Nowadays, trying to track a large inventory of products manually is unnecessarily wasteful. Barcodes, originally pioneered by grocery stores (we’re all familiar with the barcode scanner at the checkout line), are being used in warehouses everywhere to better track and better understand their inventories.
How does barcoding help you better track your inventory?
Barcoding promotes better tracking because it automates inventory count maintenance. Every time an item is removed from the shelf to fulfill an order, it gets scanned and the appropriate count is deducted from the Inventory Management System automatically. When warehouse employees receive a new product, they input it into the system, print a barcode. Then, when the same product is reordered, it’s only a matter of attaching a barcode and scanning in the quantity received. The system will also be able to tell automatically when an inventory count is low and trigger a reorder alert automatically.
How does barcoding help you better understand your inventory?
Successful inventory tracking allows for inventory optimization. First you have to know the situation today, then you can start moving towards a goal. With inventory tracking on auto-pilot, you can start looking at which products sellout fastest and which sit on the shelves. Tracking products well will allow you to immediately see the effect of advertising programs – i.e. we’ve advertised this product heavily over the last three months, now lets see how it flew off the shelves compared to the previous three months.