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How Retailers Save Time and Improve Service with Bar Coding by Jeff Haefner

 We see it everyday. Millions of retailers are using bar codes
and scanners to check out customers and enter inventory. Even
small stores find that bar coding is practical because it speeds
up checkout, tracks stock, and assures pricing accuracy.

Unfortunately, not everyone uses bar coding technology properly.
And they don't reap as many benefits as they could.

Utilizing bar codes with your POS software will allow you to...

- Serve customers faster and improve service by quickly scanning
bar codes at the point of sale (POS) instead of typing a SKU.

- Reduce pricing and inventory errors. Scanning bar codes at the
POS is much more accurate than typing a SKU. The typical error
rate for human data entry is 1 error per 300 characters. Barcode
scanners can be as good as 1 error in 36 trillion characters
depending on the type of barcode used.

- Save time and improve efficiency. If all your merchandise is
bar coded you can save time by checking out customers faster,
instantly implementing mark downs and eliminating the problem of
price tag switching.

- Quickly count your inventory at any time. If you purchase a
PDT (portable data terminal) you can count and enter your
inventory by scanning each item with a PDT. The PDT will store
your inventory count so you can quickly upload it into your POS
software.

- Reduce costs. If you have UPCs on your merchandise then you
don't have to put the price tag on the product itself, which
saves time and reduces handling costs.

- Improve the accuracy of your inventory. One of the biggest
cost savings and benefits is maintaining a more accurate
inventory. Bar coding reduces errors at receiving and at the
point of sale so your inventory stays accurate.

HOW IT WORKS

First of all, a bar code is a series of narrow and wide lines
printed on a label or tag. Each bar on the label represents a
character for a "bar code reader" to interpret.

You can scan the bar code with a bar code reader which uses a
photosensor to convert the bar code into an electrical signal as
it moves across the bars. The scanner then measures the relative
widths of the bars and spaces, translates the different patterns
back into regular characters, and sends them on to a computer or
portable terminal.

Most bar codes look similar but they can have different
symbologies or standards. The symbology defines the width of the
bars and the technical details of a particular type of barcode.

For example, the UPC (Universal Product Code) is seen on almost
all retail products in the USA and Canada. And EAN-13 is a
common code used on European retail products. Your bar code
reader and inventory software will need to be setup properly to
read the "symbology" that you use.

WHAT YOU NEED

You'll need the following items to start using bar coding...

1. POS - Inventory Software that supports bar code scanning at
the point of sale.

2. A bar code scanner that's compatible with your POS software.

3. Merchandise that's properly labeled with bar code symbologies
that your POS software and scanners can handle.

4. A bar code printer (if all your merchandise comes with UPC
codes you won't need this).

HOW TO GET STARTED

Step 1 - Decide if you need a bar code printer. If ALL of your
products already have UPC codes then you can probably use those.
Otherwise you'll have to buy a "bar code printer" and create
your own bar code labels.

Step 2 - Contact your POS - Inventory Software Vendor to find
out which scanners and bar code printers they support. You'll
need to purchase a bar code scanner and possibly a bar code
printer.

Step 3 - Ask your software vendor how to setup your POS -
Inventory Software to handle your bar code printer and scanner.
Then get your software ready to print labels and scan items at
the point of sale.

Step 4 - Get ALL of your merchandise bar coded and entered into
your POS software. You'll need to use your POS software to print
bar code labels for ALL merchandise that doesn't have a UPC
code. (Once you get everything labeled you can print and label
new merchandise at receiving.)

You'll also need to make sure that the inventory in your POS
software has the appropriate UPC code associated with each item.
Some of your suppliers might be able to provide "electronic
price files" which can be loaded into your POS software. The
price file would include SKUs, prices and UPC numbers. Otherwise
you'll have to manually associate a UPC number with each
inventory item. Again, you'll need to contact your software
vendor to learn how to do this.

Step 5 - Make sure your POS software has accurate pricing and
each inventory item has bar coding configured.

Step 6 - Now all you have to do is scan items at the register
instead of entering the SKU. The SKU and price should get
entered into the POS system automatically.

If used properly, bar coding technology can help you check out
customers 20% to 50% faster and lower error rates by almost 4%.
Not only does this dramatically improve your customer service
but it saves time and lowers your overhead.

If you need help getting started with bar coding, it's best to
contact your POS - inventory software provider.

This article was published on Thursday 13 October, 2005.
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