What is BAR CODE..??
Barcodes are machine readable symbols in the form of numbers and parallel lines used universally to identity and track products. Barcodes play a key role in supply chains, enabling retailers, manufacturers, and transport providers to easily identify and track products as they move through the supply chain.
Why a Startup Should take Barcode
In point of sale management, barcode systems can provide detailed upto date information on the business, accelerating decisions and with more confidence. For example:
- Fast selling items can be identified quickly and automatically reordered.
- Slow selling items can be identified, preventing inventory buildup.
- The effects of merchandising changes can be monitored, allowing fast moving, more profitable items to occupy the best space,
- Historical data can be used to predict seasonal fluctuations very accurately.
- Items may be repriced on the shelf to reflect both sale prices and price increases.
- This technology also enables the profiling of individual consumers, typically through a voluntary registration of discount cards. While pitched as a benefit to the consumer, this practice is considered to be potentially dangerous by privacy advocates.
- Besides sales and inventory tracking, barcodes are very useful in logistics.
- When a manufacturer packs a box for shipment, a Unique Identifying Number (UID) can be assigned to the box.
- A database can link the UID to relevant information about the box; such as order number, items packed, qty packed, destination, etc.
- The information can be transmitted through a communication system such as Electronic Data Interchange (EDI) so the retailer has the information about a shipment before it arrives.
Shipments that are sent to a Distribution Center (DC) are tracked before forwarding. When the shipment reaches its final destination, the UID gets scanned, so the store knows the shipment’s source, contents, and cost.
Barcode in India
GS1 is a not-for-profit, global entity that manages and standardizes bar codes across India. GS1 sets standards and manages the barcode standard used by retailers, manufacturers and suppliers. Approximately two million companies across 20 industries such as Retail & Consumer Packaged Goods, Food, Healthcare, Transport & Logistics (including Customs), and Government etc. worldwide are using the GS1 System of standards. Therefore, GS1 is the organization that controls the issuance of barcode that can be scanned anywhere in the world.
In India, GS1 India was established in the year 1996 as a not-for-profit organization by the Ministry of Commerce and Industry, Government of India along with leading Chambers of Commerce and Industry. As an affiliate of GS1 Global, GS1 India administers and allocates GS1 barcodes in India.
Types of Barcode
Different application requires different barcodes with capability to hold different data. Therefore, to diverse requirements, GS1 sets standards for use with different types of barcode symbols. GS1 barcodes can be categorized into the following categories:
GS1 EAN/UPC Family Barcodes
GS1 EAN/UPC Family of barcodes is instantly recognisable barcodes that are printed on virtually every consumer product in the world. They are the longest established and most widely used of all GS1 barcodes.
GS1 DataBar Family Barcodes
DataBar barcodes are often used to label fresh foods. These barcodes can hold information like an item’s batch number or expiry date, in addition to other attributes used at the point-of-sale such the item weight.
GS1 1D Barcodes
GS1-128 and ITF-14 are highly versatile 1D barcodes that enable items to be tracked through global supply chains. The GS1-128 barcode can carry any of the GS1 ID keys, plus information like serial numbers, expiration dates and more. The ITF-14 barcode can only hold the Global Trade Item Number (GTIN) and is suitable for printing on corrugated materials.
GS1 2D Barcodes
Two-dimensional (2D) barcodes look like squares or rectangles that contain many small, individual dots. A single 2D barcode can hold a significant amount of information and may remain legible even when printed at a small size or etched onto a product. 2D barcodes are used in a wide range of industries, from manufacturing and warehousing to logistics and healthcare
Pricing for Barcode in India
The pricing for barcode registration in India varies based on the number of barcodes required, annual turnover of the company and the number of years barcode subscription is sought for. The following chart illustrates the cost for a company having an annual turnover of less than Rs.10 crores wishing to obtain 1-100 GS1 barcodes
|Subscription Period||Registration Fee (1)||Subscription Fee (2)||Security Deposit (3)||Service Tax (4)||Total Fee = (1+2+3+4)|
|For 1 Year||26000||8260||3000||5139||42399|
|For 2 Year||26000||15694||3000||6254||50948|
|For 3 Year||26000||22302||3000||7245||58547|
|For 10 Year||26000||78470||0||15671||120141|
Registration fee: This is dependent on product numbering capacity desired. This is determined by taking into consideration the total number of SKUs/product variants/product types that are currently available, and also what is likely to be added in the next few years.
Subscribers are expected to remit the subscription renewal fee on or before the expiry of the subscription validity period as specified at the time of initial registration or at the time of subsequent renewal of the same.
Security deposit: Interest-free, refundable security deposit payable once on registration which shall be refunded after cancellation/ termination of subscription by GS1 India.
The following is the price list for barcode in India from GS1.
Barcode price in India for 1 year
Barcode price in India for 2 years
Barcode price in India for 3 years
Barcode price in India for 10 years
Registered MSME businesses in India can enjoy a subsidy of upto 75% of cost of obtaining barcode in India.
Process for obtaining Barcode in India
Barcode can be obtained easily in India by submitting the following documents along with requisite fee to GS1 India for allocation of GS1 Company Prefix to be used for barcoding of products. The following documents must be submitted.
- GS1 India registration form duly filled and signed along with the “product classification sheet” duly encircling / highlighting the product categories being manufactured / supplied.
- Request letter / forwarding letter on letterhead for allocation of GS1 company prefix number.
- Copy of balance sheet (relevant page in support of sales turnover) as on 31st March, 2016 or latest.
- PAN card copy of Proprietor – in case of Proprietorship firm or PAN card copy of the applicant company in other cases.
- Proof of status of Applicant Company (for Proprietorship firm – VAT Registration Certificate / Partnership deed; for Private Limited Company / Limited Company – Certificate of Incorporation)