How Barcode Label Tracking Simplifies Supply Chain Management

September 4, 2019

Inventory tracking has long been a major issue for all types of distribution businesses. Once, there were only manual processes for this purpose, but today, thanks to the use of barcode labels and computer software, tracking is an automated process. As long as the workers scan the barcodes at the appropriate times along the supply chain, the computer keeps track of what goods are coming in, in stock and going out the door. We discuss how barcode label tracking simplifies supply chain management in further detail in the following.

Barcode Labels Clearly Identify All Goods

One of the primary purposes of barcode labels is to clearly identify each product that your distribution centre sells to your clients. The labels can include the product name, quantity, warehouse location and other facts through numeric representation, depending upon your software and needs. Most barcode software provides a selection of templates to help you create the labels easily.

Tracking is Simple Using the Barcode Numbers

After your goods have their appropriate barcode labels, tracking is not that complicated. Your employees simply scan the products with a special barcode scanner during receiving them on the loading dock, taking inventory or as part of the order picking and shipping processes. The scanner sends the product information to the computer software for inventory counts and other related details. At all times, you will know the incoming, present and outgoing stock. Also, you will learn which goods sell quickly and which ones sell slowly.

Prevents Data Entry Mistakes

Since the scanner accurately scans that barcode numbers into the computer for you, the barcode label tracking prevents the data entry errors that occur with manual input methods.

Increases Inventory Accuracy

Manual inventory is full of errors, regardless of how careful companies are at taking it. It is just normal for people to miscount or write down the wrong numbers at times. In comparison, inventory taken using barcodes and scanners is highly accurate and free from human error.

Improves Stock Levels

Another benefit of barcode label tracking is that it helps you improve your stock levels. You can quit over ordering on the slow movers and understand which products you need a steady supply of all during the year. Also, you can better prepare for peak selling periods if your business has seasonal highs and lows.

For further details about how barcode label tracking simplifies supply chain management, contact our company, Challenge Packaging and Warehousing Solutions. We specialise in a wide array of warehouse and packaging services on an outsourced basis. Our goal is to help you handle your distribution tasks efficiently and effectively when you require outside assistance.

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Telephone: (03) 83609736
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