Peartree Software @ Fall Tradeshows!

Peartree Software will be an Exhibitor at the upcoming Canadian RV and Camping Convention held in Charlottetown, PEI.

This convention runs from October 27 to 30, 2005.  We hope to see our RV friends there!  Peartree will be demonstrating our new web-based Dealer Management Software application at the show.  Please drop by and enter to win an Apple ipod.

Peartree will also be at the 43rd Annual RVIA Trade Show in Louisville, Kentucky on November 29 through to December 1, 2005.  Peartree will be once again be a sponsor of the Canada Night Event. 

Raise the Bar with Bar Codes

By Dana Gledhill, Peartree Software

Data entry errors cost North American businesses over 600 billion dollars annually, according to a study by The Data Warehousing Institute.  It should come as no surprise that thousands of companies are turning to bar code scanning to eliminate the error-prone and time consuming task of manually entering data into a software application.  A bar code’s reputation is solid at a ratio of 1:3,333 – yes, one error for every 3,333 errors that you and I will make.  At those odds, it is easy to understand how a bar code label system in your dealership can improve your bottom line – from more accurate inventory levels, to increased customer service.  Even payroll and time keeping can benefit from bar code scanning technology.

Brad Campkin, owner of Campkin’s Camping Centre, implemented bar code technology for retail sales at his dealership.  According to Brad, the technology has “cut down on human input errors and made us more efficient.  It is easier to process sales, so our customers spend less time at the counter.”

 WHAT EXACTLY IS A BAR CODE?

If you look at a bar code, its simplicity is deceiving.  More than just a series of bars on a label or packaging, a bar code is your reference to an enormous capacity of information about a product stored within a software database.  A device called a bar code scanner is used to scan the bar code.  Once an item is scanned, you have a lot of information at your fingertips including the description, price, manufacturer, and quantity in stock.

A bar code symbol is composed of bars of varying widths and spaces.  It consists of a left and right margin, which is usually white space; this helps the scanner find the leading edge of the bar code so that it can begin reading the code.  When the bar code is scanned, light from the scanner is projected onto it.  This light is absorbed by the dark bars and reflected by the white spaces.  The reflected light is then converted to a code containing numbers and/or letters and stored on your computer.

There are numerous ways to arrange the numbers and letters which is known as symbology – a type of bar code language.  Each type of symbology has its advantages and disadvantages, which should be discussed with your bar code software provider to learn what will work best for your requirements.  UPC (Universal Price Code) is a well known symbology.  It is the standard bar code found on products at your local supermarket, for example.  Code 39 is another popular symbology. It is often used in custom applications because it can support both text and numbers.  Code 39 is one of the oldest bar code technologies, and can be read by most scanners.

WHAT DOES A DEALERSHIP NEED TO IMPLEMENT A BAR CODE SYSTEM?

Implementing a bar code system at your dealership is not complicated.  All you need are bar code labels to affix to your products, a scanner to read the bar codes, and software for your computer to communicate with the scanner. 

Bar Code Labels

Bar code labels can be obtained in two ways.  They can be pre-printed and ordered from a third-party supplier, or you can print them yourself.  Printing labels can be done economically with any laser printer or inkjet printer onto standard business labels, or you can purchase a specialty label printer or dedicated bar code printer.  Determining how to print bar code labels is very important. A higher quality label and printer means less chance for errors when the label is read by the scanner.

Although preprinted labels are the most economical way to get high quality bar code labels, they are not without their disadvantages. With preprinted labels, bar codes must be determined beforehand.  This is sometimes not possible or convenient to dealerships.  Preprinted labels must also be ordered in high volume, which is also not convenient for smaller dealerships.

Bar code labels can be printed using PC printers such as laser and inkjet printers.  Laser printers produce bar codes of comparable quality to the preprinted labels.  A major disadvantage is that laser printers print one full sheet of bar codes at a time, so it would not be advantageous to those who want to print a couple of bar codes.  Inkjet printers also produce high quality bar code labels; however, inkjet ink is water-soluble.  This means that bar codes printed using inkjet printers cannot withstand the weather, and therefore might not be suitable for products that are kept outdoors.

Many companies choose to use dedicated bar code printers.  Dedicated bar code printers come in two types: thermal and thermal transfer.  Thermal printers are inexpensive, produce high quality bar code labels, and are quiet.  On the other hand, thermal printers print at a very low speed, and use special heat sensitive paper that is more costly than normal paper used with other printers.  Thermal transfer printers are fast, and produce durable bar code labels. Thermal transfer printers are unfortunately not without their disadvantages.  They wear out print heads faster, making it more costly to maintain the printer.  The bar code labels also deteriorate in sunlight and become unreadable over time.

 Bar Code Scanner

Another important component required is a bar code scanner or reader.  The scanner is the most important determinant of success for a bar code system.  A scanner should be chosen based on volume and bar code label quality. If you need a scanner capable of high volume scanning, purchase a high-grade reader as they are fast and reliable. The most common scanners are wands, CCD (Charge-Coupled Device) readers, laser scanners, and fixed mount laser scanners.

 Wands are the most inexpensive of the scanners and work very well for scanning low volumes, which make them very attractive to small dealerships.  However, some training is required to use the wand, as it requires some skill.  The wand also requires that the bar code be of high quality and affixed to a flat surface.  This means that the scanner will not scan bar code labels on a part that is cylindrical in shape.

CCD readers are only slightly more expensive than wands.  The advantages of CCD readers over wands are that they require less skill to operate and can scan low quality bar codes.  However, CCD readers also require that the label is affixed to a relatively flat surface, making it unusable for very small parts containing many edges.

Laser scanners are the most expensive type of scanner.  They can scan both curved and uneven surfaces.  They can also read very low quality bar codes.  Laser scanners are considered to be the best type of scanner to purchase.

Software

Software to read the bar code and communicate with the computer can either be purchased separately or may be included with the scanner.  There are numerous software products on the market today to meet your dealership’s specific requirements.  Software that is included with the scanner is suited to dealerships where there might not be an IT department to install the software.

 Bar Code Technology and RV Dealerships

When asked about the ease of implementing bar code technology at his dealership, Brad Campkin replied, “It wasn’t too difficult. We were purchasing new shelving and hooks so that was the place to start.  I had the idea of pricing the shelf or the hook - not the product.  This allows us to change pricing easily without applying ‘double stickers’ on the product.  When price increases come through from suppliers, we can update retail pricing and make better margins on existing stock.  It also cuts down on human error when selling the product.  We also chose to implement in the off season when inventories were low and staff had more time.”

Brad recommends that other dealerships implement bar coding.  He noted, “The RV industry needs to embrace technological solutions.  Bar codes are just one more tool that allows dealerships to better manage parts inventories and to become more efficient.  If you want to grow your business you need to take advantage of all the benefits of computerization and inventory management.”

Bar codes are an effective and efficient means of improving your dealership’s bottom line.  Bar code technology helps you achieve significant cost saving by eliminating manual data entry errors and assisting you in managing your dealership’s assets.

HOW CAN A DEALERSHIP UTILIZE BAR CODES?

The following are examples of how bar codes can be used at your dealership:

• Inventory:
  Employees scan the products when counting inventory. The result is a more accurate and error-free count.
• Time and attendance:
  Employees scan their ID’s at the beginning or end of their shift.  This provides  precise tracking of time and attendance for payroll.
• Customer Service:
  Since inventory is more accurate, information about in-stock items are also more accurate, resulting in a higher customer satisfaction rating for your dealership.
• Shipping and receiving:
  Employees scan parts and inventory as they arrive or are shipped out.  This results in improved inventory management.

WHAT ARE THE BENEFITS OF BAR CODES?

• Accuracy:
  Errors such as mistyping or misreading a product number are common.  On average, humans make 1 mistake every 300 characters.  With bar code scanning, this error rate is 1 mistake every 1 million to 4 trillion characters, depending on the type of scanner used.
• Speed:
  Scanning a bar code is completed at a rate that is 5 to 7 times faster than a skilled clerk entering the same code.
• Ease of Use:
  A bar code system is very easy to use, and it is easy to learn.
• Reduced Costs:
  Due to the speed and ease of use, labour and training costs are reduced. Revenue losses due to data collection errors are also reduced due to the increase in accuracy.
• Cost Effectiveness:
  The payback period of installing a bar code system averages between 6 and 18 months.
• Improved Operating Efficiency:
  Employees spend less time on data entry, allowing them to spend more time on other tasks and improving customer service.

 Peartree Software offers bar code compatibility with RV Dealership, a fully integrated, software solution for RV dealerships.  With RV Dealership, it is not necessary to purchase separate software for the bar code scanners.  You simply plug in the scanner and start using it.  More information about RV Dealership can be found on Peartree Software’s website: www.ptsoft.com. You can also contact Peartree Software at 1-877-862-7327 or rvinfo@ptsoft.com for more information.