Bar-Coding is a computerized recognition of a product.
A
bar code is a set of bars and spaces of differing width which represent a
number. A space is treated as 0 and a bar unit as 1. The code can be read
optically as a bit pattern in which successive groups of bits are treated as
BCD or some other numeric code. Bar codes appear on a variety of items - tags,
tickets, plastic cards or on packets and cans in shops.
Many
goods sold today are bar coded on their labels. Bar codes are a set of black
parallel lines of varying widths with accompanying numbers (usually 13 digits).
Bar codes give information about the goods such as the manufacturer's name or
brand and the price. At the checkout, the label is read by a scanner or passed
across a laser beam which reads the information and transmits it to a computer
screen on electronic cash till. The cash till produces an accurate and detailed
list of the items bought for each customer. This saves the cashier having to
key in the individual items and speeds up the process of payment at the
checkout counter. Using bar codes means that goods do not have to be priced individually.
Often the price is shown on the display shelf. If prices change, the computer
will be re-programmed. This way prices on individual goods do not need to be
changed.
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| How a Computer Uses a Barcode? |
The Bar-coding System
The
above picture shows a barcode from a tin of Heinz baked beans. The number at
the bottom is called the European Article Number (EAN); a number is allocated
to all product manufacturers by the Article Number Association. The system
works as follows:
•
The first two digits represent the country where the goods
are produced.
•
The next five digits identify the manufacturer of the goods.
•
The following five numbers identify the product.
•
The final number is a check digit and is used to check that
the other 12 numbers have been entered correctly.
Electronic
Point of Sale (EPOS) is using electronic tills where bar codes are passed
through a laser bean and read by a computer. The computer is able to provide
management with information on the flow of sales - what is selling well and what
is not - and also what kind of customers are buying what kind of goods. The
computer can also provide a check on stock levels and can activate the need to
order more stock. Electronic tills also provide customers with itemized bills.
The name of the product and its price are shown on the receipt slip given to
the customer. Using EPOS and bar coding requires a large capital outlay on
buying equipment and training staff. The whole retail outlet must be fully
computerized.
Most
retail businesses make increasing use of computers to improve efficiency. They
may use computers to prepare the documents they use, e.g. order forms and
invoices. They may use Internet banking and computerized software to manage the
accounts. They may have a database of customer details. They may use the Internet
to view what their competitors are doing and to obtain information. They may
use computerized means of communication to contact suppliers and customers and
also within the business by means of the internal network or intranet. They may
word process their correspondence and use desktop publishing to prepare
advertising literature.
Example: Tesco is the largest food
retailer in Britain. Tesco used to have many small shops on every high street,
but the company has been concentrating on the development of the huge units we
see today called superstores. Each superstore stocks over 14 000 food lines alone
and has a sales area of over 25 000 square feet.
Using a Barcode reader in the desk of a point of sale terminal
Tesco
was one of the first high street companies to use the barcode reader which is
now called a laser scanner. The objectives of the scanning system are to
improve the service to customers and to increase company productivity and
profits. The above picture shows the scanning system used to scan in a barcode.
The scanning system uses a laser beam to read the barcode on the goods. The
bars contain the same information as the numeric code at the bottom of the
barcode without the likely inaccuracies of typing the number in. As the barcode
is passed across the scanner this number is read and the price and description
of the goods are obtain from the computer, the sale registered and an itemized
receipt produced.
Benefits of the Bar-coding
system to the Customers
There
are numerous benefits to customers and these include the following.
1.
With the old system, prices were entered into the cash
register manually. With the scanning system this is done aid automatically, which
eliminates typing errors, so accurate pricing is assured.
2.
The scanning till is estimated to be 15% more efficient, so
customers will spend less time waiting to be served. No time wasted or mistakes
made entering prices.
3.
Produce such as loose tomatoes are weighed at the checkout
so customers no longer have to queue twice; once at the pricing point and again
at the checkout.
4.
Customers can have their cheques and credit card vouchers
automatic printed.
5.
Customers using a debit card such as Switch can withdraw up
to £50 in cash from any checkout.
6.
More promotions may be offered, such as ‘buy two and get one
free' (multisaver).
7.
An itemized receipt receipt is produced. This receipt will
often include detailed information about what has been bought.
Benefits of Bar-coding System
to the Company
Some
benefits are easily quantified but others are more difficult.
1.
Checkout accuracy is improved. There are no longer any
operator errors and fraud is limited, since in the past it was possible to key
in a lower price and pocket the money.
2.
Throughput is faster and more efficient. There is, on average,
a 15% saving in time to register the goods in a shopping trolley.
3.
Customer service can be improved. New services such as Clubcard,
multisavers, etc., ensure customer loyalty.
4.
Productivity is increased. There is no need to price each
individual article, as in the past. Prices are included on the edges of the
shelves next to the articles. Weighing and pricing at the checkouts eliminates
the need for separate pricing points.
5.
Sales information from the checkout is used to create the orders
for stock replacement.
6.
Stock levels can be reduced. More efficient stock control
means less money tied up in stock and less likelihood of running out of certain
items on the sales floor.
7.
Wastage is also reduced. Perishable goods such as fresh meat
and salads can be ordered accurately using the sales information obtained from
the checkout.
8.
Promotional analysis and sales analysis are improved.
Scanning data can be used to assess the effectiveness of special promotions and
can provide important information about the sales of certain goods.
9.
The cost of adding a bar code to a label is tiny and there
is saving on paperwork.
Demerits
of Bar-code System
Though
bar-coding have many advantages, there are some disadvantages too. Such as:
1.
The cost of a point-of-sale system which does laser-scan bar
codes and link into a computer system is still relatively high.
2.
Bar code scanners have reliability problems.
3.
Bar codes cannot be read by people.
4.
Only numbers can be coded.
5.
They are relatively fixed — so, for example, they are unsuitable
for recording prices which can frequently
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