Bar code labels are tags that contain encoded information. They are used to identify and list inventories in businesses that use a large number of goods. They are made of paper, vinyl, plastic or metal and have an adhesive surface underneath by which they can be affixed to the surface of the item.

Bar code labels use two primary techniques to encode the numerical information on it. One is the line bars technique. Special bar code software can convert an inputted number into a sequence of vertical lines of various thicknesses. The thicknesses of these lines and the spaces between them indicate the number they denote. Another technique is two-dimensional encoding, where information is coded in the form of a pattern of dots of varying thicknesses in a square or rectangular frame. In both techniques, it is not possible by human eyes to decipher what number they indicate.

Bar code labels are designed by software using a computer. Sizes, colors and data fields are placed if required. Once the bar code template is created, it is printed on a specialized paper with an adhesive surface using a printer. Laser printers give good quality outputs, but there are also special standalone printers made expressly for printing bar code labels.

Once the articles are tagged with bar code labels, they get indexed on the database of the company. The bar codes on these labels can be deciphered using scanners. Bar code scanners are small handy devices, which can decode the bar codes into numerical and data information. Scanners can be fixed at a place or handheld.

Companies that have equipment and necessary expertise can design their own bar code labels. This is ideal for companies that produce a large number of goods per day. Some companies even customize their bar codes in order to suit their needs. Smaller companies and temporary businesses can buy preprinted bar code labels from the market. Preprinted bar code labels are available in bundles of hundreds.

Bar codes are very efficient in maintaining large inventory records for companies. It saves a lot of time, as every item is indexed in the register and only a simple scanning procedure enters its records in the required field. The entire process gets systemized and standardized, as a single bar code pattern will be followed for a single product throughout.

The use of bar codes is not limited to consumer products alone, but wherever there is a need of maintaining statistical information. Even consumer bills such as electricity bills, gas bills, maintenance taxes, ID cards bear bar codes.