How Do Barcodes Work? History, Technology, and How To Purchase

The journey of barcodes from an innovative idea to a ubiquitous component in inventory management and sales tracking is a fascinating tale of technological evolution, legal battles, and strategic rebranding. This overview explores the key milestones in developing barcodes, highlighting their impact on sales, marketing, and global commerce.

A barcode is a method of representing data in a visual, machine-readable form. Initially developed to automate supermarket checkout systems, their application has expanded across retail, manufacturing, logistics, healthcare, and more. At its core, a barcode consists of a series of parallel lines (bars) and spaces of varying widths that represent numbers and other symbols. Optical scanners, commonly known as barcode readers, can scan and interpret these patterns.

How Do Barcodes Work?

The process begins with creating a barcode representing specific information, such as a product ID. This is achieved by using a barcode symbology, a set of rules defining the graphical representation of characters and numbers.

Barcodes are categorized into two main types: linear (or 1D) and matrix (or 2D) barcodes.

When a barcode scanner shines a light on the barcode, it detects the reflected light patterns. The scanner then converts these patterns into digital data sent to a computer or a sales system, which interprets the data based on the specific symbology used.

There are two primary types of Barcodes in use in retail. All types include a check digit, the last number calculated from the others to verify the barcode’s accuracy.

UPC

How a UPC Barcode Works

A UPC-A barcode includes a 12-digit number: the first six digits are the manufacturer’s identification number, the next five digits are the item number assigned by the manufacturer, and the last digit is a check digit.

EAN

An EAN-13 barcode consists of a 13-digit number: the first 2-3 digits represent the country code, the next 4-5 digits are the manufacturer code, followed by a 5-digit product code, and the final digit is a check digit for error detection.

History of Barcodes

Barcode technology has a relatively recent history and a fascinating origin story that traces back to the need to track railroad cars across the United States.

The 1950s: The Invention of Barcodes

I poked my four fingers into the sand and for whatever reason — I didn’t know — I pulled my hand toward me and drew four lines. I said: Golly! Now I have four lines, and they could be wide lines and narrow lines instead of dots and dashes.

Norman Woodland, Interviewed by the Smithsonian

The 1960s: Early Applications of Barcodes

The 1970s: The Dawn of Barcodes

  • 1973: The Uniform Grocery Code Council (UGPCC) recommended the adoption of the UPC barcode symbol, setting the stage for standardized product identification.
  • 1974: On June 26, 1974, the first product with a UPC barcode was scanned at Marsh Supermarket in Troy, Ohio, marking the beginning of a new era in retail. This first scanned product, a pack of Wrigley’s Juicy Fruit gum, symbolized the practical application of barcodes.
Source: GS1

The 1980s: Expansion and Standardization of Barcodes

The 1990s: Technological Advancements of Barcodes

The 2000s: Legal Challenges and Strategic Mergers

The 2010s: Global Trade Item Number Adoption

The 2020s: Barcodes Are Everywhere!

The history of barcode technology illustrates a journey from an innovative concept inspired by Morse code to a critical component of global commerce and logistics. Its ability to simplify and streamline the tracking, management, and operation processes has made it indispensable in various industries, demonstrating the profound impact of technological advancements on efficiency and productivity.

Barcode readers have evolved significantly, from requiring manual movement across the code to using stationary laser scanners that can read barcodes without moving the item. Additionally, photo-based barcode readers, like those used for scanning QR codes on smartphones, represent another advancement.

Barcodes: Buying vs Leasing

Companies must ensure their barcodes are globally unique to prevent conflicts and issues in the supply chain. Companies lease or buy barcodes to ensure no conflicts with other products’ identification. Leasing often involves an annual fee and is akin to a subscription service where companies maintain their identifier under the management of the issuing organization, such as GS1. Buying barcodes is often possible as a one-time purchase but must be done through a reputable barcode sales outlet.

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