In this article, learn about:
What a barcode is
How barcodes are used
The segments of SSCC and UPC barcodes
Types of barcodes used in inventory and logistics
In the retail industry, understanding barcode segments and their function is key to ensuring packages and inventory get where they need to go. Barcodes are the standard in industries that rely on tracking orders, managing inventory, and verifying shipments. A barcode is made up of unique groupings, each performing vital logistical functions within a broader barcode system.
What is a Barcode?
A barcode is a label with parallel bars and spaces. Machines read the barcode segments to assign a value to the label. The most predictable place to see barcodes is at retail stores, where nearly all items have them for optical scanning in the checkout lane.
How are Barcodes Used in Retail?
Barcodes appear on everything from retail items and shipping cartons to library books and ID cards. They’re used in warehouses, distribution centers, and even on invoices. These codes enable barcode tracking, making it easier to locate products, verify delivery, and manage stock levels in real time.
Using barcodes improves the accuracy of inventory management and sales tracking compared to manual methods. They provide real-time data and enable precise control over stock levels. Barcodes are also easy to implement—employees can learn to use them with minimal training, making them a cost-effective solution. The upfront investment is relatively low and typically offers a quick return.
Types of Barcodes in Retail
Different types of barcodes are used depending on the application. Retailers use Universal Product Codes (UPCs) for individual products, while logistics providers may use GTIN-14 (Global Trade Item Numbers) for large shipments. Suppliers often use the Serial Shipping Container Code (SSCC) in logistics, which contains several vital segments. Each type includes unique data segments that work together to support tracking, identification, and inventory control.
To ensure consistency, businesses must obtain a company prefix from their local GS1 office before generating barcode labels. From there, they can use barcode software to format codes correctly and generate the necessary data fields.
The Segments of an SSCC Barcode
Barcodes usually have “quiet spaces” to the left and right of the code segments. These quiet spaces help scanners find the code and understand the barcode segments. A barcode’s black bars are what scanners read, while the printed numbers below serve as a backup for manual entry if needed.
The anatomy of an SSCC barcode includes several essential features that help maintain inventory and ensure accuracy with package delivery.
These features are:
Start code-C/function code
Application identifier
Extension digit
GS1 company prefix
Shipping container serial number
Check digits (CI and CD)
Stop character
Start Code-C/Function Code
The beginning segment of a barcode is the start code on a shipping container. It includes two non-data characters, then a function code. Label generation equipment automatically inserts the code before adding encoded numeric data.
Application Identifier
The Application Identifier is a two-digit prefix that defines the type and format of the data that follows. In the SSCC, the application identifier is “00,” indicating that the data is a Serial Shipping Container Code. The digits will appear in parentheses for human readability; they are not encoded in the barcode itself.
Extension Digit
The first digit after the application identifier is the extension digit, which increases the capacity for serial references within the overall SSCC number. It ranges from 0–9 and can be used to differentiate between types or groupings of shipping containers.
GS1 Company Prefix
Next comes the GS1 Company Prefix, which uniquely identifies the manufacturer or supplier. The length of the prefix varies depending on how many serial numbers the company needs. Common lengths are 7–9 digits. This prefix is assigned by the local GS1 office and is essential for maintaining uniqueness and traceability across the global supply chain.
Serial Number
The serial number is a nine-digit number from 000000000 to 999999999 and identifies a shipping container for one year. Logistics departments can identify individual containers and what is inside them, which helps them determine where items are at any time.
On Electronic Data Interchange (EDI) documents, shipping containers can have more than the nine-digit identifier for Advanced Shipment Notice. The containers have 17-digit ID numbers, including the shipping container type, manufacturer’s ID, and shipping container identification number.
The supplier creates and adds the number to the container. Suppliers must use the number for at least one year to accurately track the container and its contents.
Related Reading: SQEP e-Commerce Packaging and Labeling
Check Digits
The check digit is a single number at the end of the SSCC. It is calculated using a mod 10 algorithm based on the preceding digits. This digit ensures that the SSCC was scanned or entered correctly, adding an extra layer of data integrity. GS1 offers a check digit calculator for a variety of codes.
Stop Character
A non-data character called a stop character informs the scanner that the barcode is complete.
Barcode Segments on a UPC Label
Universal Product Codes (UPCs) are used on retail products to track inventory, speed up checkout, and ensure product accuracy across supply chains. These barcodes contain standardized segments that encode both company and product information.
Key Segments of a UPC Label
A typical UPC-A barcode includes 12 numeric digits divided into several parts:
Quiet Zones: These are blank spaces on either side of the barcode that help the scanner detect where the barcode begins and ends.
Number System Character (NSC): This is the first digit on the left, identifying the type of product or its general category.
GS1 Company Prefix: Assigned by GS1, this 5- to 10-digit number identifies the brand owner or manufacturer. The length depends on how many product codes the company needs.
Product Number: Assigned by the brand owner, this 1- to 5-digit number identifies the specific product. Combined with the prefix, it should result in 11 digits before the check digit.
Check Digit: The 12th and final digit is calculated using a mod 10 algorithm and confirms the integrity of the entire code. It helps catch common data entry or scanning errors.
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