The use of barcodes in inventory management is not new—it has been a standard practice for decades. The main question is how to set up a barcode inventory system.
Many rising businesses tend to switch from manual inventory management to a proper barcode system to better manage and track inventory. Therefore, we have compiled this comprehensive guide to help you effortlessly set up a complete barcode inventory system.
In this guide, you will learn:
- What is a Barcode Inventory System?
- How Does a Barcode Inventory System Work?
- 5 Benefits of a Barcode Inventory System
- How to Set Up a Barcode Inventory System?
What is a Barcode Inventory System?
A barcode inventory system is a complete toolkit that combines different hardware and software components to manage inventory using barcodes. It provides an easier and automated way to manage and monitor inventory levels.
With a simple barcode scan, the barcode inventory system can offer real-time visibility of the quantity and location of items in the warehouse. Moreover, it helps to quickly and autonomously update inventory.
The key components of a barcode inventory system are:
- Barcodes: Unique identifiers assigned to every inventory item.
- Barcode Printers: Devices to print barcode labels.
- Barcode Scanners: Devices to scan and read barcodes and send the encoded information to the linked system.
- Inventory Management Software: A software solution that processes collected data from the scanner and then provides real-time inventory visibility, updates inventory levels, tracks stock movement, and creates reports.
All the above hardware and software solutions make up a complete barcode inventory system.
How Does a Barcode Inventory System Work?
A barcode inventory system revolves around labeling items, scanning barcodes, and updating inventory records in real-time. The typical workflow of a barcode inventory system is as follows:
- Barcode Generation: Each item is assigned a unique barcode.
- Barcode Labelling: Barcodes are printed and pasted to the item.
- Barcode Scanning: As the item moves around the supply chain, the staff uses barcode scanners to read the barcode and encode the data.
- Data Transmission: The scanner directs the transmitted data to inventory management software and provides real-time information on the item’s quantity and other details.
- Inventory Management: The inventory management software allows the staff to update and monitor the stock levels.
Simply put, a barcode inventory system automates data-capturing and saves significant time from manual work.
5 Benefits of a Barcode Inventory System
A barcode inventory system offers a wide range of benefits, as follows:
1. Better Inventory Management
A barcode inventory system offers a digitalized way to manage inventory. With just a single scan, you can get complete item information in real-time and update your inventory.
2. Informed Business Decisions
You get real-time information on inventory levels, sales trends, and other insights. In fact, the inventory management software can even generate inventory-related reports. With these insights, you can make informed business decisions.
3. Minimize Risks and Losses
A barcode system reduces human errors caused due to manual data entry. The inventory levels are updated autonomously during restocks or sales. It also reduces the chances of theft due to improved tracking.
Read more: 6 Tips to Improve Inventory Accuracy by Over 90%
4. Fast Order Fulfillment
Barcodes expedite the order fulfillment process due to their scan-based approach. It becomes much faster to pick and pack orders and dispatch them at a faster pace.
5. Enhance Customer Satisfaction
Accurate inventory management and tracking reduce the chances of stockouts and ensure on-time order fulfillment. Customers also have a smooth shopping experience, which enhances their satisfaction and retention.
How to Set Up a Barcode Inventory System?
Now that we have cleared the importance of the barcode inventory system, let’s move on to the main part of this guide, i.e., how to set up a barcode inventory system.
We have divided the whole process into four steps. Read on and execute each step to configure your full-fledged inventory system:
Step 1. Prepare Inventory List and Generate Barcodes
Start with preparing the inventory list spreadsheet. You have to create a list that includes all your inventory items.
After creating the list, use any online barcode generator to create barcodes for each item. If you want your barcodes recognized globally, you must use GS1-registered barcodes. To do so, you have to go to the GS1 website and follow the instructions to register for a GS1 company prefix and assign numbers.
Step 2. Label the Items
Now, you have to label the items. For that, you need two components. First, you need software to create labels and set their dimensions. Secondly, you need a specialized printer, like a DYMO printer, Zebra printer, or others, to print those labels. You can choose the printer and software of your choice.
Step 3. Purchase a Scanner
Next, you have to purchase a scanner. It is available in different shapes and sizes. So, search and purchase the scanner(s) that best fits your needs. Alternatively, find a barcode inventory system that is compatible with phone devices.
Step 4. Choose an Inventory Software to Integrate Your Barcode System
Lastly, you need to choose an inventory software to complete the barcode inventory system. After purchasing the barcode scanner and label printer, you need inventory software to tie the barcode inventory system together.
Look for an inventory management software that offers the below set of features:
Real-time inventory tracking
Smooth stock updates
Compatibility with other barcode system components
Inventory alerts
Reporting
You can choose an inventory software that offers all the features and helps to set up a full-fledged barcode inventory system.
But wait! What if we told you that you don’t need to purchase a separate barcode scanner, label generator, and inventory software? This is where the C2W Inventory comes in.
C2W Inventory is designed to be an all-in-one, complete barcode inventory system that offers everything in a unified cloud-based software solution. With C2W Inventory, we can assist you in building your product list from scratch. Alternatively, if you already have an existing spreadsheet, you can simply batch import it into our system.
Real-Time Visibility:
Offers instant insights into inventory levels and movements.
Barcode Scanning System:
Delivers accurate, real-time data on item location and quantity in your store or warehouse.
Multi-Warehouse Management:
Simplifies operations across multiple locations.
Reorder Points:
Allows you to set minimum stock levels to prevent running out.
Bill of Materials (BOM):
Tracks all the materials you need for your products, ensuring that you always have the right quantities on hand.
Manufacturing Management:
Manages your production efficiently from start to finish, improving your output and meeting delivery times.
Smooth Stock Adjustments:
Makes changes to stock levels during order picking, PO receiving, and stock transfer with a simple scan.
Insightful Reporting:
Generates inventory reports to learn about top-selling items, sales trends, and more.
Being a cloud-based tool, C2W Inventory is your on-the-go tool to manage inventory from anywhere. So, what are you thinking?
Build up a solid barcode inventory system with C2W Inventory and take control of your stock with automation and operational efficiency.
Conclusion
It won’t be wrong if we say that a barcode inventory system is essential today. Digitalized barcode-based inventory management is far more efficient and beneficial than traditional manual ways. The best thing is that it isn’t complicated to integrate a barcode system. All it requires is a dedication, proper plan, and the right inventory management software like C2W Inventory to have a fully functional barcode inventory system.
