Guide to Using Barcodes in Your Business

Tap into barcode technology for fast, accurate tracking

By John Henshell, Writer/Editor/Communications Consultant, John Henshell

Barcodes are a sort of Morse code that uses bars and spaces to represent critical data about a product or document. Unfortunately, not all barcodes are the same, and there's no universal business application. In fact, there are more than 100 different "symbologies," or types of barcodes — some have different widths of black bars, some are longer or taller, others are compressed and short.

Although it may seem confusing at first, barcodes provide a relatively simple and inexpensive way to encode information. Implementing a barcode system in your business can be well worth the effort, with benefits including:

1. Increased accuracy.
2. Speed.
3. Increased productivity.
4. Timely feedback.
5. Increased on-time deliveries.

Action Steps
The best contacts and resources to help you get it done

Determine which 'symbology' is right for your business

The most common symbology is the UPC code, which is used for retail sales in the U.S. and Canada. EAN is used for global retail sales. Code 39 is used extensively in manufacturing for data tracking and inventory control. ISBN and ISSN codes are used for books and periodicals.

I recommend: Determine which type of symbology you need to use by consulting a table of symbologies at BarcodeFAQ.com.

For UPC/EAN barcodes, join GS1 US

In order to print UPC/EAN barcodes, you need to become a member of GS1 US, the standards organization. The cost of membership is based on your annual sales, the number of products to be barcoded and the number of locations to be identified. As a member, you will be provided you with a 12-digit all-numeric barcode that identifies a company/product combination.

I recommend: For membership information and an online application, go to GS1 US and click on "I Need a UPC".

Apply for an ISBN or ISSN

If you want to publish books or a periodical, such as a magazine, you'll need to apply for an ISBN or ISSN, which requires a fee. You can then print out your ISBN or ISSN as a barcode.

I recommend: Apply for an ISBN code at ISBN.org. Find an ISSN application form at the U.S. ISSN Center.

Choose barcode design and labeling software

Specialized barcode software is necessary to design and print barcode labels. The font software for designing barcodes and the labeling software for printing barcode labels may be sold separately or combined in a single solution depending on the vendor.

I recommend: Find the barcode font software you need by clicking on the symbology you're using at IDAutomation.com. SystemID.com offers several of the leading barcode software programs. Standards-certified software that can correctly produce GS1 barcodes include Azalea, Bar Code Graphics and TekLynx.

Print barcodes

Once you have your barcode software, you'll need a printer and labeling supplies in order to print labels. Depending on the volume of barcodes you need to print, you can either do it in-house using your existing laser printer or a dedicated printer, or you can farm it out to a barcode label shop.

I recommend: Dedicated barcode printers are available at BarcodeFactory.com. Discover which HP laser printers can print barcodes. Or outsource printing to BarcodesInc.com, which welcomes small runs and offers pre-printed and custom barcode labels in a variety of shapes, sizes, colors and symbologies.

Scan barcodes

Barcode scanners read barcodes and transfer the information to a computer. There are thousands of scanners on the market. The best ones for your business depend on what they'll be used for — point-of-sale transactions, tracking inventory or industrial use. In addition, keep your budget and your working environment in mind. For example, if you're tracking inventory in a warehouse, you may want a rugged model or a cordless one to avoid damaging cords.

I recommend: Find point-of-sale, inventory and industrial barcode scanners in all varieties, such as pen-type, handheld, hands-free and portable at BarcodesInc.com.

Use database software

A database is critical to your barcode system. Whether you want to use your barcode system to receive raw materials, track inventory, track orders, maintain vendor and customer information, enter and change product prices, create purchase orders or generate reports, you'll need a database.

I recommend: Small retail businesses may get by with a relatively inexpensive database, such as Microsoft Access. Oracle, a leader in the database industry, offers affordable solutions for small businesses. Fishbowl is an inventory management solution that works with QuickBooks accounting software.

Helpful advice for making the most of this Guide

• •  For internal use of barcodes, such as inventory tracking, you don't need to join an organization or pay any fees.
• •  RFID (Radio Frequency Identification) technology may replace barcode technology, but is impractically expensive for small business.
• •  You may be able to use (import) barcode databases created by your suppliers.
• •  The largest computer hardware and software manufacturers (Dell, IBM, Hewlett-Packard, and Microsoft) offer products for barcoding, inventory control and point-of-sale systems.
• •  If you're reselling products, you probably won't need to print barcodes or join GS1 US.