Keeping track of thousands of things without mixing them up is a huge job. A barcode inventory system is a great tool for any-sized company, as it helps them control stock and reduce errors.
Using black-and-white striped labels, a product-recording system acts as an automated helper, making it less time-consuming and complicated to track and manage products. Read on to learn about the overview of how the barcode inventory system works.
What Is a Barcode Inventory System?
Using barcode labels and scanning equipment, a barcode inventory system tracks the following details, just a few of the items represented by the unique barcodes assigned to each product.
- Products
- Product IDs
- Descriptions
- Batch numbers
- Storage locations
Barcode inventory software records all information instantly and updates it as the barcode is scanned.
Such a system allows real-time viewing of stock levels, eliminating the need for manual data entry. The most accurate inventory tracking is achieved from the time goods are delivered until they are dispatched or sold.
Key Components of a Barcode Inventory System
The seamless operation of a barcode inventory system results from multiple components working together. Each element is crucial to maintaining speed and accuracy.
Barcode Labels
Barcode labels are printed tags attached to products, cartons, or pallets. These labels contain barcodes that represent product data. The labels must be clear, durable, and easy to scan, especially in warehouse environments where handling is frequent.
Barcode Scanners
Fixed or portable units, barcode scanners are devices that interpret barcode labels. Once the barcode is read, the information from the labels is updated in the inventory system. Warehouse mobile, corded, or wireless scanners may be used, depending on the warehouse’s requirements.
Inventory Management Software
The barcode inventory system’s central component is the software. It tracks product movement, generates reports, updates stock levels in real time, and stores inventory data. Managers can use it to plan reorders and monitor stock availability.
Database and Integration
A centralized database stores all scanned data. For smooth operations, the system can also interface with other business software, like
- Accounting programs
- Enterprise resource planning (ERP)
- Warehouse management systems (WMS).
How Does a Barcode Inventory System Work?
An operation of the barcode inventory system is straightforward and effective. Here’s a detailed explanation.
Step 1: Assigning Barcodes to Product
A single barcode identifies every item in a warehouse. The most essential product information is the data stored in this barcode. Barcodes are printed on barcode printers and affixed to products or packages.
Step 2: Receiving Good
Once new stock is delivered to the warehouse, employees go around and physically scan the barcode of each item. Consequently, the system maintains real-time stock levels and stores product details. In addition, it lessens mistakes in the receiving process and provides a double check of the quantity of the products received.
Step 3: Storing and Moving Inventory
When products are being transferred within the warehouse, such as from the receiving department to storage or from storage to picking areas, barcodes are scanned again. This information is used to update the system with each item’s new location, ensuring accurate tracking.
Step 4: Order Picking and Packing
Barcodes are scanned again when goods are transferred throughout the warehouse, such as from receiving to storage or from storage to the picking area. This ensures precise tracking by updating the system with each item’s new location.
Step 5: Shipping or Sales
When products are shipped or sold, the barcode is scanned once more. The inventory system deducts the item from stock in real time. This ensures inventory records always match physical stock.
Types of Barcodes Used in Inventory Systems
Depending on the business’s needs, various barcode types are used.
1D Barcodes
The conventional black-and-white striped barcodes are known as 1D barcodes. Retail and warehouses use them extensively. The following are typical examples
- Code 39
- Code 128
- EAN
- UPC
. Limited but crucial data is stored in these barcodes.
2D Barcodes
QR codes and other 2D barcodes can store more information. They are great to use if you want to have links to digital files or in-depth information. However, warehouses still prefer 1D barcodes for their daily operations.
Benefits of Using a Barcode Inventory System
Businesses of all sizes can benefit greatly from implementing a barcode inventory system.
Improved Accuracy
Barcode scanning minimizes these errors by entirely removing the process of manually entering data. This lessens the chance of human error, such as inaccurate product counts or records. Consequently, there will be more reliable inventory data.
Faster Operations
Barcode scanning is significantly quicker than manual recording. Rapid picking, packing, shipping, and receiving allow warehouses to handle higher volumes more efficiently.
Real-Time Inventory Visibility
Every scan updates the inventory data immediately. Managers can prevent shortages and surplus inventory by monitoring stock levels in real time.
Cost Savings
By minimizing stock losses, boosting productivity, and reducing errors, barcode systems help lower operating costs. Improved Inventory management with barcodes also reduces unnecessary purchases.
Better Decision Making
Businesses can better plan procurement, identify slow-moving items, and analyze inventory trends with accurate data.
Industries That Use Barcode Inventory Systems
In many different industries, barcode inventory systems are essential to their operations. Retailers use these to track what’s in their storerooms and on shelves. They are critical to transportation firms and distribution centers for accurate stock level management and order fulfillment.
Factory areas use barcode schemes to keep records of the supply materials and products that have already been manufactured. Besides that, the healthcare, pharmaceutical, and food sectors are among the users of these systems, which primarily support batch tracking and expiry dating. Any industry that handles tangible products can benefit from implementing a barcode inventory system.
Choosing the Right Barcode Inventory System
While picking out a barcode inventory system, the companies need to think about their warehouse size, the kind of products, and the workflow. The chosen system must be user-friendly, expandable, and compatible with the current software.
Also, the company needs to consider the quality of the hardware, the software features, and the support services. A well-designed system will be a source of value for a long time and ensure that operations run smoothly.
The Final Words
A barcode inventory system is an impactful tool that makes inventory management much easier and improves warehouse efficiency. The whole procedure takes only a couple of minutes using barcodes, as different barcode scanning devices automatically track products. This allows businesses to have real-time inventory visibility, reducing mistakes and speeding up operations. The Barcode labeling system is the main drive through which all the product changes from the arrival of goods to the shipment of the final products are accurately recorded.
