When you buy some products like biscuits, chocolates, flacks, etc you can see some bar codes on that product. Doubt may come to your mind that what it is. This post clears your doubt by giving full information about that code.

It informs you about the meaning of digits in universal product code, the importance of code, its types and it also tells about the steps to be followed to get the code for your products.

Definition

Universal Product Code (UPC) is a 12 digit special code that is assigned to every item sold in the store. The code helps in identifying the product, store traffic trends, and also inventory details. This helps further in maintaining robust ordering information for the business.

It provides all the real-time data to the store or the super-market to ensure that they never run out of stock for the fast-moving items. It also makes the billing system easy and swift.

UPC-A and UPC-E are two main types of Universal Product Code. UPC-A includes zero and UPC-E does not include zero.

Understanding the Universal Product Code

The first 6 digits are a unique code that is provided to the vendor. The vendor will have the same code even if the store differs. The next 5 digits act as the unique reference that is specified for the product and the last digit will be the check digit which is generally used to cross-check if the UPC for the product is correct or not.

The UPC is scanned against a scanner that reads the bar code and lets the system know if everything is fine or not.

What are the steps to get Universal Product Code(UPC) for a product?

  • The first step is to get the GS1(Global standard Organization also known as Unifor Code Council) company prefix. To get it you have to fill online application form and signup for a prefix capacity plan. It shows the number of universal product codes you can get under your company prefix.
  • You have to pay the fee for the code. A prefix capacity plan can be expensive. So make sure that the plan you have chosen will accommodate the long-term use of your business.
  • Once you pay the fee GS1 allocates a 6 digit number that is the manufacturer identification number.  This number becomes the first 6 digits of the universal product code on all the products of your company.
  • After getting your company prefix you can give internal product numbers (5-digits) to your product. You have the freedom to choose your own digits but each product should have a unique UPC. Make sure that the same number is not used for more than one product. This 5-digit  number represents the product itself.
  • After generating your company prefix and internal product code generate your check digit. It generates after several calculations by adding and multiplying digits in the code based on an algorithm monitored by the global standard organization(GS1). Manually also you can calculate the check digit.
  • Confirm check digit is correct or not. If the check digit is incorrect UPC would not scan properly.
  • Once all three sets of digits that is company prefix, internal product code, and check code generated register this number with GS1 so that your product information will be tied to the number you have created.

How does the bar code help?

  1. One of the biggest advantages of using UPC is that it controls the possibility of human errors while billing thus providing exact details to the firm. It also saves time that is wasted in manually entering all the details.
  2. The UPC is easy to be designed and printed. The company does not have to spend a fortune on this. The data thus collected from the system can be utilized for several useful purposes such as inventory management, demand forecasting, order placing, and many others.
  3. The same data extracted can be used by several disciplines of the business such as finance, store department, planning, and so on.
  4. Data is available for use within no time as everything is captured in an instant.
  5. Helps the business to perform better and also assists in better business decision-making policies.

The main disadvantage of bar code is bad printing quality and color combination. When the color combination between the bar code and packing paper of the product is the same, then it is difficult to scan and read the bar code.

Get more definitions about Universal product code and other ERP related terms here.

   

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