Retail Bar Coding Basics

a Tutorial

Is bar coding necessary?

Reasons for UPC bar codes.• Want to sell your products via retail stores.• Products are sold at checkout counters.• Product is a food item or consumer retail item.

Reasons UPC bar codes not necessary• Bar codes are only for internal use such as

inventory• Products are not sold via retail stores.• Products are not sold at checkout counters

History of Retail Bar Codes

• 1932 Wallace first to suggest automated checkout

• 1948 Drexel University begins research into auto ID method

• 1949 Woodland & Silver build prototype scanner.

• 1952 Patent granted Woodland & Silver for Auto ID method

• 1966 First commercial use of bar codes

• 1970 First commercial Auto ID product

• 1972 Kroger stores begin using ‘bulls-eye’ bar code

• 1973 Uniform Product Code standard adopted

• 1974 First UPC scanners commercially marketed

• 1974 First product (Wrigley Gum) UPC bar coded.

What is a Bar Code?

• A bar code (barcode) is similar to “Morse Code” in that they both encode character information.

• Morse Code was developed in 1935 and consists of s code based on short and long electrical impulses.

dit  1 unit of time

 dah  3 units of time

 pause between letters

 3 units of time

 pause between words

 7 units of time

What is a Bar Code?

What is a Bar Code?

CharacterValue

OddParity

EvenParity

0 0001101 0100111

1 0011001 0110011

2 0010011 0011011

3 0111101 0100001

4 0100011 0011101

5 0110001 0111001

6 0101111 0000101

7 0111011 0010001

8 0110111 0001001

9 0001011 0010111

EAN-13 Symbology Encoding

What is a Bar Code?

Step 1: Designate the least significant digit position as odd.

3 1 4 5 7 9 0 1 2 5 8

O E O E O E O E O E O

Step 2: Sum all the digits in the odd (o) positions

3 + 4 + 7 + 0 + 2 + 8 = 24

Step 3: Multiply the result by 3

24 * 3 = 72

Step 4: Sum all the digits in the even (E) positions.

1 + 5 + 9 + 1 + 5 = 21

Step 5: Add the result of Step 2 with the result of Step 4.

72 + 21 = 93

Step 6: Subtract from the next higher multiple of 10.

100 - 93 = 7.

In this example, the check digit is 7.

Check Character Calculation (UPC)

How a Bar Code Works

• Light from the scanner (laser, LED, or other) reflects off the label back to a sensor in the scanner

Bar Code Symbologies

• The manner in which the bars and spaces are encoded define the bar code symbology

•Codabar•Code 128•Code 3 of 0•Code 93•EAN 13•EAN 8•ISBN

•Interleaved 2 of 5•MSI / Plessey•Postal / Postnet•UPC A•UPC E•PDF-417

Global Trade Identification Numbers

A GTIN (Global Trade Item Number) is the EAN.UCC System identifier used for the unique identification of trade items worldwide within the EAN.UCC System.

Trade Items refers to any product or service upon which there is a need to retrieve pre-defined information; this product or service may be priced, ordered, or invoiced at any point in the supply chain.

Uniform Code Council & EAN

• EAN.UCC is worldwide system • EAN.UCC is comprised of member organizations (M.O.).• U.C.C. is the U.S. member organization.

EAN.UCC

M.O.M.O.

U.C.C.

Key Benefits

• Supports worldwide flow of trade goods and services

• Uniquely identifies trade items at all levels of packaging.

• Delivers trade item data in a consistent format and structure.

• Simplifies supply chain management.

• Employs the globally accepted and utilized EAN.UCC System

whose language is understood by the global marketplace.

Why GTINs?

• Allow system-to-system interaction

• Speed processes by enabling end-to-end automation

• Lower costs, while reducing errors

• Reduce the risk of system incompatibility

• Protect technology investments by removing the limitations

of closed, proprietary systems and solutions

• Enable the optimization of supply chain management

practices

• Eliminate supply chain roadblocks and bottlenecks

Data Structures

1 2 3 4 5 6 7 8 9 10 11 12 13 14

UCC-12 (UPC) 0 0 D D D D D D D D D D D C

EAN/UCC-13 0 D D D D D D D D D D D D C

EAN/UCC-8 0 0 0 0 0 0 D D D D D D D C

EAN/UCC-14 D D D D D D D D D D D D D D

0 = leading zero; D = digit, C = check digit

A GTIN has a 14-digit data structure though its data carrier (bar code) may contain only 12-digits (the U.P.C.), 13-digits (EAN-13) or 8-digits (EAN-8). The GTIN is defined as a 14-digit number to accommodate all the different structures.

Bar code labels

EAN-13

• International business• Sell to national chains

UPC-A

• local business

Outsource?

Outsource• Large quantities• Special materials• Color, coated, durable• Large budget• High quality,

hardware verifier required

Do it yourself• Small quantities• Std. paper labels• B/W, stock labels• Small/No budget• Reasonable quality,

standard scanner verification

UPC Bar Codes

• Used in US markets• 1st 6 digits are company

prefix• Next 5 digits are trade

item number• Last digit is calculated

check digit

EAN-13 Bar Codes

• EAN-13 bar codes used in European markets

• Leading zero affixed to 6-dit company prefix

• Next 5-digits are trade item number

• Last digit is check digit

EAN/UCC-128 Bar Codes

• Used for cases and bulk quantities

• Can include other info such as weight and quantity

Compliance Labeling

9061414

1 0001

0 c1000 item

container

7061414

1 0001

0 c 250 item box

5061414

1 0001

0 c 25 item pkg

0061414

1 0001

0 cSingle

item Indicator

DigitCompany

PrefixItem

Number

ITF-14

ITF-14 Bar Codes

Used for shipping containers

1 0 6 1 4 1 4 1 0 0 0 4 1 5

U.C.C Membership?

Membership• Manufacturer• Large business• Multiple products• uc-council.org

• $500/yr+

Alternative• Reseller• Small Business• Single product• www.aureamedia.com

• $25/yr

Radio Frequency ID Tags

• Fast, Reliable

• No contact required

• Company assets

• Apparel, luggage, laundry

• People, livestock, or pets

• High value electronics such as computers, TVs, camcorders

• Books, DVD’s, Games

RFID tags are thumbnail sized devices that emit a radio frequency and can be attached to a wide range of products. pallets or cases of product

RFID Technology

RFID Applications

Summary

• Your POS solution’s success is dependant on a good barcode label / Automatic Data Capture solution.