It is easy to take for granted how convenient and fast modern life is. How quickly was the cashier able to scan your groceries last time you were at the store? At one point, people had to enter all of that by hand. Barcodes completely changed the way that data is read – from a bag of potato chips to a container filled with cargo, barcodes improve efficiency and reduce mistakes all through the supply chain.

Let’s take a dive into the story of these deceptively simple patterns of lines.

Where Did the Barcode Come From?

We can thank inventors Norman Joseph Woodland and Bernard Silver for patenting early barcodes in 1952. Their novel idea was inspired by Morse Code; various sized and colored lines represented numbers that made up a code. Despite taking a long time for barcodes to become common, they found early success in the rail industry. Rail operators in the UK and USA tagged rail cars with barcodes, allowing workers to scan them quickly as they rolled down the line.

Barcodes took off in the late 1970’s when computers became more common. Outside of railroads, grocery stores and auto plants were two of the earliest adopters of the technology. Cashiers could quickly scan products while reducing costly mistakes. Meanwhile, auto plants could quickly sort through thousands of engines and transmissions. That industrial application of barcodes set the ground work for the supply chain we know today.

How Is the Barcode Used In the Supply Chain?

The most common type of barcode is the Universal Product Code (UPC). This is the code that cashiers scan when you buying virtually anything from a store. The UPC standardizes product identification across an international database. That means a convenience store in Italy will read the barcode on a bag of potato chips from California the same way. The UPC helps stakeholders track products throughout the supply chain, manage inventory more effectively, improve efficiency, and reduce human error.

But the humble barcode does not stop there!

Industrial and Commercial Supply Chain Roles of the Barcode

While UPC barcodes are fantastic for individual products, their thirteen digit codes are not ideal for industrial and commercial applications. As a result, dozens of types of barcodes have been introduced to better fill those roles. Some of these barcodes are proprietary, while others are standardized like the UPC, but they all have the same basic job – assign unique, scannable codes to an item.

Here are some examples of where you might come across a barcode in the supply chain:

Serial Shipping Container Codes:

Serial Shipping Container Codes (SSCC) are an evolution of the barcode. Featuring eighteen digits, they are more customizable and less standardized than a UPC. A company can print a unique SSCC and apply it to a shipping unit, such as a crate or pallet, to track it precisely as it moves through the supply chain.

Shipping Documents:

Shipping documents like bills of lading (BOLs) and packing slips often have unique, scannable codes printed on them. These codes allow warehouse workers and delivery drivers to quickly fetch information on a specific item. This can include what the item is, where it needs to go, and other important details.

Warehouse Locations:

Warehouses are massive, confusing buildings filled with thousands of different items. Fortunately, the barcode is here to save the day! Modern warehouses have unique codes assigned to each area in the warehouse, often down to the exact spot on a shelf. When freight arrives, warehouse workers can easily document where they place it by scanning the item and assigning it a location. This makes finding the freight much easier and allows other workers to simply scan a code to determine what is in a crate or pallet without having to open it.

Factories:

As we mentioned earlier, one of the earliest adopters of barcodes were auto manufacturers. With thousands or parts going into a single car, it is vital to keep track of inventory. Barcodes help workers accurately track remaining parts, determine which cars need each part, and know when to reorder supplies. This process has extended to dozens of other types of factories, especially ones building complex products like cellphones and computers.

Equipment Tracking:

Supply chains require thousands of different pieces of equipment to run. This includes everything from safety harnesses to forklifts. Barcodes allow companies to easily track all of this since dozens of people can use the same piece every day by requiring workers to scan equipment out when they use it. It also allows companies to digitally keep track of things like maintenance records for machines and vehicles.

Other Areas Where Barcodes Play a Role

Consumers and the supply chain aren’t the only beneficiary of barcodes. Some other areas that use them include:

Medical – Easily keep track of patients, equipment, and medicine.

Military – Track equipment and keep maintenance logs for vehicles.

Finance – Individuals can transfer money digitally by scanning codes.

Education – Schools use barcodes to identify exams easily and issue student IDs that grant access to campus facilities.

Travel – Boarding passes, passports, and parking passes all use barcode technology for quick processing.

Agriculture – Researchers often tag wild animals they track with unique codes.

Barcodes Keep the Modern Supply Chain Running

Prior to barcodes, everything that was shipped needed to be manually inspected and documented. When millions of tons of freight are moving everyday, it makes the process slow, costly, and mistake prone. Barcodes have allowed stakeholders in the supply chain to manage inventory, track shipments, locate items, and document maintenance with unprecedented speed and precision. It is this efficiency that keeps our fast-paced modern world running.

Despite these advances, moving freight is a daunting task. That is why partnering with a managed logistics partner like New Light Enterprises can take your supply chain to the next level! Reach out to New Light today and see how we can help you.