Supply chain management (SCM) is critical in today’s fast-paced and complex global supply chain. The goal of SCM is to ensure that goods are produced and distributed in the right quantities, to the right locations, and at the right time. One of the most effective tools in achieving this efficiency is the use of barcodes. Barcodes play an integral role in streamlining processes, enhancing accuracy, and improving overall productivity across the supply chain. This article will focus on the various types of barcodes used in SCM and how they help streamline operations.
Understanding Barcodes in Supply Chain Management
Barcodes are visual representations of data, typically encoded in black and white lines, that can be read by optical scanners or barcode readers. In the context of SCM, they are used to automate and streamline key processes such as inventory management, shipping, and order fulfilment.
The benefits of using barcodes in SCM are numerous, some are mentioned below:
- Automated Data Entry: Scanning barcodes reduces the need for manual entry of information, thus speeding up the data entry process.
- Inventory Management: Barcodes allow for more accurate tracking of inventory in real-time, reducing the chances of overstocking or stockouts.
- Real-time Tracking: Barcodes enable the real-time tracking of objects as they move through the supply chain, from warehouse to delivery.
- Accuracy: Reduces human errors associated with manual data entry, ensuring that information is consistent and accurate.
Common Barcode Types in Supply Chain Management
Several barcode types are widely used in supply chain management. Each type has its specific use case, depending on the data needs and operations of a given business.
EAN (European Article Number) – EAN barcodes enable the smooth movement of goods across international borders by providing standardised product identification. This is crucial for tracking products in global supply chains and ensuring consistent inventory management.
UPC (Universal Product Code) – UPC (Universal Product Code) is similar to EAN, but EAN codes typically have 13 digits, while UPCs have 12 digits. The primary difference is that EAN barcodes are more commonly used internationally, whereas UPC barcodes are more prevalent in the U.S. and Canada.
GS1 128 – GS1 128 is a versatile barcode type that allows the encoding of multiple types of data, including batch/lot numbers, manufacturing details, expiry dates, etc. This barcode type is commonly used in logistics and warehouse management. Its ability to encode large amounts of information makes it ideal for tracking goods and shipments, enhancing visibility and accuracy in the process.
ITF-14 – The ITF-14 barcode is used for labelling outer cases of products, particularly in wholesale and bulk shipments. Similar to the GS1-128 barcode type, the ITF-14 barcode is used on higher-level packaging. However, unlike the GS1-128 barcode, it cannot encode detailed information, it can only encode GTIN-14 for identification purposes.
QR Codes (Quick Response Codes) – QR codes are becoming increasingly popular in supply chains for real-time product tracking. These 2D barcodes can store large amounts of information and are easily scanned by smartphones. These codes are particularly beneficial in industries where real-time data access and mobile tracking are critical, such as retail, logistics, and e-commerce.
Specialised Barcode Types for Supply Chain Management
In addition to the common barcode types mentioned above, there are specialised barcodes designed for more specific needs in supply chain management.
GS1 Data Matrix – Data Matrix barcodes are two-dimensional (2D) barcodes that can encode large amounts of data in a very compact space. Their usage is specific to the healthcare sector, where variable data is to be encoded at high production speeds.
GS1 Digital Link-Based QR Codes – These advanced QR codes use the GS1 Digital Link standard and can hold even more data than traditional QR codes. GS1 Digital Link QR codes offer a highly scalable solution for tracking products, sharing data, enhancing consumer engagement, and providing real-time access to product information in various industries.
Choosing the Right Barcode Type for Your Supply Chain
Selecting the correct barcode type for your supply chain depends on several key factors:
- Size of operation: Small businesses might prioritise simpler barcodes like UPC or EAN, while larger operations may require more complex barcodes such as QR Code, GS1-128 or ITF-14.
- Industry requirements: Certain industries, such as pharmaceuticals, may benefit from Data Matrix codes, while logistics and shipping might need GS1-128 for their ability to encode multiple data points.
- Type of data: For real-time tracking and higher data capacity, GS1 Digital Link-based QR codes offer superior functionality.
- System integration: Ensure that the barcode type chosen integrates smoothly with existing software systems, ERP platforms, and mobile devices for seamless supply chain operations.
Conclusion
Barcodes are essential tools for improving efficiency in supply chain management. They help businesses track inventory, reduce errors, and speed up processes. Understanding and choosing the right barcode type is important for optimising your supply chain.