A barcode is a representation of a number, or code, in the form of a series of horizontal lines that is suitable for reading by machines and scanners. Barcodes are widely used in logistics and supply chains to identify and track goods at all stages of the supply chain process.
Figure 7 is an example of a barcode label from the retail industry:
Figure 7: A barcode example
Barcoding is an efficient method used to manage inventory in a warehouse. For example, goods received in a warehouse which are barcoded can be identified quickly by the warehouse management system and added to the stock records immediately. When the goods are put away, the barcode is used to identify the storage location. On dispatch, the item is scanned again and the stock record is amended accordingly.
Figure 8 shows the inventory management activities which are made more efficient by the use of barcoding.