store diverse information, these codes are geared toward supply chain applications such as, labelling components with shipping container serial numbers and data

Generally used for ordering and distribution in the transportation and logistics industries

Codes are used for product identification, freight shipments, receiving and tracking assets and inventory management

QR codes

QR codes have become increasingly common, and can be read by most phones.

2D barcodes

Used in a wide range of industries, 2D barcodes can hold significant amounts of information. One benefit of using a 2D code is that they remain reasonably legible, even when imprinted on to products or applied at a reduced size.

Aztec codes

Unlike alternative 2D barcode types, Aztec codes take up less space than other matrix barcodes as they do not require the blank margin around the barcode to indicate where it starts and ends

These codes are generally applicable to transportation and are relevant to ticketing procedures such as generating boarding passes in the airline industry

Even with poor resolution, the barcodes can still be decoded making them useful in deciphering poor quality printed tickets or those that are presented via a mobile phone app

Quick response code (QR)

QR codes consist of black bars, geometric shapes and a unique set of numbers representative of UPC-A and UPC-E coding

With rapid readability, they are flexible in size and have a high fault tolerance and are largely consumer focused

These 2D matrix barcodes apply four different modes of data: alphanumeric, numeric, binary and the Kanji system of Japanese writing using Chinese characters

Commonly used for product identification, tracking and marketing applications and in inventory management

QR codes are not compatible with laser scanners and can only be used with camera-based scanning technology

How Do Barcodes Work?

Businesses use barcode inventory management systems to assign a number to each product they sell. They can associate several data points to the number, including the supplier, product dimensions, weight, and even variable data, such as how many are in stock.

Barcodes can also be assigned to locations, such as a bin on a shelf in a warehouse or stockroom. When a product is placed in the location, a worker can scan both the product and the location codes, and the inventory system will record the location data.

The benefits of using barcodes on product labels

Not all labels are created the same, but they can be built for any situation with some better suited for freezing cold environments and others for hot or humid environments. They can be attached to all shapes and sizes of products, printed on paper or synthetic materials, with different label laminates such as matte, high gloss, coated or uncoated.

Custom barcode labels have many benefits and can be formulated specifically to meet your unique business needs. They are relatively cheap to produce, you can just create, print and use the barcode labels that suit you best, from large and durable, custom coloured, oddly shaped or even chemical-resistant.

Barcodes and product labels can also be created with your company logo embedded within and they may contain brand colours and graphics to improve awareness and recognition.

Professional labelling solutions make label changes and updates easy and help ensure compliance on items where labels are required to meet certain standards.

Product labelling can create efficiencies at the supplier level by sharing and updating labels with supply partners to avoid costly hold-ups when receiving items that often need to be re-labelled before moving into production.

With the right labelling solution, you can share label templates with suppliers and other trading partners so that incoming goods are labelled and formatted the way you want them. Suppliers can simply run off labels pre-populated with the information you need, preventing delays when supplier materials arrive.

Different types of product labels

While barcode labels are the most commonly applied across a range of product types there are other custom printed labels used in different industries. These product labels usually include a barcode label but do not require scanning to read and offer consumers product information that has the potential to influence purchasing decisions.

These include:

Food and nutritional labels that come with their own set of rules and may even have regulatory standards to meet. Food labels are generally printed on the packaging boxes and include product ingredients, expiry dates, consumption and calorie charts as well as information regarding ingredients that may cause an allergic reaction such as seafood, peanuts or gluten.

Pharmaceutical labels, just like food labels, have strict regulatory labelling requirements dictating product-specific labels that may include ingredients, precautionary measures manufacturing and expiry dates. Failure to comply with any labelling standards can result in fines and product returns.

Cosmetic labels can be printed in different colours or include graphic elements to set them apart from competitor products. Cosmetic labels can be created as stickers and adhered to standard packaging and cardboard boxes. Customised labels for cosmetics and cosmetic boxes make products easy to recognise and can include information regarding manufacturing ingredients, how to use and product testing specifics.

Shampoo and soap labels can be printed with instructions and with special ingredients that have been added in the manufacturing to provide greater benefits of the shampoo or soap products. These labels can be coated with gloss or matte material making them waterproof.

Ultimately, an enterprise-wide labelling solution, that is tightly integrated with existing systems will unify your entire labelling process and provide greater visibility and control to quickly adapt to ever-changing label requirements.

You can think of a barcode as you would the license plate on a car. ABC123 (an example plate number) has no real connection to what make, model, or year a car is or who owns it. However, the number is stored in a database and refers to your car’s registration information (including your name and address), any outstanding tickets, and more. Likewise, when you scan a barcode on an item in a business’s warehouse, you’ll receive information on the product itself, whether it’s red XL t-shirt or a replacement piston for a tugboat engine.

See more: https://barcodelive.org/barcoding-in-inventory-management

Barcode types

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