Benefits of barcode integration in the supply chain.
Updated: Nov 6, 2020
Simplifying supply chain productivity through barcodes.
“If you think of standardization as the best you know today, but which is to be improved tomorrow, you will get somewhere.” Henry Ford.
Barcodes in business act as a standardised method of identifying the same item across the increasingly complex modern supply chain.
The vital role the barcode plays in Auto-ID (Automatic identification) and data capture technology, and its significance in the supply chain cannot be overestimated.
Barcodes are an optical machine readable representation of data which denotes something about the package or product. They have evolved from 1D, to 2D, to QR (Quick Response) codes, allowing for the encoding of large strips of data to identify a particular product.
This data enables the identification and monitoring of raw materials, components, and finished products at any point in the supply chain.
Grant Wickes, Vice-President of Marketing at Wasp Barcode Technologies said, “The growing awareness of 2D [barcodes], with its ability to store more information, will help drive overall use of barcode systems. Both 1D and 2D barcodes will continue to provide an efficient and error-reducing way to help business,”
This Auto-id and data capture method of identifying objects collecting data from them and uploading to a centralised computer has become indispensable in the supply chain and moreover, a strategic imperative directly impacting companies bottom lines.
Modern supply chains are complex behemoths, with a myriad of interconnected businesses, often spanning the globe. The many links in the supply chain, from manufacturing to warehousing and transportation has obvious potential for vulnerability. No link in the supply chain is unimportant.
As celebrated author, philosopher and business leader Eliyahu M. Goldratt put it, "I say an hour lost at a bottleneck is an hour out of the entire system. I say an hour saved at a non-bottleneck is worthless. Bottlenecks govern both throughput and inventory."
Supply chain management (SCM) is about the smooth flow of goods, data, and finances related to a product or service, from procurement of raw materials, to the delivery of the product at its final destination - the consumer. It serves to maximise customer value and competitive business advantage. SCM therefore, is a conscious effort by companies to run their supply chains efficiently and effectively.
It's about optimisation.
The data contained in the barcode allows supply chain managers to know what is contained in a package, where in the supply chain it’s located and its destination, accurately and in realtime. Realtime information is critical in the supply chain presenting operational benefits to business such as:
A real reflection of current inventory
A more accurate inventory system resulting in more precise estimates in delivery times
Visibility of accurate inventory costs
Transparency is an essential element in the supply chain, especially in regulatory compliance in the food and beverage industries. Barcoding enables product traceability from origin to distribution. This visibility offers companies increased opportunities to respond to recalls and safety issues with immediacy and efficiency.
Operational improvement and cost savings are amongst the top benefits to businesses adopting barcoding systems. Accurate data meeting the requirements of customers and regulatory compliance.
Barcoding is a proven, cost-effective tool for companies to stay competitive in today’s increasingly complex supply chains. Companies leveraging barcoding systems will enhance customer satisfaction and efficiency in the supply chain, ultimately reflecting in their bottom line.
Our barcodes work internationally. Should you require barcodes for your products, please visit our Buy page www.barcodeireland.ie/buy, or contact us on firstname.lastname@example.org or through the contact form on our website www.barcodeireland.ie/contact and let Barcode Ireland help your business.