Importance of Barcode Inventory System for Small Business

Any business, whether small or big, needs smart management. Barcode inventory system for small businesses improves your business accuracy and efficiency. Barcodes have become an integral part of managing your inventory. It's a digital method of tracking your inventory smartly and easily. By just scanning the level, whether custom prints or Excel, you can easily reduce human errors.

When you set up a reliable barcode inventory system for a small business, it's easy to manage everything without any IT staff. 

In this blog, we will learn how important a barcode inventory system is and its total functions. 

So let's start fresh. 

What Is Barcode Inventory System

Barcode = Unique, a machine-readable pattern of parallel lines and patterns 

Indeed, keeping track of inventory efficiently is more important than ever. Let's learn a little about the advanced barcode inventory system. It's a method that can help easy to track any inventory item easily just by scanning the code. This technology brings benefits not only to the e-commerce platform but also to all other sectors. This advanced technology makes things easier and easier to track. There are some essential components in a barcode inventory system, including:

• Barcode labels 
• Barcode scanner 
• Inventory management software 

By integrating this into your e-commerce shopping cart software, you will save time and boost the total efficiency of your e-commerce and sales business. 

Whether you’re tracking raw materials, finished goods, or anything in between, the barcode Inventory control system is the game-changer for you. 

Different Types Of Barcodes - Quick Check

Basically there are two types of barcode available right now. One is one-dimensional (1D), and the other is two-dimensional (2D).

If we define a 1D barcode, then it will be known as a linear barcode. It's a combination of a series of vertical lines. There is a space between each line. The space indicates the product code of each product. 1D barcode is basically used in retail stores or for ERP business purposes. 

Some examples of 1D barcode :

• CODABAR
• CODE 11 Barcode
• CODE 128 Barcode
• CODE 2 OF 5 – Interleaved
• CODE 39 Barcode
• Code 93 Barcode
• EAN 13 Barcode
• ISBN-13 & more 

A 2D barcode or two-dimensional barcode working process is complex than 1D.  It stores information vertically or horizontally. It's more advanced than a 1D barcode pattern. It easily stores text, URLs, images, and even multimedia. It's also more capable of storing data. If you need something more complex, such as code or enhanced security, then a 2D barcode is the choice for any type of small or large business. Includes: Retail, healthcare, marketing, food, and logistics.

Some examples of 2D barcode :

• e QR codes
• Data Matrix
• PDF417 
• Aztec 
• Maxicode

Is it really important to use a barcode inventory system for small business? Let's check and find out. 

Why Use A Barcode Inventory System for Small Business

There are several reasons to use barcodes in a small business's daily inventory. Without a doubt, barcodes improve daily operations and boost the bottom line of businesses. It is a fact to learn that Inventory errors cost businesses over $1.75 trillion globally. Using barcode technology brings benefits for small businesses. Let's check some of those and enlighten us. 

Remove Manual Inventory Tracking Errors

Inventory is an important section for any business. because you can track your assets or products also store them. So there is are huge responsibility to maintain it accurately. But we are human, so it's true that we make mistakes. On the other hand, some businesses sometimes many business face huge falls because of not properly maintaining inventory. 

Using a barcode instead can change all of those problems at once. It's more accurate than manual tracking of inventory assets. Barcode technology made the inventory more organised and easier to track. So staff manage more time to do other important tasks. 

Cost Minimization

In small businesses, minimising any usual or hidden costs is necessary. Your business is small and you try to gain a small profit, so frist things frist is cost minimisation. Barcode inventory management software can do that. Manually tracking all those staff in your warehouse is time-consuming, and one incorrect count costs in different ways that cannot be imagined. 

On the other hand, just implement a barcode technology and solve all those issues. It also reduces the employee cost and unnecessary hidden costs. 

Accuracy In Order Throughput 

Automating data capture and reducing manual entry, the barcode scanner system software speeds up the inventory management process. Order cycling time and order shipping on the same day is quite difficult. But with the help of the barcode scanner, it's easy and efficient. Without any doubt, it has increased the total day working process from store to deployment. If you are new to e-commerce or the ERP business, then barcode technology is the right choice. 

Process Management 

Barcode management in your inventory improves the overall process of your business. It has better control over how much inventory is lost due to shrinkage. Barcode is one method that accountability and openness in the warehouse.

Implementing a barcode inventory management system easily look up any item and see how many you have on hand. Not only how many orders there are, and when they will be delivered. So all the inventory processes are organised and simple, and easy to track. You can easily automate this, including:

• PO records 
• Cycle count and physical inventory counts 
• Pick tickets 
• Employee identifications & more 

Organised Report & Analytics 

Report and analytics is another primary things to consider. Without proper reports and analytics, it can cause business loss, and in the long run, the e-commerce business will be doomed. When you implement a barcode system in your inventory, then all the assets will be organizely tracked. When all assets are properly tracked, reports and analytics are more accurate than those generated manually. In this way, the business's overall progress will improve day by day. 

Customer Satisfactions 

In any business, customer satisfaction is the main concern. Customer reference can make a huge difference in any business. Whether big or small, a customer's positive review drives more customers to your website and earns a positive reputation. Barcode inventory system supports faster order processing. In that case, faster order management improves the overall process and delivers the product in less time. 

Key Features of Barcode Scanning System For Inventory

If you really want to implement a true barcode scanning system for inventory, then some features need to be present in the system. We will discuss it here with details. It's your retail store, warehouse or any e-commerce business; the right feature makes the real difference in controlling inventory.

Properly Create - Scan - Print

It's an important function in any QR code scanning system. With the proper software and tools, you can generate thousands of barcodes in a movement and scan and print them. This eliminates manual entry, reduces human error, and speeds up inventory processing.

Real Time Inventory Update 

The real-time inventory update function can manage real-time asset updates for sales returns and stock. With this function, cycle counts are much easier and smoother. Just scan the barcode and update the current quantity of the product at once. After receiving any products, you can just scan the barcode and check if you received the right one or not. If the product does not match the exact code, then you can recheck or return the product for the right one. It's that easy. 

Product Tracking Management 

Tracking with a barcode is getting easier. You can easily track your products with your phone. Track each item’s details, including SKU, location, quantity, and movement history. When you can track which products sell more and which ones are slow. So you can know when to reorder which products and which not to order the products. So, as a result, it will help to gain some revenue in your small business or any business. 

Low Stock And Reorder Alerts 

With this function, you can easily get notified when your stock levels are in red alert. When it drops to the minimum level, you will also be notified.

This feature is really essential for any barcode inventory system for small business. As a result, it prevents emergency stockouts and remains fully stocked. 

Proper Integration Management 

Another important function for any barcode inventory system is proper integration. Proper integration with the sales ERP software, e-commerce platform, and accounting software ensures proper syncing with the inventory data source. Barcode inventory automation keeps invoices and other documents properly in order.

Mobile Device Support 

Mobile device support is another essential function for a barcode inventory system for a small business. With that, you have the advantage of being able to manage your inventory and make quick, informed decisions with a simple scan. Includes: stock checks, inventory putaway and picking accuracy ensure smooth tracking and maximum ROI. 

How to Implement A Barcode Scanning System for Inventory

Implementing a barcode inventory management system for your business can be achieved by following the steps below:

Get An Overview Of Your Inventory 

Yes! Before implementing any tools in your existing business or a new small business, frist thing frist is to know your inventory. You need to evaluate your specific needs. List the products you have in your inventory, or document some additional information if needed. But apart from that, you need to follow some criteria like :

• Inventory size or level 
• Total cost 
• Which type of barcode is suitable for your business 

Choose The Right Barcode (1D/2D)

One of the main things you need to fix is choosing the right barcode system for your inventory. If your business is small or just starting stage then 1D is the perfect choice. On the other hand, if you need more security and your business is kinda complex, then go for a 2D barcode system. On the other hand, if you already have an inventory management software, then integrate it with barcode technology. 

Generate Barcodes

Once you choose your right barcode system, then it's time to generate barcodes according to your product lists. Remember to put this information, like product details, SKU, and location. Then print and label it on your products. label size, material, and placement are important to maintain because if the label size is too small, then the barcode scanner can not be able to read the code. 

Train Your Staff

Another thing to maintain in barcode inventory system for small business is to train your employees how to use it. Provide training on scanning items, updating inventory, and troubleshooting basic issues. 

Maintenance Program 

Barcode solution for e-commerce needs regular maintenance. maintenance like monitoring barcode scanners, properly labelling inventory, and training staff on best practices. Regular maintenance helps to keep your inventory accurate. 

Endnote

Implementing a barcode inventory system for small businesses is a smart solution. It's time-efficient and reduces the cost of your business. With a smart barcode system in your hand, you can get accurate, real-time data, managing your supplier relationships, stock levels. All of your small business chaos is maintained effectively without any hidden costs. For small and medium-sized businesses, it’s a smart investment with big returns.

FAQs

What Types Of Businesses Can Benefit From A Barcode Inventory System?

Almost any type of business can benefit from these businesses. But if you are trying to start any small business and are trying to find a cost-effective solution for your inventory, then implementing a barcode is the right choice. 

What Kind Of Tools Do I Need To Get Started?

You will need barcode inventory software, a barcode printer, scanner. Some businesses use mobile devices with a scanning app. 

What Is The Best Barcode Inventory System For Small businesses?

It really depends on your business types, business size, cost & more. There is a lot of software available in the market, but you need to choose the software according to your requirements. 

Can I track sales and returns with this system?

Yes. You can. Many barcode inventory tools also track sales, returns, and even customer data when integrated with POS software.

Can I Create My Own Barcodes?

Yes. You can generate your own generate and print barcodes in-house without needing to buy pre-made ones.

Is the Barcode Scanner System For Small Business Expensive?

Not at all. There are affordable options available for small businesses. The low cost inventory by efficiency and error reduction it brings.