The invisible power of barcodes
Imagine a world without barcodes where every item in a warehouse is manually recorded, checkout lines stretch endlessly and supply chain tracking relies on handwritten logs. It sounds like a logistical nightmare, yet this is how businesses conducted business historically. Today, barcodes are so deeply embedded in modern operations that their impact often goes unnoticed.
From scanning groceries at a supermarket to tracking high-value shipments across continents, barcodes are the backbone of automated data capture. Beyond the familiar black-and-white stripes, barcode technology continues to evolve, adapting to new challenges in inventory management, production tracking and real-time logistics.
With advancements like QR codes and radio frequency identification (RFID) offering revolutionary benefits in data collection, businesses are increasingly turning to technology to optimise operations. In this two-part series, we explore the fundamentals of barcodes, QR codes and RFID, why contrast and material selection matter and how to choose the most appropriate solution for your business problem.
Barcodes: The secret language of automation
At its core, a barcode is a visual representation of data that a scanner translates into meaningful information. When a barcode is scanned, a sensor reads the pattern of bars and spaces, converting them into an electrical signal that a computer deciphers into product codes, serial numbers or other data.
Every barcode starts with a start character and ends with a stop character, allowing the scanner to recognise its orientation. Some formats also include a checksum character which verifies data accuracy and minimises errors. This built-in validation mechanism ensures reliable data entry, reducing the risk of costly mistakes in inventory management and order fulfilment.
The greatest strength of barcodes lies in their ability to automate business processes, replacing manual data entry with fast, accurate scans. They are widely used in warehouses for inventory tracking, in manufacturing for production control, and in retail for point-of-sale transactions. Their proven reliability and affordability make them the foundation of modern tracking systems.
UPC and EAN: Building blocks of modern retail identification
The Universal Product Code (UPC) represents an important standardisation in barcode technology, particularly in North American retail. Introduced in the early 1970s and first scanned commercially on a pack of Wrigley’s gum in 1974, the UPC provided a consistent method for product identification at point-of-sale. A standard UPC-A barcode consists of 12 numeric digits. The first six digits identify the manufacturer (known as the GS1 Company Prefix), while the next five digits represent the specific product. The final digit serves as a check digit, mathematically calculated to verify scanning accuracy. This system enables each product to have a unique identifier that can be recognised across retail systems. For smaller products with limited label space, UPC-E provides a condensed alternative. This shortened version encodes the same data in just eight digits by suppressing zeros making it practical for items like cosmetics, jewellery and small food packages where label space is limited.
The European Article Number (EAN), now officially renamed the International Article Number while retaining the EAN abbreviation, was developed shortly after UPC as an extension of the same concept. The primary difference is that EAN-13 uses 13 digits instead of UPC’s 12, with the additional digit often serving as a country or region identifier. In practice, UPC can be considered a subset of EAN, with EAN-13 codes often beginning with a leading zero when encoding UPC numbers.
Picking the right barcode: Why one size doesn’t fit all
Selecting the right barcode is like choosing the perfect tool for a job. Using the wrong one can lead to inefficiencies, delays and costly errors. In retail, businesses use either UPC-A (primarily in North America) or EAN-13 (common internationally) for standard product identification at checkout. Smaller products with limited label space may use UPC-E or EAN-8 for more compact identification while maintaining compatibility with point-of-sale systems. In logistics, EAN-14 (also known as GTIN-14) is the preferred choice for tracking shipments and pallets, enabling supply chain visibility at a macro level.
For manufacturers, tracking batch numbers, expiry dates or serial codes is essential. Here, GS1-128 is the industry standard, allowing additional information like production dates and weight to be embedded within the barcode, extending the capabilities beyond what standard UPC or EAN codes offer alone. Internally, businesses often use Code 39 or Code 128, both of which support alphanumeric data. Code 39 is a compact, durable option commonly used for inventory management, while Code 128 allows for a broader range of characters making it a versatile choice for industries requiring detailed product labelling.
UPC and EAN: Complementary standards for global commerce
The relationship between UPC and EAN illustrates how regional standards can evolve into complementary global systems. Their structural similarity, with EAN-13 essentially adding one digit to the UPC-A format has facilitated global commerce by allowing relatively straightforward compatibility.
This compatibility is practical for international trade. Manufacturers selling in multiple markets can typically use EAN-13 barcodes worldwide as modern point-of-sale systems are designed to read both formats. However, some legacy scanning systems in North America may still require UPC-A specifically, requiring occasional accommodation by international suppliers.
For businesses operating globally, understanding these regional variations is important. While standardisation offers significant operational benefits, differences in regional requirements need careful consideration when implementing barcode systems. Working with experienced system integrators helps businesses navigate these requirements and implement solutions that function reliably across different markets.
Linear barcodes in the digital age: Adapting to new retail environments
UPC and EAN barcodes have demonstrated notable adaptability as retail environments evolve. Originally designed for physical checkout counters, these linear barcodes now serve important functions in digital commerce and multichannel retail operations.
In e-commerce systems, UPC and EAN codes frequently serve as consistent identifiers that connect physical products with online listings. This helps ensure that consumers see accurate product information regardless of shopping channel. Some mobile applications utilise these barcodes to provide consumers with additional information like price comparisons or nutritional details when shopping in physical stores.
For inventory management, these standardised codes create a common reference point across different systems. When integrated with database systems, they enable businesses to track product movement and performance, helping inform decisions about stocking levels, product placement and replenishment timing.
While newer formats like QR codes offer expanded capabilities for consumer engagement and data storage, traditional linear barcodes continue to fulfil their core function of reliable product identification efficiently. Their widespread adoption across retail systems worldwide demonstrates the practical value of established standards in business operations.
2D barcodes: Advanced solution for modern tracking needs
The evolution from traditional linear barcodes to 2D formats represents one of the most significant advancements in tracking technology. 2D barcodes, particularly QR codes, Data Matrix and PDF417 have revolutionised how businesses manage inventory and assets.
Unlike traditional linear barcodes, 2D variants store information in both dimensions, dramatically increasing data capacity while reducing physical space requirements. A QR code, for instance, can store up to 7089 numeric characters or 4296 alphanumeric characters − hundreds of times more than conventional barcodes.
This expanded capacity enables businesses to embed comprehensive product information, including serial numbers, manufacturing dates, handling instructions and even web links to digital manuals or certificates of authenticity amongst others. The result is a more robust identification and tracking system that enhances both operational efficiency and customer experience.
QR Codes: The versatile powerhouse of 2D barcodes
QR codes have emerged as the most versatile and widely adopted 2D barcode format. Their explosion in popularity extends far beyond consumer applications like restaurant menus and contactless payments. In warehousing and manufacturing QR codes are becoming indispensable tools for advanced tracking and process automation.
The superior data capacity of QR codes allows businesses to create comprehensive digital records for each product or component. A single QR code can contain a product’s entire lifecycle information, from raw material sources and manufacturing processes to quality control results and shipping details.
Additionally, QR codes offer exceptional error correction capabilities. Even if up to 30% of the code is damaged or obscured, it can still be accurately scanned. This resilience makes QR codes ideal for harsh industrial environments where labels may be exposed to dirt, chemicals or physical damage.
Perhaps most importantly, QR codes require minimal specialised equipment to implement. Unlike costly proprietary systems, QR codes can be scanned using standard smartphones, scanners and tablets, reducing implementation costs and increasing accessibility. This compatibility with everyday devices has accelerated adoption across industries, from small businesses to enterprise operations.
Conclusion
In the world today, barcodes and QR codes are still the most widely used, low cost identification technology. From theatre tickets to computer processor chips, they are widely used in almost all industries in the world. This part of the article explained the format and standards used in the creation and use of barcodes. In part 2 of this article series we will look at the consideration for use of barcodes within industry.
About Gerhard Greef
Gerhard Greeff has qualifications in chemical engineering, production management and quality management. He has been involved in manufacturing since 1987 and with software development and integration in the manufacturing operations management (MOM) field since 1999. Gerhard believes that a properly designed and implemented MOM system will improve operational effectiveness and efficiency and can add tremendous business value for any manufacturing company.
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