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Discover barcode technology’s benefits for inventory management and practical implementation tips.
Key takeaways:- Barcode technology was envisioned by Joe Woodland in 1949. However, the technology wasn’t viable until 1974.
- Today it has become ubiquitous, revolutionizing how suppliers, warehouses, and stores authenticate, track, and manage data.
- Benefits include real-time inventory tracking, reduced errors, and improved efficiency
Understanding barcode technology
Barcode technology uses scannable barcodes to automate and optimize stock purchasing, order fulfillment, visibility, and more. The barcodes are graphical representations of data consisting of numbers, whitespaces, dots, parallel lines, and other geometric patterns. Each is a unique identifier that encodes information such as a product’s name, price, or SKU (stock-keeping unit). Computers connected to scanners read these codes and retrieve the encoded data to help you manage inventory levels. This technology was born in 1949 when Joe Woodland, an inventor, was tasked with simplifying stocktaking and helping a local grocery store’s checkout queues move faster. Woodland’s solution was to code every product to eliminate the manual pricing and looking them up prices when tags were missing. However, and it wasn’t until the 1960s that the minicomputers needed became available. By 1974, the barcode technology was viable, and the first product was scanned—a pack of Juicy Fruit chewing gum. Barcodes have since evolved into an essential business tool, revolutionizing authentication, tracking, and managing data. There are two types of barcodes:- 1D (one-dimensional)/linear barcodes: These feature black parallel lines with symbols, letters, and numbers that represent a code to a product information database. Examples include EAN, UPC, and MSI Plessey barcodes.
- 2D (two-dimensional)/matrix barcodes: These contain both vertical and horizontal lines and can hold more characters than linear barcodes. They can also store more information, including website URLs, images, and quantities, and render it without any connection to a database. Examples include PDF417 and QR codes.
Benefits of barcode technology in inventory management
Managing your inventory using barcode technology lets you reap these benefits:- Real-time inventory tracking: You can track inventory movement and stock status in real-time and make timely decisions about stock replenishment to avoid over- and understocking.
- Reduced errors: Barcodes reduce human errors and ensure correct order fulfillment by providing consistent and accurate data capture, generating fewer returns and complaints and higher customer satisfaction.
- Improved efficiency: By automating data entry, employees complete tasks faster and increase overall efficiency and saving time that employees dedicate to other responsibilities.
- Data analysis and insights: Barcode technology provides information you can leverage for analysis and decisionmaking. Insights gained relate to product performance, demand patterns, and consumer behavior to streamline supply chain processes, identify popular products, optimize inventory levels, and enhance overall efficiency.
