The Barcode turns 50 and Doubles in Power

Fifty years after its debut in an Ohio supermarket, the barcode that identifies retail products is evolving into a new two-dimensional format, offering consumers with more information and enhancing efficiency for retailers.

On June 26, 1974, a supermarket cashier in Troy, Ohio, made history by scanning a barcode on a ten-pack of Wrigley’s Juicy Fruit chewing gum with a Magellan Model A scanner. Developed by Spectra Physics, now part of the Italian multinational Datalogic, this was the world’s first fixed retail scanner.

The ability to automatically identify products at checkout marked the beginning of a new era, revolutionizing the retail industry with unprecedented speed and accuracy. Fifty years later, this innovation remains indispensable.

As a pioneer in identification technologies, Datalogic has recognized the vast potential of barcode from the start. Building on its early success with scanners like the Magellan Model A, the company has become a leader in the retail automatic identification market. Datalogic has consistently remained at the cutting-edge of technological advancements to better serve its customers. Beginning with the development of the first 1D scan readers, the company later led the way in using imager technology in scanners, and has recently elevated performance by integrating the latest AI-based technologies.

A new information-rich two-dimensional code

We are at a critical turning point as the retail industry gears up for the rollout of the GS1 Digital Link, a
groundbreaking product identification code, which will gradually appear on all consumer product packaging by 2027, complementing the traditional linear barcode.

The GS1 Digital Link barcode is an upgraded version of the traditional barcode, embedding digital
information accessible via a URL. This creates a direct connection between a physical product and its
associated digital content.

The new GS1 standard QR code will enable consumers to instantly access up-to-date information about
products they are considering purchasing by scanning the packaging. This includes details of ingredient
origins, allergens, usage (such as cooking tips and recipe suggestions), recycling or disposal guidelines,
nutritional values, and much more.

The code will also include detailed information about the specific package, such as the expiration date,
production lot, or a unique serial number. This data can be integrated into retailers’ point-of-sale systems,
improving security, streamlining procurement processes, and minimizing the risk of fraud.

Fabrizio Pareschi, Datalogic’s Global Account Manager, stated, “Consumers will be empowered to make
more informed purchases by gaining insights into the environmental impact of the products they buy. They will have access to detailed information, such as the origin of a product and its ingredients, as well as guidance on how to recycle or reuse packaging. Retailers and supply chain companies can offer
personalized content, promotions, or offers tailored to consumer preferences or location. In addition, the new GS1 standard enhances traceability throughout the supply chain, aiding in the fight against counterfeiting and improving product recall management.

“It also optimizes inventory, warehouse management, and logistics processes by integrating with enterprise ERP and CRM systems. For these processes, Datalogic is the ideal technology partner, offering solutions for point-of-sale and data management through professional mobile computers like the new Memor 30/35. It is the perfect tool for tasks such as inventory management, price control, and stock replenishment. All Datalogic retail products are already fully compatible with GS1 code management.”

The role of software, systems, and artificial intelligence

So, how is the retail industry gearing up for the introduction of these new two-dimensional codes? Michele Benedetti, Chief Technology Officer at Datalogic, explains: “Our goal is to ensure that reading these two codes on packages is seamless and rapid, maintaining the same level of reliability we currently have with linear barcodes. Our scanners and mobile devices can read both types of code simultaneously, with the same speed and accuracy. But the real game-changer will come from integrating smart systems and software to create innovative applications that improve the shopping experience, support sustainability, and give retailers a competitive edge. For example, our next-generation Magellan scanners are truly intelligent machines capable of processing not just product codes, but also images captured by in-store and point-of-sale cameras. This paves the way for innovative applications, such as advanced anti-theft solutions, which will make retailers more efficient and ready to tackle the challenges of a rapidly evolving market.”

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How Logistics Companies can ensure Smooth Cash Flow

Logistics firms can achieve smooth cash flow in peak periods, writes Pascal Chandler (pictured), business consultant at cloud-based accountancy software, bluQube

As the logistics industry gears up for the golden quarter, companies are focused on readying their operations to meet increased consumer demand. This period is vital for the sector, requiring meticulous planning in inventory management, workforce consolidation, and supplier coordination. However, while many companies are well-prepared on the operational front, an often-overlooked aspect is the robustness of their financial systems.

During peak retail periods, logistics companies encounter a surge in order volumes, fluctuating costs, and tight deadlines. Without an efficient and adaptable financial system, these pressures can quickly escalate into significant challenges, affecting both operational performance and financial health.

With that said, let’s assess how logistics companies can leverage financial technology to streamline their financial processes and ensure they are fully prepared for the demands of the golden quarter.

The financial strain of peak periods

The peak sales season presents unique financial challenges for logistics companies. The surge in consumer demand leads to higher transaction volumes, increasing the complexity of cash flow management. Companies must navigate rising operational costs, from fuel and wages to additional staffing and overtime pay. At the same time, they face the risk of delayed payments from customers, which can strain cash reserves and disrupt financial planning.

For companies relying on outdated or manual accounting systems, these challenges are even more prominent. Such systems often lack the agility needed to process large volumes of transactions quickly, leading to bottlenecks in invoicing, payment processing, and financial reporting. In contrast, adopting a cloud-based accountancy system can provide logistics companies with the tools they need to manage these challenges more effectively, ensuring smoother operations and better financial outcomes.

Automating invoicing to improve cash flow

One of the most significant advantages of cloud-based accountancy software is its ability to automate invoicing processes. During peak periods, the volume of invoices sent and received can overwhelm manual systems, leading to delays and errors. These issues not only hinder cash flow but can also damage relationships with suppliers and customers.

Automated invoicing streamlines this process by ensuring that invoices are generated and sent promptly, reducing the risk of errors and delays. For logistics companies this is particularly important, as they often deal with multiple vendors and transport partners, each with its own payment terms. Automated systems can also send out reminders to customers about upcoming payment deadlines, helping to minimise the risk of late payments and improve overall cash flow management.

Moreover, cloud-based systems enable businesses to receive purchase invoices from suppliers via email. Advanced features like optical character recognition (OCR) can read and automatically enter invoice data into the system, further reducing the administrative burden on finance teams. This automation not only speeds up the invoicing process but also frees up staff to focus on more strategic tasks, such as financial forecasting and cost management.

Real-time expense tracking and financial visibility

In addition to invoicing, cloud-based accountancy software offers powerful tools for tracking expenses in real-time. For logistics companies, which face a wide range of daily expenses – from fuel and vehicle maintenance to warehousing and labour costs – keeping a close eye on spending is crucial. By automating data entry and categorisation, these systems help finance teams quickly identify any areas of excessive spending that could impact cash flow.

The real-time nature of cloud-based software also means that financial data is accessible anytime, anywhere. This is particularly beneficial for logistics companies with operations spread across multiple locations, as it allows for seamless expense tracking and financial management across the entire organisation. The result is a more comprehensive view of overall spending, enabling better decision-making and more effective cash flow management.

Enhancing agility with real-time reporting

The ability to generate real-time financial reports is another key benefit of cloud-based accountancy software. In an industry where economic conditions can change rapidly, having up-to-date financial information is critical for making informed decisions. Real-time reporting allows logistics companies to monitor their cash flow closely, adjust their budgets as needed, and plan for different scenarios.

With detailed cash flow statements and reports, companies can categorise their transactions into operating, investing, and financing activities, giving them a clearer picture of their financial health. This level of visibility supports more accurate forecasting and long-term planning, ensuring that logistics companies remain agile and responsive to any challenges that arise during peak periods.

As logistics companies prepare for the demands of the peak sales season, it’s essential to ensure that their financial systems are up to the task. By adopting cloud-based accountancy software, companies can streamline their invoicing processes, improve cash flow management, and gain real-time visibility into their financial performance.

These benefits not only help companies navigate the challenges of peak periods but also position them for long-term success in an increasingly competitive market. With the right technology in place, logistics companies can enter the golden quarter with confidence knowing that their finances are in good hands.

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