While barcode labeling has been in use to manage inventory for over 20 years, it is an often overlooked method in manufacturing, retail and distribution. Not only is it a cost-effective system, but it has also proved to be efficient at reducing overheads and delays while providing up-to-the-minute inventory status.
If used optimally, i.e., integrated with the business information system, barcoding speeds up the entire data recording process. The integration allows for complete inventory cycle counts, and the reconciliation takes a shorter time as well. It will enable you to track movement right from receiving, through picking, packing and shipping.
With all of the above in mind, it becomes clear that no matter the size of the business, inventory management using barcodes is an effective way of saving costs, shortening timelines and most importantly, precise handling of products. Here are some ways in which barcode inventory management improves your bottom line:
Cost-Effective
The most important and obvious advantage of barcode inventory management is the cost-benefit that comes with it. The price for barcode labels is extremely low, so it is an easy upgrade to execute. The second cost benefit is that the barcoding system reduces the need for more labor as it helps you minimize checker time. This means you reap the benefits of a smaller payroll. Additionally, having the inventory information at your fingertips means you can manage inventory more efficiently, and reduce inventory levels, thus saving on warehouse handling and overheads.
Eliminating Errors
Errors are unavoidable when keeping track of inventory. But it is the difference in the frequency of errors that makes a case for barcoding. The difference in accuracy for data entry is significant. Besides this, a smart automation implementation will also reduce errors in the interactive barcode system. This means less time will be spent on error correction, reducing labor costs for the same and also saves the business from the fiscal consequences of acting on incorrect or inaccurate information.
Access to Information
Since the data from the barcode scan is uploaded directly to the central computer system, the information about pricing and inventory is available almost instantaneously. The information on a barcode is highly customizable and adaptable to businesses, so you can see relevant information based on what your needs may be. A barcoding system can collect information that may be hard to gather otherwise. This allows managers to make better and more informed decisions in a short duration, saving the company time and money.
Security
Businesses need to be tightly run to ensure the safety of stock and products. One of the several benefits of using barcode inventory management is that barcodes are trackable. That means barcode strips and scanners can be installed at designated loading and unloading areas, preventing theft or loss of goods, reducing the effects of negative handling further down the supply chain. Barcoding also ensures that there is an extremely low rate of mistakes. This helps build customer trust and prevent costly errors in industries that rely heavily on accuracy.
Simplicity
Most interactive systems for barcoding use a standard programming and error checking technique. This allows for data to be processed and checked in real-time. Unique barcode labeling means that specific information can be allocated to particular items in the inventory. This allows for the quick and easy recalling of items with just a scan.
The simplicity of the barcode inventory management reduces the time spent on employee training. Reducing the time needed to master the entire process means training costs are significantly reduced and the employees are not burdened with learning the entire inventory or its pricing. Shortening the training process also cuts costs for the business, saving on both trainees and trainers.