{"id":468,"date":"2021-04-20T06:56:25","date_gmt":"2021-04-20T06:56:25","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=468"},"modified":"2022-12-16T12:01:42","modified_gmt":"2022-12-16T12:01:42","slug":"barcode-system-manufacturing","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/barcode-system-manufacturing\/","title":{"rendered":"Barcode Inventory System \u2013 Why and How to Implement Barcodes?"},"content":{"rendered":"\n<p>Implementing a barcode inventory system is one of the best ways of increasing the efficiency of your stock management process. Affordable and easy to implement, barcodes can dramatically save time, reduce worker overhead, and eliminate data-entry errors for both manufacturing and distribution businesses. In this post, we take a look at barcode systems and how to implement them.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"562\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-1024x562.jpg\" alt=\"barcode-inventory-system\" class=\"wp-image-7817\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-1024x562.jpg 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-300x165.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-768x421.jpg 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system.jpg 1502w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<!--more-->\n\n\n\n<p><em>You can also listen to this article:<\/em><\/p>\n\n\n\n<iframe loading=\"lazy\" title=\"Barcode Inventory System \u2013 Why and How to Implement Barcodes?\" allowtransparency=\"true\" height=\"150\" width=\"100%\" style=\"border: none; min-width: min(100%, 430px);\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=xr7px-103e51b-pb&amp;from=pb6admin&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Arial&amp;skin=1&amp;btn-skin=3\"><\/iframe>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/barcode-system-manufacturing\/#What_is_a_barcode\" >What is a barcode?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/barcode-system-manufacturing\/#What_is_a_barcode_inventory_system\" >What is a barcode inventory system?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/barcode-system-manufacturing\/#How_to_implement_a_barcode_inventory_system\" >How to implement a barcode inventory system?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/barcode-system-manufacturing\/#Key_takeaways\" >Key takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_barcode\"><\/span>What is a barcode?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A barcode is a simple representation of data in a machine-readable form that consists of visual patterns and sometimes also numbers. When barcodes get scanned, the code they represent is fed into a computer system that associates it with a specific product. Useful both for point of sales as well as for raw materials, Work-In-Process, or finished goods inventories, barcodes have become an essential tool in commerce.<\/p>\n\n\n\n<p>Barcodes were created by Norman Joseph Woodland and Bernard Silver who were granted a patent for the invention in 1952. They initially based their idea on Morse code, extending it into a visual representation of thinner and thicker bars. The invention took almost 20 years to gain popularity. Today though, finding a product without one is an increasingly rare occasion.<\/p>\n\n\n\n<p>There are many different barcode formats, but a larger distinction exists between two types:<\/p>\n\n\n\n<p><strong>Linear barcodes or 1D barcodes<\/strong> are the traditional variant. These consist of parallel black and white lines and are used to convey a small amount of information used for inventory management, shipping, tracking, and check-outs. Linear barcodes often also include numbers or letters.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"267\" height=\"189\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2019\/09\/Barcode.png\" alt=\"1d-barcode-linear-barcode\" class=\"wp-image-3703\"\/><figcaption><strong>The European Article Number (EAN) code is one of the more widely used linear barcodes.<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p><strong>2D barcodes<\/strong> are the more modern variant. These are usually squares or rectangles that contain black and white patterns but they can also be colored. Probably the most well-known 2D barcode is the QR code. 2D barcodes can store larger amounts of information while using less space. They are also less susceptible to being unreadable due to damage. Another key improvement over their linear predecessors is that 2D barcodes do not require a database. Instead, they provide instant information about the item thanks to their larger data storing capacity.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2017\/02\/qr-code.gif\" alt=\"2d-barcode-qr-code\" class=\"wp-image-667\" width=\"246\" height=\"246\"\/><figcaption><strong>The Quick Reaction (QR) Code is one of the most well-known formats of 2D barcodes.<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_barcode_inventory_system\"><\/span>What is a barcode inventory system?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A barcode inventory system is dedicated or integrated software that assigns barcodes to some or all parts of a company&#8217;s inventory and automatically synchronizes them with the larger <a href=\"https:\/\/www.mrpeasy.com\/inventory-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory management software<\/a> or MRP. Let us take a look at some of the main reasons to implement a barcode system in inventories big and small.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Expedite inventory processes<\/h3>\n\n\n\n<p>Entering data manually can take forever. Using a quick barcode scan only takes a second. That means reception, picking, and dispatching will take much less time. Barcodes also make it easier to track your inventory as well as your equipment, reducing search time as a consequence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Eliminate human error<\/h3>\n\n\n\n<p>Manual data entry comes with an increased risk of making errors. Using a barcode scanner is very easy to master and largely eliminates the risk of data entry errors. There is no way for a barcode scanner to erroneously read the data provided on the label.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Instantly analyze data<\/h3>\n\n\n\n<p>The information fed into your data management system allows you to analyze the data in seconds, providing you with a consistent overview of your inventory movements and statistics, and with accurate sales forecasts. This ensures that up-to-date information is always available when it is time to make important decisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ensure accurate bookkeeping<\/h3>\n\n\n\n<p>Keeping meticulous records of your inventory movements, both incoming and outgoing, is a great help to your accountant. Barcoding and scanning each item when it arrives into inventory and when it is consumed or dispatched allows you to have a real-time overview of your cash flow and the financial health of your business.<\/p>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Simplify your inventory management with MRPeasy<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_implement_a_barcode_inventory_system\"><\/span>How to implement a barcode inventory system?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Using a barcode inventory system seems like a foolproof way\nto improve your warehouse organization. But implementing it takes a little bit\nof concentrated effort. Here are the basic steps to do it:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Define your SKUs<\/h3>\n\n\n\n<p>One of the first things you should do when starting to deal with inventory would be to make distinct codes for each of your inventory items. These are called Stock Keeping Unit codes and they allow you to better organize, track, and analyze your stock. For example, if you have identical materials coming in from different suppliers, having an SKU system ensures that the materials are all accounted for as one.<\/p>\n\n\n\n<p>Ideally, an SKU code is not a random string of letters and\nnumbers but conveys information about the items, i.e. color, size, weight,\nmaterial, etc.<\/p>\n\n\n\n<p><em>Read more about <a href=\"https:\/\/www.mrpeasy.com\/blog\/stock-keeping-unit-sku-best-practices-for-inventory-classification\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Stock Keeping Unit (SKU) \u2013 Best Practices for Inventory Classification<\/a>.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Choose a software<\/h3>\n\n\n\n<p>When choosing a barcode inventory system software, it is recommended to implement one that has additional perks to barcoding. There are many different solutions that help you create barcodes and labels, and to read them, but sooner or later you are going to need <a rel=\"noreferrer noopener\" aria-label=\"Inventory Management Software (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/inventory-management-software\/\" target=\"_blank\">Inventory Management Software<\/a> or <a rel=\"noreferrer noopener\" aria-label=\"Manufacturing Resource Planning software (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/mrp-system\/\" target=\"_blank\">Manufacturing Resource Planning software<\/a>. In these perpetual inventory systems, barcoding is just a small part of their overall functionalities which extend to production planning, inventory management, procurement, etc.<\/p>\n\n\n\n<p>Using an ERP system that links together data from across the business would be best, though, to ensure that the necessary information reaches the necessary parties as quickly as possible. That would, for example, allow the procurement department to know when an item in stock needs to be replenished, or the production floor to know if a supplier is late with a shipment.<\/p>\n\n\n\n<p><em>Read more about<\/em> <em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.mrpeasy.com\/blog\/perpetual-vs-periodic-inventory-system\/\" target=\"_blank\">Periodic vs. Perpetual Inventory System in Modern Manufacturing<\/a>.<\/em> <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Label everything<\/h3>\n\n\n\n<p>Next, you can use the SKU system and the barcoding software\nto create barcodes for your inventory items. Set up the SKUs in the software\nand then it should be able to automatically generate barcodes and barcode\nlabels for your inventory articles, stock lots, pieces of equipment, and\nstorage locations. Print them out and label everything that would allow for\nquicker scanning, shorter search time, and better tracking.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><a href=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-generator-1.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-generator-1-1024x526.png\" alt=\"barcode-inventory-system-generator-1\" class=\"wp-image-7826\" width=\"768\" height=\"395\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-generator-1-1024x526.png 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-generator-1-300x154.png 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-generator-1-768x395.png 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/04\/barcode-inventory-system-generator-1.png 1204w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/a><figcaption><strong>Some ERP systems allow you to automatically create barcodes for your inventory articles, and to print them.<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Train your employees<\/h3>\n\n\n\n<p>Now it is time to instruct your employees about the new barcode inventory system. Luckily, barcode systems are very easy to grasp. Scanning a barcode usually <a href=\"https:\/\/www.mrpeasy.com\/resources\/user-manual\/settings\/system\/enterprise-functions\/barcodes\/#actions\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">triggers a specific action<\/a> depending on the type of barcode and on which page the scanner software is at the moment. Make sure to thoroughly understand the support materials of the system yourself before instructing your employees. The main thing to ingrain in your team is to use the system consistently, to record every inventory movement. Without continuous inputs, the system is useless.<\/p>\n\n\n\n<p>Using a barcode scanner is very easy. Some solutions\n(MRPeasy, for example) also allow for barcode scanning with a smartphone. This\nmeans there is actually no need for dedicated barcode scanners \u2013 everything can\nbe done via mobile devices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Update the system with each new item<\/h3>\n\n\n\n<p>Now, when the system is up and running, you should create a\nnew barcode for each new material, product, stock lot, piece of equipment, etc.\nthat comes into your inventory. Updating the system is necessary for it to\nproduce quality information about your stock levels and your business as a\nwhole.<\/p>\n\n\n\n<p><em>Read more in <a href=\"https:\/\/www.mrpeasy.com\/blog\/warehouse-organization\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Warehouse Organization: How to Set Up a Smooth-Running Warehouse<\/a>.<\/em><\/p>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Take full control of your inventory processes<\/div>\n        <div class=\"banner-v1__desc\">MRPeasy is affordable, powerful, and easy to implement.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_takeaways\"><\/span>Key takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Implementing a barcode inventory system is one\nof the easiest ways to ensure better traceability and efficiency.<\/li><li>There are two large groups of barcodes: linear\nor 1D barcodes, and 2D barcodes. 1D barcodes are more well-known and have been\nwidely used for 50 years. 2D barcodes are rising in popularity, though, thanks\nto their larger capacity for data storage and more foolproof use. QR-codes are\nan example of 2D barcodes.<\/li><li>Implementing a barcode inventory system is never\na bad idea. It is especially wise to do it as early as possible to ensure a\nsmooth transition to the system.<\/li><li>Barcodes help eliminate a large portion of\nmanual data entry, human error, and search time. The consistent, high-quality inputs\nprovided by the barcode system allow you to quickly analyze large amounts of\ndata and have a real-time overview of what is happening in your inventory and\nyour business as a whole.<\/li><li>The most important thing when implementing a barcode\ninventory system is to be consistent. With no consistent inputs, the system is\nessentially useless. With continuous inputs, however, it has the power to\ntransform your inventory processes.<\/li><\/ul>\n\n\n\n<p><em>You may also like: <a href=\"https:\/\/www.mrpeasy.com\/blog\/traceability\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"How to Achieve Traceability in Manufacturing? (opens in a new tab)\">How to Achieve Traceability in Manufacturing?<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Implementing a barcode inventory system is one of the best ways of increasing the efficiency of your stock management process. Affordable and easy to implement, barcodes can dramatically save time, reduce worker overhead, and eliminate data-entry errors for both manufacturing and distribution businesses. In this post, we take a look at barcode systems and how [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":7817,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[96,94],"tags":[12,612,610,611,615,20,616,66,284,614],"class_list":["post-468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory","category-tips","tag-barcode","tag-barcode-inventory","tag-barcode-inventory-system","tag-barcode-system","tag-barcode-system-in-manufacturing","tag-barcodes","tag-manufacturing-barcodes","tag-mrpeasy","tag-perpetual-inventory","tag-perpetual-inventory-system"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Barcode Inventory System \u2013 Why and How to Implement Barcodes?<\/title>\n<meta name=\"description\" content=\"Implementing a barcode inventory system is one of the best ways to improve the efficiency of your inventory processes. 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