Ever noticed those black and white lines on product packaging? That’s a barcode!
These labels hold a wealth of product details, from price and manufacturing information to batch codes and beyond.
For business owners, barcodes are invaluable for automating sales processes and managing inventory. A single scan instantly brings up crucial product information in a cash register or Point of Sale (POS) system.
Curious about how barcode price scanning works? How do these lines store so much data? Let’s dive into a complete explanation.
What is a Barcode Price?
A barcode is a visual symbol made up of varying black and white lines. Some also include numbers, depending on the type.
These lines and numbers represent specific data that can be read by special scanning devices, commonly known as barcode scanners.
Barcodes act as a visual representation of necessary information, such as product prices, product codes, or inventory data.
In the context of barcode prices, the information typically encoded relates to the product’s price and its unique identification.
The Vital Functions of Barcode Prices in Business Transactions
The implementation of barcode prices offers numerous critical functions across various business types, especially those in retail and distribution.
Without barcodes, product management, inventory control, and sales transactions would be considerably more complex. Here are some of the primary functions of barcode prices:
Automating Transaction Processes
Barcodes significantly simplify the sales transaction process at the checkout, particularly for businesses dealing with packaged or finished goods.
When a barcode scanner reads the code on a product, the POS system automatically displays product information, including price and quantity. This reduces the time spent on manual price entry.
Preventing Price Input Errors
Manual price input by humans is highly susceptible to errors, especially for stores selling hundreds of different products.
Barcode prices ensure the information entered into the system is accurate, minimizing the risk of errors.
Saving Time and Operational Costs
Barcodes speed up sales transactions, directly reducing the time your staff needs to process customer orders.
Furthermore, because automated barcode systems integrate with inventory systems, operational costs in product management are also lowered.
Streamlining Inventory Management
Each product with a unique barcode can be easily tracked automatically. When a product is sold, the remaining stock in the warehouse is instantly updated according to the transaction.
This makes it easier for you or store managers to know when to restock or identify slow-moving products.
Enhancing Transaction Data Security
Beyond product price data, other information such as item type and supplier details are also stored within product barcode prices.
This data aims to increase transparency in transactions and strengthen data security systems within the business.
How Barcode Price Scanning Works: From Creation to Reading
There are four key processes that explain how product barcode prices function: creation, printing, scanning, and data processing. Here’s a breakdown:
Barcode Creation
Barcodes are created based on the product data you want to store in a line code format. This data includes essential information like the product code, price, and other product identifiers.
To create a barcode, you need specialized applications or software that can convert data into a scanner-readable line pattern.
Next, you choose the type of barcode to use, whether it’s a 1D barcode like EAN or UPC, or a more complex 2D barcode like a QR Code.
Typically, large companies or manufacturers print these barcodes directly onto product packaging at the factory, while smaller stores might print their own barcode labels using a barcode printer.
Barcode Scanning
A staff member scans a barcode on a cardboard box, demonstrating barcode price scanning.
The second step in how barcode price scanning works is the actual scanning of the barcode. During a transaction, the barcode on the product is scanned using a scanner capable of reading barcode patterns.
In this process, the scanner directs a light beam onto the barcode, and the white spaces reflect the light back.
Conversely, the black lines on the barcode absorb the light. This difference in reflection and absorption is translated by the scanner into digital signals that can be processed by a computer or POS system.
Two common types of barcode scanners are laser scanners and imaging scanners. Laser scanners can only read linear (1D) barcodes because their operation focuses on a single line.
In contrast, imaging scanners use a camera to capture the entire code, enabling them to read 2D barcodes like QR Codes more accurately.
Data Processing in the POS System
Once the barcode is scanned, the POS system receives the data contained within the barcode.
Information such as price, product code, and product description instantly appears on the cashier’s screen. The system processes the data received from the barcode scanner and matches it with the product database stored in the system.
Data Storage and Management
The final step in how barcode price scanning works involves data storage and management. Beyond processing data for transaction needs, barcodes also play a crucial role in inventory management and overall business administration.
The data encoded in barcodes is stored in computer systems and can be used for various purposes, including tracking stock levels, analyzing best-selling and slow-moving products, designing promotions, and generating financial reports.
Modern POS systems are generally integrated with inventory management software. Therefore, when a barcode is scanned and a sales transaction occurs, the system automatically updates the stock levels in real-time.
Common Types & Examples of Product Barcode Prices in Indonesia
In Indonesia, several types of barcodes are commonly used in the retail and distribution industries. Here are three of the most prevalent examples:
1D Barcodes (Linear Barcodes)
The first and simplest type of barcode is the 1D or linear barcode. It consists of black and white lines that vary in thickness.
The most popular examples of 1D barcodes are UPC (Universal Product Code) and EAN (European Article Number). These codes are frequently found on product packaging in supermarkets and retail stores.
If you purchase a pack of instant noodles or a bottle of mineral water at a convenience store, you’ll likely see a 1D barcode printed on the back of the packaging. Scanners at the checkout read these barcodes to determine the price and record the transaction.
2D Barcodes (Two-Dimensional Barcodes)
Unlike 1D barcodes, 2D barcodes can store significantly more data because they use two dimensions (horizontal and vertical).
The most common type in Indonesia is the QR Code. QR Codes can store more comprehensive information such as product/menu descriptions, website URLs, contact details, discount coupons, and even product authenticity checks.
Moreover, QR Codes are easier to read even when positioned at an angle or slightly damaged.
QR Codes for Payments
In recent years, QR codes have become increasingly popular as a digital payment method in Indonesia. Examples include digital wallets like OVO, GoPay, Shopee Pay, and Dana.
QR Codes are commonly used by food businesses such as cafes, restaurants, coffee shops, bakeries, and more. Customers simply scan the QR Code provided by the merchant using their digital wallet application and verify the payment.
Furthermore, QR payment systems have been adopted by major banks through the QRIS (Quick Response Code Indonesian Standard) system launched by Bank Indonesia.
The advantage of QRIS is that you can accept payments from any digital wallet integrated with QRIS. Customers only need to scan the same QR code with their smartphone camera.
QR Codes are also starting to be used in parking transactions and public transportation in Indonesia, and even by street food vendors.
Conclusion
This explanation covers the technology of barcode prices. This system has significantly contributed to the progress of many businesses domestically.
By understanding how barcode price scanning works, businesses can automate transaction processes, reduce errors, and save operational costs.
In Indonesia, various types of barcodes like UPC, EAN, and QR Codes are widely used to help businesses become more flexible in monitoring stock and accepting payments.
