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October 27, 2000

Two-Dimensional Bar Codes: The Next Link in Supply Chain Management

By Katrina C. Arabe

Many of the functions one-dimensional bar codes serve would be enhanced if they could store greater amounts of data than their current capacity. Ready to take up the slack, two-dimensional bar codes, which can store entire databases, are growing in popularity.

For almost three decades, one-dimensional (1-D) bar codes, such as the familiar UPC labels you find on the products in your supermarket, have been the industry standard for tracking, storing and identifying products, shipments and deliveries. These codes, in which text is converted into computer-readable "bars", perform the same function as license plates. Scanned correctly, they serve as keys to unlock additional data stored in a database.

As technology advances, however, situations requiring more data than 1-D bar codes can hold are on the rise. Two-dimensional (2-D) bar codes are now gaining acceptance as a means to supplement or replace their 1-D predecessors. 2-D bar codes possess stacked matrix codes that enable them to house entire databases. This increased capacity is especially important when database information needs to be visible at the time of scanning or when database access is unavailable. The result is that fewer scans are needed to collect the data and reliance on real-time access to the database is eliminated.

The U.S. Department of Defense, General Motors Corp. and Subaru-Isuzu Automotive, Inc. have all adopted 2-D bar code technology in their efforts to streamline logistics. Subaru has been able to ensure a more timely and accurate receiving process by mandating the use of PDF417 codes, one of the most frequent types of 2-D coding, in the labeling of their incoming parts. The 2-D parts label contains such information as part number, description, supplier name and quantity. The rapid accessibility of this data makes the gathering of inventory information almost instantaneous.

In addition to speeding up inventory management, 2-D bar code labeling also facilitates the tasks of sorting, shipping and receiving, as well as aiding shipper-to-carrier and shipper-to-consignee communications. They also help guarantee shipping verification by containing encoded e-mail addresses that can be used to notify shippers upon delivery. Because of these advantages, 2-D bar codes already enjoy widespread use in fields such as distribution and parcel delivery, as well as the healthcare and semiconductor industries.

2-D bar codes account for 10% to 20% of the bar code technology currently in use. This percentage is sure to rise in the years to come as more 2-D compatible printers, scanners, imagers and software are made available to manufacturers at more affordable costs.

Source: 2-D Barcodes Expand Apps for Automatic Data Collection
Hallie Forcino
Managing Automation, Sept. 2000
http://www.managingautomation.com

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