Barcode usage in logistics
Inventory Management
Similar to the other industries, barcodes are fundamental in tracking inventory throughout the logistics process. Just like in retail, each product or package is labeled with a barcode that contains essential information such as product ID, quantity, and location. When a barcode is scanned, the data is instantly updated in the inventory management system, providing real-time visibility into stock levels and movements. This helps logistics companies maintain accurate inventory records, reduce stock discrepancies, and streamline the reordering process.
Receiving and Putaway
Upon receiving goods at a warehouse or distribution center, barcodes are scanned to verify the contents against the shipping documentation. This process ensures that the correct items have been received and enables efficient putaway by directing where each item should be stored. The system updates the inventory records with the location of each item, making it easier to retrieve them later.
Order Picking
In logistics, accuracy in order picking is critical to customer satisfaction. Barcodes facilitate the order-picking process by guiding warehouse workers to the precise location of each item. Workers scan barcodes to confirm they have picked the correct items, reducing the chances of errors. This system also allows for real-time updates to inventory levels, ensuring that stock quantities are accurate and up to date.
Packing and Shipping
During the packing process, barcodes are scanned to verify that the correct items are being packaged together. This step is crucial for ensuring order accuracy. Barcodes also play a key role in the shipping process, where they are used to generate shipping labels that include all necessary information for delivery. Scanning the barcode at each stage of the shipping process—from packing to final delivery—provides real-time tracking information, enhancing transparency and customer satisfaction.
Tracking and Tracing
Barcodes are essential for tracking goods as they move through the supply chain. Each time a package is scanned at a checkpoint, such as during transit or at a delivery hub, the system logs the package’s location. This real-time tracking capability allows logistics companies to provide accurate delivery estimates and updates to customers. In case of any issues, such as a lost package, barcodes enable quick tracing to determine the last known location and facilitate resolution.
Returns Management
The logistics of handling returns can be complex, but barcodes simplify the process. When a return is initiated, the product's barcode is scanned to retrieve all relevant information, such as the original order details and reason for return. This data is used to process the return efficiently, update inventory records, and issue refunds or replacements. Barcodes also help in tracking the status of returned goods as they move through the reverse logistics process.
Data Collection and Analysis
Barcodes generate a wealth of data that logistics companies can analyze to optimize their operations. This data can be used to identify trends, such as peak shipping times or frequently returned items, allowing companies to adjust their processes accordingly. Additionally, analyzing barcode data helps in forecasting demand, managing inventory levels more effectively, and improving overall logistics efficiency.
Compliance and Security
In industries with strict regulatory requirements, such as pharmaceuticals or food logistics, barcodes are used to ensure compliance with traceability standards. Barcodes on products allow companies to maintain detailed records of every item’s journey through the supply chain, which is essential for recalls or audits. Moreover, barcodes enhance security by ensuring that only authorized personnel handle specific products, and they can help prevent theft or counterfeiting by tracking each item’s movement.
Commonly used barcode types
Code 128
- Why it's used: Code 128 is a highly efficient linear barcode that can encode a large amount of data in a compact space. It supports the full ASCII 128 character set, making it ideal for applications where more complex data needs to be encoded, such as serial numbers, product IDs, and shipment tracking information. Its ability to encode alphanumeric data with high density makes it a preferred choice for labeling individual packages and pallets in logistics operations.
- Applications: Commonly used for tracking items in warehouses, shipping labels, and retail logistics.
QR Code
- Why it's used: QR Codes are 2D barcodes that can store significantly more data than traditional linear barcodes, including URLs, detailed product information, and instructions. They are widely used in logistics for their ability to be read quickly by scanners and smartphones from any angle. QR Codes are especially useful for providing access to detailed product or shipment information with just a scan, improving traceability and customer engagement.
- Applications: Used in inventory management, tracking and tracing shipments, and customer-facing applications like package tracking and interactive marketing.
Data Matrix
- Why it's used: Data Matrix codes are another type of 2D barcode that is highly compact and capable of storing large amounts of data in a small space. They are particularly useful in logistics for labeling small items and components due to their robustness and readability, even when the code is damaged or printed on a small surface. This makes them ideal for tracking individual items through the supply chain, especially in industries where space on packaging is limited.
- Applications: Used for marking small parts, inventory tracking, and ensuring traceability in sectors like aerospace and electronics.
UPC (Universal Product Code)
- Why it's used: The UPC is a linear barcode that is widely recognized and used primarily for retail products. In logistics, it is commonly used for tracking consumer goods from the manufacturer through to the retailer. Its simplicity and widespread adoption make it a standard choice for product identification, ensuring compatibility across different stages of the supply chain.
- Applications: Primarily used in retail logistics for tracking consumer goods.
ITF-14 (Interleaved 2 of 5)
- Why it's used: ITF-14 is a linear barcode used for encoding 14-digit GTINs (Global Trade Item Numbers) and is often used for marking cartons and pallets. This barcode is robust and designed to be read even in challenging conditions, such as on corrugated cardboard, making it ideal for use in warehouse and shipping environments.
- Applications: Used for labeling cases, cartons, and pallets in logistics and warehousing.
PDF417
- Why it's used: PDF417 is a stacked linear barcode that can encode large amounts of data, including text and binary data, in a compact format. It is used in logistics when detailed information needs to be encoded directly on a label, such as in shipping and transportation documents, where it can store a variety of information like sender and recipient details, package contents, and tracking information.
- Applications: Commonly used on shipping labels, driver’s licenses, and transportation documents.
