Many companies invest in barcoding solutions for the sole purpose of inventory management. Inventory takes up a large portion of a company’s product costs (about 90%), and poor inventory management can have a direct hit on a company’s bottom-line. Overstocks and understocks can be detrimental to a business, leading to unsatisfactory customer experiences and – eventually – lost customers. With a sufficient enterprise resource planning (ERP) system that supports barcoding technology, you can transform not only your warehouse but your entire business with benefits such as:
- Improved Data Accuracy. Barcoding automates the data entry process and virtually eliminates human errors in the data entry process. When you integrate barcode technology with your ERP software (whether that be Sage 100 ERP or Infor VISUAL Manufacturing ERP software), you can be certain that your data is always accurate. This can help you create more effective reports and give your executives confidence in the area of decision-making.
- Reduced Training Time. Barcode scanners are not complicated to use and can be integrated fairly quickly. In fact, many of today’s scanners have similar features as smartphones to make it easy for users to master the technology. Your employees are already aware of your company’s inventory processes and procedures, so implementing barcoding technology will only require training on the scanners. This will lead to a reduction in employee training time and costs, allowing you to focus on improving your inventory processes rather than wasting valuable time (and dollars) in the training process.
- Improved Efficiency. Considering the fact that barcoding provides a faster and more accurate way for capturing data, companies who implement barcode scanners see a reduction in the time spent on the data entry process and follow-up error resolution. Barcoding streamlines inventory management tasks, helping you to improve your overall efficiency in the warehouse. This allows your staff to focus on more critical tasks while continuing to respond to the needs of your customers.
- Improved Decision-Making. Having access to real-time information is life-altering for any business. Barcoding allows companies to capture information effortlessly and pass it on to their ERP system where the data can be viewed in real-time through a variety of reports and graphs. This allows managers and executives to obtain the information they need to make quick and effective decisions for the business.
- Improved Visibility. When used correctly, barcoding can help you track the progression of inventory throughout your warehouse from the moment it hits the receiving floor. When integrated with your company’s ERP software, your managers have instant visibility into your warehouse. Improved visibility has the potential to impact many areas of your business, including customer service. When you know exactly where your products are located in the inventory process, you can relay the correct information to your customers and keep them happy.
- Reduced Costs. The ultimate benefit of barcoding technology is the cost savings it provides businesses. Barcoding has helped many manufacturers and distributors save hundreds upon thousands of dollars in terms of inventory and equipment costs. While there will certainly be an initial investment for barcoding hardware and software, the return on investment will be capitalized upon very quickly.
We could go on and on about the benefits of barcoding. If you are interested in learning more about how barcoding can improve your company’s productivity and profitability, contact us today. We can help guide you to the right barcoding solution for your business and help you integrate it with your current ERP software solution so you can begin experiencing the benefits of barcoding instantly.