Bar Code Technology - Saving Time and Money

By Amy Nutt

For those who are not familiar with bar codes, they are a series of black lines and spaces or various widths that stand for numbers and /or letters, and punctuation symbols. The codes are found on most items produced today to uniquely identify items with a scanner. The scanner reflects light off the code and in turn reads the information, translates the code into numbers and letters that get processed and read by the computer.

Bar codes, or UPCs (Universal Product Codes) were first used in 1974 and the first item scanned was a package of Wrigley's Juicy Fruit gum (10 pack), which has since been put on display at the Smithsonian. At that point in time, it was projected that there would be a savings to producers of good, of just under $1.5 billion but it turns out that the estimate was incorrect and the actual savings is an impressive $17 billion a year.

Benefits of Bar Coding

There are several reasons for using bar codes which prove there usefulness:

- Collection of data quickly - in fact a scanner can record the information and enter it up to seven times faster than a skilled typist doing the work manually. The accuracy is also much improved - up to 10, 000 times better. It is estimated that bar codes make 1 error for every 3 million scan made as opposed to manual errors averaging in at 1 in every 300

- Scanning also reduces labor costs, relieving workers from manual data entry. It helps to keep better records of inventory and sales and saves time again for the worker searching inventory physically in order to find stock.

- Access to information is increased as well as increased access to details about inventory and products. This helps with decision making when ordering and restocking items which would otherwise involve making long tedious lists. It helps by keeping a tighter hold on inventory control thus helping to eliminate duplicate orders or overstocking of items.

Ways that Bar Codes are used:

Bar codes can be used for more than just flagging prices and inventory for groceries and items purchased everyday by millions of consumers. For example:

- The most common is the point-of-sale, where the items we purchase as consumers are scanned at the cash register. This saves on labor costs.

- Bar codes can be used for manufacturing industries to track the progress of the stages of work being done on a project. It can keep detailed information on how much product is being used at each step of the manufacturing process.

- Inventory can be easily controlled by the scanning process. Tracking goods that are being shipped or received is quick work using UPCs compared to doing it manually. Data can be uploaded from a handheld scanner into a company's main computer at regular intervals (commonly referred to as Batch). It also drastically reduces time and effort when conducting annual inventory controls and counts, keeping time consumption low and costs down.

- Coding is also now used for security practices, providing bar coded tags to grant access to employees into their designated areas of work. In addition to granting access, many of these ID Tags are also used to keep track of employee time sheets and payroll.

- In the case of packaging, bar code printers produce a sticker to help identify parts and serial number for shipping goods. This helps in shipping and enhances the ability to track shipped items.

- Offices such as medical and dental can use bar coding as a means to keep complex patient records sorted more easily. By coding the boxes on forms filled out by the patient or doctor sorting through that information or compiling similar information for reports makes this chore a simple and quicker one. The result is better and faster patient service.

The introduction of UPCs has changed how companies handle time, money, and makes them cost effective and more efficient. - 30544

About the Author:

Sign Up for our Free Newsletter

Enter email address here