
These 2D barcodes, now called quick response (QR) codes, can store a huge amount of data.
ITRACE FOR DUMMIES CODE
In the 1990s, Toyota supplier Denso developed a new, two-dimensional bar code format and made it freely available. And second, they became unreadable with relatively minor wear and tear. First, they couldn't store very much data. Here's an example of a barcode.īarcodes began to proliferate in the late 1970s, especially in the retail industry, but there were two big limitations for many supply chain applications. This innovation also gave rise to GS-1, an organization that issues and manages barcode standards around the world. Barcodes work by swapping out text characters for a pattern of parallel lines, and these lines can be easily translated into 1s and 0s by a computer. Finding the price for each item using a barcode is an automated lookup query, which is faster, more reliable, and more versatile than manually transcribing the price.

Barcodes replace the price tags with unique product identification numbers that are tied to a database. The introduction of barcodes was really an early example of digital transformation that involved collaboration between consumer goods companies and retailers. That was a slow, labor-intensive system: someone had to put stickers on every item, then the cashier had to key in the prices, and then everyone had to wait for a "price check on aisle 12!" I still remember The Old Days when all of the items in a grocery store still had price tags. The idea of creating codes that could be read by computers with optical scanners really started with the barcode. This week's newsletter is focused on QR codes, how we use them, and the threats they have introduced into our supply chains. But the widespread use of these machine readable symbols is also creating opportunities for bad actors, which has even prompted a recent warning from the U.S. It's no surprise that many companies have suddenly discovered the incredible power of quick response (QR) codes to share information and place orders. Since the start of the pandemic we've seen a move toward "touchless transactions" along with a growing need for "track and trace" capabilities.
