• Barcode Ireland Team

10 benefits of barcodes for warehousing operations.

Updated: Oct 19, 2020

The importance of an accurate, fast, reliable barcoding inventory control system in your warehousing operations.

Warehouse building.

1. Better inventory management


Barcode scanning solutions are essential for warehousing operations. The barcode allows for the fast and effortless tracking of products through the supply chain from manufacturer/supplier, to the warehouse, to shipping and onto its final destination. Customers receive accurate real-time updates on the progress of their order resulting in customer satisfaction and further sales. Barcode solutions result in better warehouse organization as the items can easily be traced and accounted for. A barcode inventory system means that favourite items can be stocked and that stock can be reduced thereby reducing costs. Reduction in time spent on data retrieval for annual inventories results in reduced operating costs.


2. Improved warehouse efficiency


Barcoding solutions will exponentially improve the efficiency of your warehouse. Locating items is instantaneous allowing for the tracking of customer in demand items and market trends and obviating laborious and time wasting manual tracking. In the warehouse environment items can easily become lost or misplaced, barcode scanning systems assist pickers in accurately locating items in bins or on shelves and thereby cost savings in resultant missing or incorrect items in shipping.


3. Reduced inventory costs


Barcode scanning systems allow instantaneous access to inventory data on a real-time basis resulting in reduced inventory levels and reduction in company costs such as interest, labour for handling excess inventory, and facility overhead.


4. Reduced labour costs


A more obvious benefit of implementing a barcode inventory system and one which can quickly pay for itself.


5. Improved security


A major benefit of employing barcode technology in the warehouse setting is that of inventory protection. Lost or stolen items can cost more than the value of the item itself in terms of time wasted in tracing the item and incomplete shipping orders resulting in lack of customer satisfaction/repeat business, a tarnished reputation - not to mention revenue. Barcode solutions immediately improve the traceability and security of your inventory.


6. Better managerial decision making


An automated data collection system including barcode technology not only speeds up data retrieval but collects and collates information that would be almost impossible to collect in other ways, allowing managers to make better informed decisions on the direction of the company and increasing its competitive edge.


7. Error elimination


Barcode systems take the drudge out of manual data capture are fast and accurate. Keyboard data entry creates an average of one error in every 300 keystrokes whereas barcode data entry has an error rate of about 1 in 3 million. This can lead to shipment delays when employees have to search for items that may not be in stock or are misplaced. Additionally, data mistakes can cause unnecessary overspending when excess inventory is ordered.


8. Reduction in training time


The use of a barcode system in warehousing is easy to learn and can reduce employee training time. It takes only minutes to master a hand-held scanner for reading barcodes as opposed to learning from a written procedural manual.


9. Productivity management


Productivity measurement can drastically reduce your warehousing labour costs by as much as 20%. In a well managed system, problems can be identified and isolated as they appear and steps taken to solve them. Barcode data capture of work activities, date and time stamped, allows for the tracking of employee performance. This data leads to improved productivity measurement, reporting and scheduling of warehouse activities.


10. Risk management


Incorporating barcoding improves the accuracy of inventory records and traceability of products from the raw materials to each batch of finished product. In the event of a recall or food safety issue, the use of barcodes can significantly reduce the administrative load.


These are but a few examples of the benefits of employing critical barcoding/scanning technology in warehousing operations.


Our barcodes work internationally. Should you require barcodes for your product, please visit our Buy page www.barcodeireland.ie/buy, or contact us on info@barcodeireland.ie or through the contact form on our website www.barcodeireland.ie/contact and let Barcode Ireland help your business.


Sources:

https://www.ukessays.com/essays/information-technology/the-role-of-barcode-in-warehouse-information-technology-essay.php

https://keap.com/business-success-blog/sales/sales-process/barcode-scanning-for-inventory-management

https://www.fcbco.com/blog/barcode-use-reduce-warehouse-costs

https://www.unleashedsoftware.com/blog/use-barcodes-grow-small-business


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