How can barcoding help in your supply chain and inventory management?

How can barcoding help in your supply chain and inventory management?

Digital & Technology

GlobalLinker Staff

GlobalLinker Staff

19 Jan 2021, 12:06 — 6 min read

A barcode, consisting of bars and spaces, is a machine-readable representation of numerals and characters. Barcodes have influenced almost every aspect of supply chain management and inventory management. They are an effective identification tool that help track products and greatly reduce errors.


There are several reasons why the use of barcodes for inventory and supply chain management will not only improve your daily operations but also boost your bottomline in the long run.

 

The use of barcodes makes business integration processes simpler and more efficient in the following ways:

 

1. Setting up barcoding software is simple

Barcoding software can be set up quickly and easily at a minimal cost. It does not represent a large-scale, complicated system that takes months to set up. Therefore, it is accessible to most businesses, no matter how small or large.

 

2. Reduces labour hours and costs

Barcodes offer automatic product identification, swift recognition, and implementation of data. What once took workers hours to accomplish can be achieved in minutes with barcode data collection. Scanning a barcode takes significantly less time than manually entering the information.

 

Barcodes allow workers to significantly reduce labour-intensive, manual processes by instantaneously identifying items, and automatically storing item information in the central computer system. Time saved in this way means more time to accomplish other tasks, increased productivity, and reduced labour costs. Any labour related to paperwork can be done away with completely, as all information can be entered and stored digitally. It also lowers costs for carrying excess inventory since knowing exactly what is in stock will help avoid ordering a surfeit of anything.

 

Barcodes allow workers to significantly reduce labour-intensive, manual processes by instantaneously identifying items, and automatically storing item information in the central computer system.

 

3. Enhances data accuracy and quality control

Using barcode to automate the data entry process can reduce or even eliminate errors that inevitably occur when data is entered manually. Being able to scan barcode labels using a mobile device instead of manually entering item IDs character-by-character can significantly streamline the process.

 

Lapses in the front-end eventually mean shipment delays when employees have to search for items that may not be in stock or are misplaced. In addition, data mistakes can lead to overspending when too much inventory is ordered. Barcodes enable improvement in data accuracy, which subsequently improve the accuracy of orders and shipments, as well as the quality control process.

 

4. Improves asset tracking

A firm grasp on your inventory and assets will help you to run your business much more efficiently.

Facilities can use barcodes to increase inventory visibility or gain stronger insight into the materials that come in and out of the facility. By attaching a barcode label to inventory items, you can trace your assets throughout the supply chain to:

  • Minimise shrinkage and loss
  • Confirm deliveries
  • Tackle counterfeiting
  • Enable recalls

 

Barcode technology in inventory practices enables timely and accurate information that helps to operate with greater efficiency and lower inventory on hand.

 

Time and resources are wasted with disorganised storage and recording, where staff cannot easily locate and pick items for production or shipping. Barcoding is an efficient way of tracking inventory throughout the production process all the way to a sale.

 

5. Provides security

All businesses aspire to keep their inventory and customers safe. Barcode technology prevents mistakes and mix-ups, which is not just an inconvenience to the end-user, but could be harmful to industries that require higher levels of precision. In addition, barcodes are traceable and fully auditable, promoting theft deterrence, and a reduction in loss and liability.

 

6. Barcodes are professional

When comparing a hand-written sticker attached to a product stating a unique identifier, bar codes are standardised in appearance, neat and professional in appearance. In business, perception is important, and the more professional looking item will be the preferred choice.

 

Barcodes and QR codes, due to their ability to code several pieces of information simultaneously, are being used to code for information that may be interesting for customers. Using a barcode to represent extra, fun facts about the company or the product can create customer interest and involvement, which are vital for customer satisfaction

 

Barcoding is an easy and accurate way of recording information, tracking inventory, and helping to streamline the supply chain and inventory management system. Register your products with GS1 Barcode Numbers - the only authorised body to provide universally unique barcodes in India.

  

Image source: shutterstock.com

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