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While supply chain management may seem simple on paper, the practical part often reveals challenges related to manual data entry and inefficiencies. Learn how adopting barcode technology can help streamline supply chain management by reducing errors and enhancing inventory accuracy.
Key takeaways:
- Any business seeking a competitive advantage must streamline its inventory and supply chain management processes.
- Barcode technology eliminates manual data entry challenges, such as inaccurate data and analysis.
- Benefits of barcode technology include reduced errors, supply chain traceability, cross-functional integration, and improved order fulfillment.
Effective supply chain management (SCM) is one of the critical pillars of a successful business. It determines the efficiency of your supply chain, which directly impacts your company’s profitability and customer satisfaction.
Over the years, businesses have devised clever tactics to streamline inventory management, but each approach has one common denominator — the need to keep track of every item on hand.
One of the most effective ways to do this is by leveraging barcode technology. Barcode scanners eliminate the chaos associated with manually logging inventory data, leading to improved inventory accuracy and a more streamlined supply chain management process.
Discover how adopting barcode technology reduces errors, speeds up operations, and improves inventory accuracy, leading to cost savings.
What is barcode technology?
Barcodes are more than just lines and spaces printed on product labels — they represent a revolutionary trend that even today has the potential to reshape global supply chains.
At a basic level, barcodes combine vertical black lines with varying lengths and heights separated by white spaces. These elements identify specific products and any pertinent information linked to each product.
Businesses use barcode scanners connected to computers to decode data for easy access. In a way, barcodes speak a universal language, transcending borders and time zones. This ensures that everyone in the supply chain can seamlessly access the necessary information, simplifying and enhancing the efficiency of supply chain management.
What are some of the biggest problems with inventory management?
Some issues may occur in your inventory management processes despite your best wishes. How you handle them may mean the difference between streamlined business operations and total operational failure.
Some of the biggest pain points in inventory management include:
Inaccurate data and analysis
Data is the lifeblood of any organization aiming to stay competitive. Accurate data is essential for effective demand forecasting, production planning, and inventory management. However, manually logging inventory data is error-prone, and these mistakes often slip through the cracks, leading to inaccurate information.
One of the last things you want to deal with is relying on flawed data for analysis. This can produce misleading insights, resulting in poor inventory management and stock shortages.
Improper inventory storage
Effective inventory management involves maintaining proper stock levels and ensuring that any perishable inventory in storage doesn’t exceed its sell-by date.
There’s also the issue of ordering errors. Any errors made when ordering a re-stock could lead to overstocking and understocking certain products. The former often results in storage inefficiencies, leaving businesses with more inventory than they have space to store
Capital tied up in unused inventory
If you’re running a retail business, the chances are that you’re operating on thin profit margins. There’s also a chance that most of your working capital is tied up in inventory. However, this shouldn’t be a major problem if your inventory moves.
The problem arises when most inventory is tied to unused or slow-moving products. In such a scenario, the free capital your business can invest in future product development and inventory is significantly limited, leading to potential financial losses.
How can barcode technology streamline inventory and supply chain management?
Efficiency is critical in supply chain management. As you may have noticed, legacy inventory and supply chain management practices can’t keep up with today’s fast-paced world.
That's where barcode technology proves invaluable, enabling your business to unlock the following benefits when implemented effectively.
Automated data capture
One of the greatest benefits of barcode technology is its remarkable ability to automate data capture. By encoding information into a series of lines, businesses can rapidly identify products, assets, and shipments.
Even more impressive is that barcodes can hold other important information such as product details, expiration dates, and batch numbers, making tracking products throughout the supply chain easier.
Reduced errors
Manual data entry is flimsy at best. Anything from transposing digits to misreading handwritten labels could lead to costly mistakes in supply chain processes. Barcode technology eliminates such errors, thereby effectively minimizing these risks.
Supply chain traceability
Barcodes facilitate end-to-end traceability of all products across the supply chain. Each product has a unique barcode that acts as a digital passport, recording its journey through the supply chain.
This traceability enhances transparency, compliance, and quality control. It also makes it easier to identify inefficiencies in supply chain processes.
Efficient order fulfillment
According to the Elastic Path Survey, an estimated 38% of shoppers will abandon their order if the delivery takes longer than a week. Even more concerning is that failing to fulfill customer orders may mean losing a customer, which can be detrimental to businesses that rely on repeat customers.
Tracking orders in warehouses or distribution centers can be daunting, especially when done manually. Barcodes streamline the process by guiding workers to locate products quickly and easily. They also help employees assemble orders faster and more accurately, improving efficiency and boosting customer satisfaction.
Cross-functional integration
Barcode technology integrates seamlessly with enterprise solutions like customer relationship management (CRM) and enterprise resource planning (ERP) software, enhancing data flow and collaboration between various departments in the supply chain.
For instance, an automotive manufacturer leveraging barcode technology can use an ERP system to update production schedules automatically based on incoming parts. The sales department also has access to production data, leading to streamlined order fulfillment.
Streamline SCM processes with Unisol International
Effective supply chain management is the backbone of modern business. The era of relying on tedious, time-consuming, and error-prone manual data entry is long gone. With barcode technology, companies can streamline their entire supply chain while enjoying additional benefits like seamless integration with enterprise systems, enhancing efficiency and accuracy at every stage.
However, many organizations face challenges in selecting the right technology and integrating these systems into their existing operations — and that’s where Unisol International comes into play. We specialize in product distribution and turnkey deployments of IP solutions tailored to meet your operational needs.
Our extensive selection of barcode scanners is designed for any business and operational environment, ensuring you find the perfect fit. Contact us today if you’re ready to streamline SCM processes in your business.
