New dimensions for barcodes in the supply chain

Two-dimensional (2D) barcodes look set to impact on the transport and logistics components of the supply chain as profoundly as linear barcodes did on the retail and distribution industries just a few years ago.

This is according to Scott Martin, business development manager for the industrial and manufacturing sectors at RangeGate. He says 2D barcodes have powerful applications in the parts of the supply chain that one-dimensional (1D) barcodes do not reach.

A 2D barcode is a high-density, non-linear barcode system that allows companies to store, scan and use information in much the same way as the familiar barcodes found on products on the shelves of supermarkets. However, a 2D barcode can store much more information than the 30 characters or so of a 1D barcode: a 2D barcode the size of a postage stamp could store the entire Gettysburg address.

"Unlike a traditional 1D barcode, a 2D barcode is actually a portable data file rather than a simple reference number. This means that a 2D barcode can store information such as fingerprints, photographs, DNA strings or voice patterns in addition to alphanumeric data," says Martin.

According to Martin, 2D barcodes are already widely used in North America and Europe. Usage is also starting to take off in Africa, Latin America and Asia.

Because 2D barcodes can store biometric information they are often used in applications where authentication and security are critical, such as in identity documents. The new credit card format driver`s licence is the first high-profile application of 2D barcodes in SA.

The barcode on the reverse of each card stores the same information as is printed on the licence, such as the driver`s personal details and photograph. This makes it more difficult to reproduce the licences fraudulently, since an employee of the traffic department can scan in the information from the barcode at the roadside, check it against the details on the licence, and potentially, use a GSM link to look up licence information in Department of Transport`s back-office systems. Martin believes that more South African companies will soon start looking at using 2D barcodes in supply chain applications.

1D barcodes are structured as follows: a prefix that identifies the country, then a number representing the manufacturing company, a product number, and a check digit. While this information is invaluable to retailers and manufacturers, it may be insufficient to meet the needs of other parts of the supply chain, such as transport and logistics firms, says Martin.

"For a logistics firm, for example, it would be helpful to be able to scan information such as the point a parcel was sent from and what its destination is, as well its size, weight, contents and volume, and get all the information in less than a second!

"This would allow more efficient handling of parcels, increased accuracy in data capturing, and allow them to automate more of their core processes. Having access to this information will allow all the players in a supply chain to track a parcel wherever it is at any time, provided the right processes are in place to ensure that the barcode is scanned at each point the parcel is handled," says Martin.

Martin says the cost of creating a 2D barcode is the same as producing a 1D barcode. However, the cost impact lies in buying hardware such as scanners and printers that support 2D barcodes.