Why is the barcode system essential for inventory management?

barcode scanner

Today barcode technology has become so widespread that many consumers take it for granted, but the technology offers unlimited benefits in a wide array of industries. With only some basic printing equipment and inventory software, businesses can bring more accuracy, speed, and efficiency in managing your inventory. Here are few more benefits that barcode brings to inventory management,

Minimizing error

The most prominent benefit of using barcoding is the intrinsic accuracy that is associated with it. When inventory data is entered manually into the spreadsheets or, even worse, handwritten on paper, the chances of significant human error increases drastically. Delivery rates for human-operated keystrokes are 10 in 1,000, and they are 1 in 10,000 for a scan from a barcode scanner. Errors in inventory can result in massive repercussions like delays in shipments, missed orders, and over or under stocking items.

Improved processing speed

When you are handling inventory in order to avoid errors, you have to spend some time examining packages, reading the information, and correcting data if there is any mistake. Barcodes can significantly improve your processing speed by reducing the act of reading and correcting data by just scanning the tag and synchronizing the information with your inventory management software. 

In warehouses, the workers can significantly scan hundreds of products within a few minutes using barcodes. Using your inventory tool and barcode system together, you can achieve optimum efficiency in inventory management.

Accurate tracking and organized storage

Often, shipment gets delayed due to disorganized storage and recording where the warehouse staff cannot easily locate and pick items for shipping. This also inevitably results in the excess ordering of items as the perception may be that they have run out of stock which might not be the case. Using barcodes in inventory management makes efficient tracking of inventory throughout the production process all the way to sale.  It also becomes much easier for staff to store items where they can easily locate them and make ordering decisions more accurate with correct inventory levels.

Safety and quality assurance

Compared to manual inventory management, barcode offers tighter control on quality and more accurate inventory tracking. This feature is desirable by every industry and imperative in industries like medical and pharmaceutical, where manufacturing needs to be accurately controlled and frequently audited. Due to tight control, the theft or loss of inventory can also be easily recognized and acted upon, thereby minimizing the problem of inventory shrinkage.

Equipment control

Usually, it is thought that barcodes can only be used for product and inventory; however, they just represent a generalized and clever way of storing information. Barcode scanners can also be affixed to equipment so that the location of equipment, especially small items that tend to go missing frequently, can be ascertained quickly and accurately. This drastically reduces the amount of time your staff spends on looking for them. There are many ways barcode systems can be utilized to achieve more efficiency.

Rapid acquisition of data

A significant amount of time can be saved by using barcoding and associated inventory software instead of traditional spreadsheets for handwritten methods when it comes to data acquisition. You can make quick and accurate decisions regarding ordering and inventory, and it is helpful to know that the right information is available rapidly, accurately, and in real-time. Other ways of inventory recording simply do not come close to this feature of barcoding systems.

Professionalism and customer involvement

Compared to handwritten stickers attached to a product as a unique identifier, a barcode that is neat and in black and white represents a more professional appearance. It is often valuable in business as the more professional looking the item is; it will be the preferred choice. 

Due to their ability to code several pieces of information in one place, Barcodes are being used to code factual information that may be interesting for the customers. Sometimes a barcode can represent fun facts about the product or the manufacturing company that can create customer interest and environment, which are both fundamental to satisfaction and loyalty.

Minimizes cost

Barcode technology once had a higher price tag, due to rapid increase in inventory industries, however, the barcode price is now affordable. Even small businesses can easily implement a barcode system and begin labeling packages and inventory. Many smartphones now include apps that can scan and interpret barcodes so users can download the information relative to the product directly on their phones. In a large organization, barcode technology can be a significantly cheaper solution than any other inventory management system.

Mark Funk
Mark Funk is an experienced information security specialist who works with enterprises to mature and improve their enterprise security programs. Previously, he worked as a security news reporter.