What are Barcodes? Barcode 101

What are Barcodes? Barcode 101

BY: NICK RECHT / DATE: 05/06/2025 / TOPICS: PRODUCTION, COMMERCE DE DÉTAIL, ENTREPOSAGE & DISTRIBUTION, LABEL DESIGN, BARCODE BASICS

Merriam Webster defines a barcode as "a code consisting of a group of printed and variously patterned bars and spaces and sometimes numerals that is designed to be scanned and read into computer memory and that contains information about the object it labels." Barcodes are used globally across all industries—from manufacturing and retail to food & beverage. They are the backbone of supply chain operations. But what does that mean for you and your business? You might be wondering what are barcodes and why should I use them?

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Table of Contents

1. What are barcodes?
2. What are GS1 standards?
3. How do barcodes work?
4. How to start creating barcodes?
5. Why are barcodes important?
6. How does TEKLYNX help?

What are barcodes?

There are over 100 types of barcodes, generally categorized into 1D barcodes or 2D barcodes. 1D barcodes, also known as linear barcodes, and are one of the most used, especially on consumer goods. They consist of vertical lines, encode around a dozen characters of data, and can be scanned horizontally.

 Common types of 1D linear barcodes are:

• UPC-A (Universal Product Code - Type A): A 12-digit barcode used to identify products in North America. It's the most used barcode in the world.
• EAN (European Article Numbering): A barcode that is used to identify products worldwide. It's like UPC-A, but is particularly used in Europe and other areas of the world.
• Code 39: This format can encode up to 43 characters and is a common barcode in manufacturing and shipping.
• Code 128: A compact and versatile barcode that can encode up to 255 characters and is often used in logistics and retail.

2D barcodes, such as QR codes, can store significantly more data than a 1D barcode, but in a smaller space. They are shaped like squares or rectangles and encode information both vertically and horizontally. This design allows them to have many purposes such as storage for UPC codes, importing or exporting data, and sharing URL links.

Common types of 2D barcodes are:

• DataMatrix: A compact 2D barcode that can encode a large amount of data in a small space, often used for tracking and inventory management in industries such as healthcare.
• QR Code: "Quick Response Code" with an array of black and white squares that can store URLs, text, and other data. They're scanned by smartphone cameras, tablets, or 2D scanners, and are widely used in marketing, payments, and consumer applications.
• PDF417: A stacked barcode used in government issued IDs such as the United States driver's licenses and REAL ID, and is also used in industries like transportation & logistics, automotive, pharmaceutical, and manufacturing. 417 refers to the four bars and four spaces on the barcode, and 17 units long.

Additionally, there are also composite barcodes, which combine a linear barcode with a 2D component. This approach enables encoding in one single symbol. Some barcodes require a human readable component. The human readable component displays the contained data in letters and numbers below the barcode, designed as a fail-safe in case the barcode can't be scanned. The bars or patterned spaces are read by the scanner, while humans can read the numbers and letters, if applicable.

What are GS1 standards?

Barcode standards are defined by GS1, a global not-for-profit organization that provides the framework for real-time product identification, tracking, traceability, and supply chain efficiencies. GS1 barcode standards serve as the global language of business between suppliers, partners, and customers. Creating GS1 barcodes efficiently and accurately is crucial for day-to-day operations of businesses worldwide.

GS1 Digital Link is a standard that allows GS1 identifiers like a Global Trade Identification Number (GTIN) or Serial Shipping Container Code (SSCC) to be encoded in barcodes, like QR codes or GS1 DataMatrix. These barcodes can be scanned to connect to online information. Just as a URL points to a website, a GS1 Digital Link provides access to all types of business-to-business and business-to-consumer content. GS1 Digital Link is important for the migration to 2D barcodes and enhances functionality globally.

The GS1 Digital Link standard can be used in multiple ways depending on business requirements. For example, using a single, web-enabled QR code on a product, a logistics provider can scan it to see the product's journey through the supply chain; a retailer can scan the same QR code at the point of sale; a consumer can scan it for digital content such as instructions for use or nutrition information; and a brand owner can update the digital content anytime without changing the barcode on the label or packaging.

Since the invention of the barcode in 1974, its purpose has been to store data for quick scanning and processing. The UPC, first introduced in grocery stores to streamline checkout, remains one of the most used barcodes and appears on countless everyday products.

However, 2D barcodes are gaining popularity across industries because they can store more information in a smaller space. In response to the shift, GS1 introduced Sunrise 2027, an initiative to increase the adoption of 2D barcodes for distributors, retailers, and consumers. By 2027, it's best that retailers ensure their point-of-sale (POS) systems can scan 2D barcodes to stay ahead of the trend.

Note: Sunrise 2027 is industry driven and not mandated for businesses. 1D barcodes are not being sunset and will still be used by many industries. Adopting 2D barcodes before 2027 can help businesses gain a competitive edge.

GS1 barcodes are essential in the supply chain for reliable product information, while meeting industry standards. TEKLYNX barcode label design software helps you create and print GS1-compliant barcode labels.

How do barcodes work?

Barcodes can be printed on a variety of surfaces, such as product labels or packaging, using suitable printing technology, ink contrast, and label material. Barcode scanners use optical sensors to emit light onto the barcode and detect reflected light. The varying reflection, caused by differences in line thickness and spacing, allows the scanner to interpret the barcode pattern and decode the encoded data.

Once the scanner captures the reflected light, it converts the information into an electrical signal. The signal is then decoded based on the barcode's symbology and passed to connected systems for further processing. The decoded data can seamlessly integrate into various business systems, enabling real-time updates, automated processes, and accurate tracking across the supply chain.

In other words, a barcode is simply a method of encoding information into a visual pattern a scanner can read; black lines absorb light while the white area reflects light, and the amount of light reflected is converted to data a computer can understand.

Barcode 101: How to start creating barcodes?

As mentioned earlier, there are over 100 barcode symbologies, each designed for a specific purpose such as inventory tracking, retail sales, regulatory compliance, data capture, and more.

GS1 can help you determine what kind of barcode(s) you need, whether you need a human readable component, the capacity of the barcode, and more, depending on what the barcode is being scanned for. Using barcode labeling software can help you remain compliant and ensure you are creating accurate labels.

The first step to creating a barcode is understanding what the barcode will be used for and what product it's going to be placed on. If the barcode is being scanned at a retail POS, you'll need a UPC code. If you are selling online, you'll need a GTIN along with a UPC code. For inventory and warehousing, you'll need specific barcodes that encode more information along with the GTIN, like batch/lot number, weight, expiration, etc. To get started, you'll need a GS1 Company Prefix or a GS1 US GTIN.

Once the correct barcode type is identified, the next step is barcode serialization. Serialization assigns a unique number to each individual product, whether it's a sequential number or a complex sequence. That way, no two products will have the same unique identifier (e.g. serial number). Barcode labeling software makes serialization straightforward, just follow the steps below.

1. Go to Data Source > Counter > Add. 
2. Give the counter a name (you will use this unique name whenever you want to use this counter).
3. Configure the settings of the counter to appropriately match the desired functionality. You will need to set the name of your counter, type, current value, increment, minimum value, and maximum value.
4. Check if your counter is a shared counter or ISO counter, check the corresponding check boxes.
5. Click OK.

Serialization is essential in many regulated industries like pharmaceutical, food & beverage, chemical, and automotive because their products need to be tracked from their origin to their destination.

Barcode placement is another important component of barcode creation. You want to avoid quiet zones on the label, which are the blank spaces around the barcode (margins). Design elements can get in the way leading to the barcode interfering with the scan and resulting in incorrect data. Learn more about the 8 common barcode mistakes to ensure you are creating accurate barcodes.

TEKLYNX barcode label design software has built in wizards that make it super easy to start creating barcodes on your labels. These helpful wizards can also ensure security and compliance within your labeling environment, streamlining the entire process.

Why are barcodes important and what do they do for my business?

Barcodes play a crucial role in keeping the supply chain moving. While their main function hasn't changed over the years, their adoption has grown. Barcodes help increase efficiency by holding essential data and reducing errors that come from manual processes. They transform how businesses operate and manage their supply chains. Some ways being:

• Cost & time savings: Streamlining processes, improving inventory accuracy and eliminating inefficiencies, minimizing the need for manual labor.
• Inventory management: Streamlines inventory management by enabling accurate tracking. Barcodes help automate data entry and update stock levels in real-time.
• Reduces human error: Manual data entry is prone to errors, but barcodes eliminate this risk. By scanning barcodes businesses can ensure accurate data capture, eliminate human errors and maintain integrity throughout the supply chain.

When technology advances, so does barcoding. The 1D linear barcode will always have a purpose in the supply chain, but we are starting to see more uses of 2D barcodes and composite barcodes in manufacturing for traceability or food & beverage for providing consumers more information. Efficiency is going to continuously increase and improve the consumer experience with more data, unlocking new barcoding opportunities in so many industries.

How does TEKLYNX label design software help?

In the dynamic world of barcoding, it's important not only to have accurate barcodes but to have a true labeling partner that has a long history in the industry, compliant and up-to-date software, and continuous support. TEKLYNX is the perfect choice.

If you are new to barcode labeling and not sure where to start, download a free 30-day trial of LABELVIEW. LABELVIEW is a robust barcode label software that is easy to use, packed with great features and functions, cloud connections, and more!

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