Preparing for GS1 DataBar Codes

We all face such strict demands on our professional time that it is easy to view any change in the status quo as “just a new problem to solve.” We sometimes miss the opportunities that can be found in these changes. These opportunities and how we exploit them can define our organization and separate us from the competition.

A new type of bar code, GS1 DataBar, has been approved for marking trade items in the retail supply chain. GS1, the global retail standards-setting organization, has set Jan. 1, 2010 as the “sunrise” date when all manufacturers worldwide must be prepared to mark and read packages with GS1 DataBar codes as an alternative to the EAN/UPC bar codes in use today. Retailers, in turn, should be ready to scan packages with the new codes at point of sale.

The new GS1 DataBar code is smaller than a current UPC code but it has the capability of containing additional valuable data like product “sell-by” dates or coupon data (purchase requirements, expiration date).

Within the retail industry, GS1 DataBar codes are meant to address limitations with some current bar-code marking applications, including:

Small items. Many manufacturers use very truncated forms of EAN-13 and UPC-A bar codes, which are difficult for POS scanners to read. GS1 DataBar is capable of encoding data in about half the space required by EAN-13 and UPC-A bar codes.

Fresh produce. With increased consumer demand for an expanding variety of fresh produce, it is important that such products be identified exactly. GS1 DataBar codes fit small produce stickers with the produce type and the supplier uniquely identified.

Variable-measure fresh foods. Existing UPC-A bar codes used to mark variable weight packages (such as meat and deli items) provide the price, but suffer the same problems seen in produce – neither the precise product type nor the manufacturer is in the bar code. GS1 DataBar bar codes can contain additional information such as weight, price, and sell-by date.

Coupons. The System 5 UPC-A coupon codes used in North America are limited by their inability to fully identify the issuer of the coupon and provide only 100 specific purchase requirement and value combinations. GS1 DataBar codes can contain up to 70 digits and provide more information to those in the supply chain, including store managers.

Beginning this year, an interim coupon format is being used by many manufacturers that includes two bar-code types: a UPC-A code and a GS1 DataBar code. By Jan. 1, 2010, these coupons will have only the new GS1 DataBar code.

The opportunity
Point-of-sale bar-code scanners must be able to read the four variants of GS1 DataBar code and must be able to return data in the form of GS1 Application Identifiers to the POS application. Some recently installed scanners were shipped with GS1 DataBar code reading capability disabled, since most retailers are not prepared to handle GS1 DataBar code information at this time. Some bar-code scanners currently installed do not have the capability to read all of the GS1 DataBar codes.

In addition, just because a bar code scanner can read GS1 DataBar codes does not mean that current POS application software is capable of interpreting or exploiting the additional data that may be present.

Now is the time to begin preparing for the new GS1 DataBar codes by ensuring that your POS bar code scanners are capable of reading the new codes and by verifying that your POS software application can accept the data from the new codes and interpret it correctly.

By consulting your POS scanner and software provider, you can begin to eliminate any operational problems that may arise as the new codes begin to filter into your supply chain. More important, you can prepare now to gain the benefits of the additional information and capabilities afforded with the GS1 DataBar code.