Poor inventory management can have a negative impact on business in terms of losing customers and revenue. If you’re stocking inventory, then keeping track of SKUs in your warehouse can be cumbersome if you’re relying on manually updating data in ledgers or Excel sheets.
For any business, small and medium alike, that has inventory to manage, a barcode inventory management system can increase efficiency in small but significant ways. It can help you save time and money and minimize errors while keeping track of inventory. So before we deep dive into the benefits of a barcode inventory system, let’s understand what a barcode is.
A barcode is a small image of lines (bars) and spaces that is affixed to retail store items, identification cards, postal mail to identify a particular product number, person, or location and to track warehouse inventory. Barcodes are given to items you want to classify, their own unique number for quick identification.
It is important to understand the basics of barcode inventory system before implementing it. There are two components in a barcoding system- the hardware and software.
Barcodes generate huge amounts of data which needs to be stored, read, decoded and analyzed. This is why corresponding computer software is required for that information to be kept safely under a single platform. Barcode hardware like scanners is used to scan this data which is then interpreted by the barcoding software.
Regardless of the scale and type of the business, barcode inventory management system has gained immense popularity throughout a wide spectrum of industries due to some intrinsic benefits it provides on account of its speed and functionality.
While manually entering numbers and codes can be a pain, barcoding is super easy.
On an average, almost 10 in 1000 keystrokes entered manually are prone to errors while a mere 1 in 10,000 scans can go wrong. This affords barcoding a high level of accuracy.
With the help of wireless or portable barcode scanners, the process of scanning inventory can be completed much faster because the need for manual labor is reduced. Barcodes can increase the speed of sales transactions and help you provide more efficient customer service. Integrating barcodes with an inventory management system can slash time while preparing shipments.
Time is Money. So, if your warehouse is disorganized, locating, picking and packing items will be a time-consuming process for workers. Not to mention it will lead to delays in shipments and order processing.
A mismanaged warehouse can also lead to incorrect information on stock levels leading to overstocking or understocking. Barcoding eliminates these possibilities as inventory can be tracked throughout the production line all the way up to a sale in an increasingly efficient manner. It makes it easier for warehouse operators to organize items sensibly so they can locate products correctly and make accurate re-order decisions based on real-time data.
Barcode inventory systems don’t require complicated setups. They can be configured quickly and easily with minimal cost. They don’t need convoluted hardware or equipment which takes weeks to arrange and its presence on the cloud makes it accessible to all. This is the reason barcode inventory management system can be utilized by most business, despite their size and spending capacity.
If you are keeping slow-moving inventory or dead stock in your warehouse, it can become an unnecessary expense over time. Therefore, it is important to know the status of your inventory. However, without the right tools, it is nearly impossible to know which inventory is selling and which is not. This is where a barcode inventory management system can come in use because monitoring inventory levels is essential for precise demand forecasting and inventory control.
Efficient tracking of your inventory can be a boon for your business in countless ways. A barcode inventory management system gives promising results when it comes to taking care of your inventory. It can read and process barcode information swiftly to help you manage your inventory effortlessly.