In 1973, a team of executives and advisors from the grocery industry selected IBM's UPC bar code as their standardized marker for information about the product and the manufacturer. IBM was one of the first suppliers of scanning equipment to the supermarket industry, and today is one of the largest global vendors of bar code scanning products to retail and other industries.
The UPC was proposed by IBM and accepted by the industry. While other companies, including RCA and NCR, had submitted proposals, IBM won the industry’s acceptance and business. But the road to that point was not without its obstacles. Demanding executives, technological barriers and the very essence of human nature held the potential to stop the project at virtually every stage.
An uphill battle
“A number of factors provided the impetus for organizations involved in the food industry to form an 'Ad Hoc' committee to investigate a solution to the problem of rising sales costs. In 1970, they decided to establish a committee that would be made up of only 10 members and each would be a CEO, President, or Chairman of the Board of their respective companies. Also each member would be allowed to bring only one technical advisor. Executives on this level would have the authority to commit their company without delays required for approvals. The companies represented had to include all facets of the industry, large and small. This committee was so key to the [UPC's] development.”
“The main challenge was that the symbol had to be printable on all types of printing presses that were in use at that time. And at that time—1973—some companies were using printing presses that were built actually before World War I. The quality was poor—if you recall, yoghurt came in wax containers, some were printed with rubber stamps. The circular code presented a major problem in two respects. The minimum bar width was too small, and the circular bars would smear in the direction of the press. So we came up with a linear bar code, and a way to scan that code in an omnidirectional fashion.”
Centennial interview
2010“My idea originally came from seeing the black-and-white patterns of motion picture optical sound tracks, and then the 'dash-dot-dash' pattern of Morse code. In both of these, a rapidly changing series of signals conveys information. That's essentially what bar coding is ... a non-verbal symbol ... a Morse code for reading a label.”
IBM press release
June 23, 1992“The headquarters were at IBM Research Triangle Park, but we were working mostly out of a rented building in Raleigh proper. We didn't have the scanner or the presses to test our theories on, so we had to test it using pure math. Our proposal was based 100% on mathematics.”
Centennial interview
2010“Well the only real glitch we really had became a joke among the team: the ‘golden chicken’ and the ‘platinum pork.’ It hit us off guard—our test and our arithmetic showed us that we shouldn’t have run into this. What happened was the mark symbol that was printed in-store was different than the ones made at the manufacturer in that the price itself isn’t embedded into the code … What happened was that there was a misread that read that price wrong, and it charged $99.99/lb for chicken.”
Centennial interview
2010“We learned something very important about people. We learned that people will forgive the cute little grocery store clerk if she mischarges by a few cents. If the clerk charges you 97 cents instead of 79 cents, no big deal—that’s okay, it’s no real problem. But we don’t forgive computers, no matter how bad they are. If a computer charges you too much, all heck breaks loose!”
Centennial interview
2010“It was slow to be accepted. It makes sense why it was slow—it’s the chicken and the egg. The grocery manufacturers didn’t want to put symbols on their packages unless there was something in the store to read them. And of course the stores didn’t want to invest in the equipment unless there was something to read. It was slow coming about and at one point the Wall Street Journal said it was a complete flop. It took until about 1977 for the UPC to really take off.”
Centennial interview
2010While Laurer was inspired by Joe Woodland’s revolutionary breakthrough of the bull’s-eye bar code, he was concerned it was the wrong design execution. The bull’s-eye took up too much space and had other shortcomings that would quickly make themselves known. In fact, Laurer was so passionate that he laid it all on the line.
Gut instinct
“[My boss] wanted me to write something up that said the RCA [bull’s-eye] proposal was the greatest thing since sex, but my nature and my training would not allow me to support something I didn’t believe in. ... I simply went against my manager’s instruction and set out to design a better system.”
“My manager lived across the street from me so when I saw him arrive home from his vacation, I went over to his place with the charts and explained what I had done. He had no choice but to agree, but he also made it clear that if I was wrong or if I could not sell the idea to the brass it would end my career, not his. I was truly playing 'bet your job' by designing a new code and symbol rather than supporting what the brass wanted. My arguments must have been persuasive since I was allowed to continue with my approach in lieu of supporting the bull's eye.”
"AIDC Memoirs," The New Scientist
2004“At the end of a flawless demonstration for Mr. Evans, we had our ace softball pitcher pitch bean bag ash trays, with symbols on the bottom, as fast as he could over the scanner. When each one read correctly, Mr. Evans was convinced.”
"AIDC Memoirs," The New Scientist
2004On June 26, 1974, shopper Clyde Dawson handed cashier Sharon Buchanan a 10-pack of Wrigley’s Juicy Fruit chewing gum at the Marsh Supermarket in Troy, Ohio. When the gum’s UPC rang in at 67 cents, a new era in information transfer was born.
A lasting impact
“I didn't really know what the magnitude of the impact would be. We were looking for an easy way to use some of this new technology to encode data in machine-readable form. [Laurer’s innovation of the scanner provided] an easy and reliable way to encode and decode UPC data.”
The result of decades of work, investment, and unprecedented cooperation in the grocery industry, the UPC symbol today is generating $17 Billion through the grocery channel alone in annual savings for manufacturers, retailers, and consumers.
PricewaterhouseCoopers
1997“I guess we didn't know what we started. I always liked to take complex things and make them simple. I'm glad that this one worked so well.”
“There are over 400 codes available today. The UPC is very unique. It's the one that proved to the world that barcodes were a truly viable way to mark things. It changed the game.”
Centennial interview
2010