GSI TZ National Limited's barcode technology is steadily revolutionising the business environment for the Small and Medium Enterprises (SMEs) in particular.
Besides playing a key role in identifying bottlenecks and inefficiencies in the supply chain, the barcode system has proved to be instrumental in promoting competitiveness of the domestically manufactured goods.
The introduction of the barcode is among the government moves to support SMEs to tap the opportunities available under different markets - the East African Community (EAC), the Southern African Development Community (SADC), the European Union (EU) and the US's duty and tariff free African Growth and Opportunity Act (AGOA).
The barcode system facilitates traceability - the automatic identification and data capture on the products - providing information to consumers through identifying the product, its manufacturer and country of origin as well as date of manufacture, expiry date, inventory number and compliance with national and international standards.
The barcode technology has 18 months since it was introduced in Tanzania, but it has so far received an exceptional acceptance by SMEs, with about 8,000 products having issued with the barcode already and GSI (TZ) National Limited registering over 400 companies.
GS1 (TZ) Chief Executive Officer Fatma Kange says there is positive response to the technology and rising awareness on the use of barcodes in the domestically manufactured goods. The barcode, argues Ms Kange, communicates the safety and quality of the product to the end user, boosting the consumer's confidence on the purchased goods.
The barcode technology compels manufacturers to adhere to quality standards of the products, a necessary component in the competitive market. "The use of barcode technology has boosted sales of domestic products in super markets, leading to increased production to meet the expansive demand," Ms Kange told the 'Business Standard' in an interview in Dar es Salaam over the weekend.
Through provision of information on suppliers or customers involved in potential food safety issues, for instance, traceability can enable recalls or withdrawals of targeted products from the market. Ms Kange says publishers have recently started acquiring and branding their products with the barcode, leading to penetration of published materials to modern shops - supermarkets within and outside the country.
So far, says the CEO, a total of 15 publishers have acquired the barcodes that have opened the door for the local publishers to the digital world where they can sell their published materials electronically. Tanzania's publishing industry remains one of the least developed in the world, publishing merely 400 books annually.
The industry trails that of Kenya and Uganda, offering peanut in terms of revenue generation and job creation. The UN Educational, Scientific and Cultural Organisation (UNESCO) describes Tanzania's publishing industry as nascent, with little contribution to the government coffers.
Tanzania is ranked the 98th in the world printing index while Kenya and Uganda occupy the 87th and 90th positions, respectively. The industry sources say branding the published materials with the barcode would widen the market and increase revenues to the publishers and the government through payable levies and duties.
GS1 (TZ), through partnership with Tanzania Food and Drugs Authority (TFDA), has ventured into the health sector. The barcode will help to trace the entire treatment process of the patient particularly when visiting different hospitals. "The system will definitely help the medical doctors to trace the patient's treatment history and ensure patient safety," assures Ms Kange.
Launching the GS1 Five-Year Strategic Plan recently, Prime Minister Mizengo Pinda said the use of barcodes aims at facilitating the industrial sector growth to 15 per cent for the country to achieve its 2025 vision of becoming semi-industrialised.
It is high time the business community in the country embraced the use barcodes for economic prosperity of the country. Tanzania is a member of GS1, an internationally established organisation responsible for the provision of bar codes, traceability services, e-commerce and other trade related issues in the world.
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