Bar-codes: A Look Into How They Cut Costs and Save Time

bar codes

Unfortunately, far too many companies rely upon a haphazard approach to managing their supply chain, their inventory and their shipments of finished goods. Typically, these companies rely upon redundant paper processes, excel sheets and spreadsheets, ones that aren’t live and aren’t updated in real-time. Mistakes abound and costs invariably increase. However, there is a solution and it includes bar-coding. So, what are some of the benefits of using bar-codes?

Reducing Manufacturing Costs

It’s not just about the finished product. Instead, it’s about using bar codes throughout the process. If your company manufactures product, then bar coding all of your raw materials, work-in-process, and partially-finished inventory, helps you to better schedule production, while also giving you an insider’s view into your manufacturing cycle times.

Improved Product Trace-ability

Product trace-ability is critical in today’s markets. It simplifies how your company ships, receives, invoices and tracks shipments. It reduces costs, eliminates defects and helps you trace issues back to their source. Bar coding will allow you to answer those time-critical customer questions about what went wrong and why. You’ll have immediate answers and be able to plan accordingly.

Faster Deliveries

Managing shipments of finished goods is a much simpler process when those products have bar codes. You’re able to quickly divert shipments, provide real-time delivery information and immediately consolidate shipments and inventory the moment products are delivered and received. This reduces delivery costs and improves customer relationships. In the end, customers want to know you’re on the ball. Today’s mobile handheld computers can track shipments via bar codes and provide you and your customers with instant updates.

Reduced Inventory Costs

There is always the concern of not buying enough, or worse, buying too much. Managing a supply chain is a daunting task in today’s economy. However, bar coding inventory simplifies how you order, receive, inspect and store inventory. Your pick and place orders will become a much simpler process and you’ll encounter less overstock situations and fewer inventory shortages.

Improved Vendor Management

Your purchasing department will have better inventory tracking through bar coding. This will allow them to negotiate lower prices and better delivery terms. Bar coding inventory is a more accurate form of inventory management, one where mistakes are less impactful and much easier to resolve. Today’s markets are time-sensitive. They require the ability to adjust at a moment’s notice. When your entire inventory is bar coded, your purchasing department can easily reconcile historical usage. This might just allow you to reduce your vendor base and use vendor consolidation to reduce costs even further.

Bar coding isn’t just a “nice-to-have”. In fact, in many ways, it’s a necessity given the demands of today’s markets. Take the time to investigate how bar coding all your inventory can help your company save money and improve service levels.