Barcode Inventory Management: A Modern Approach To Inventory Control

Last Updated: October 31, 2024
A person scanning inventory in a warehouse​

Whether you’re facing stock discrepancies in your store or struggling to track your clinic’s medical supplies, barcode inventory management offers a powerful solution.

Join us as we explore barcode scanning and the benefits of barcode inventory management. Plus, discover how to implement a barcode inventory system for your business and how mobile forms can optimize your operations.

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What Is A Barcode Inventory System?

A barcode inventory system tracks and manages inventory using machine-readable codes made up of a series of vertical lines or patterns.

By automating data entry and the tracking of stock levels and sales, companies can streamline their inventory management processes.

Barcode inventory systems are used across various industries, including:

  • Retail, to track products and manage stock levels, reducing wait times and improving customer experience.
  • Manufacturing, to monitor raw materials, track production processes and manage finished goods inventory, ensuring optimal workflow and reducing waste.
  • Healthcare, to track medical supplies, medications and equipment, enhancing patient safety and inventory accuracy.
  • Logistics and warehousing, to manage inventory movements, optimize storage space and improve order fulfillment processes.
  • Food and beverage, to track inventory freshness, manage stock levels and ensure compliance with food safety regulations.
  • Pharmaceuticals, to track medications, manage prescriptions and stay compliant.
  • Library and information services, to manage book checkouts, returns and inventory tracking, as well as facilitating organization and resource access.
  • Construction, to manage equipment and materials, track inventory on job sites and ensure project completion.
  • Automotive, to track parts and components, manage assembly processes and ensure accurate inventory levels.
  • E-commerce, to manage product listings, track stock levels and streamline shipping and fulfillment processes.
A woman with a scanner checking barcodes in a warehouse​

Barcode inventory systems are used across various industries, from retail and manufacturing to construction and automotive​

How Barcode Scanning Works

Barcode scanning involves several steps that work together to improve inventory management and accuracy.

  • Inventory management software generates a barcode, which serves as a unique identifier for each product.
  • The barcode is printed on a label, which is attached to the product or packaging.
  • When a product needs to be tracked or sold, a barcode scanner reads the barcode and converts it into digital data.
  • The scanned data is sent to the inventory management software, which updates the inventory records in real time, reflecting changes in stock levels, sales, orders and returns.
  • When needed, the system generates reports, providing insights into inventory status and sales trends.

Benefits Of Barcode Inventory Management

Barcode inventory management supports cost savings and customer satisfaction, which makes it a valuable investment for your business.

Improved Accuracy

Barcode scanning eliminates the risks of manual data entry errors, such as typos or miscounts.

As a standardized method of labeling products, it reduces discrepancies between actual stock and recorded data, always providing precise information.

Increased Efficiency

Scanning barcodes is faster than manual counting and data entry. Employees can scan numerous items in a short time, which speeds up processes like receiving shipments, processing transactions and conducting inventory audits and leads to smoother operations.

But there’s more. Due to the user-friendly nature of barcode systems, new employees can quickly learn to use the scanners and inventory management software, becoming fully functional for your business in no time.

Real-Time Visibility

Barcode systems provide real-time data on inventory movement throughout the supply chain.

Instant updates on current stock counts allow you to decide on inventory replenishment, sales strategies and operational adjustments as well as identify bottlenecks and improve inventory flow.

Cost Savings

Barcode inventory management allows you to reduce the number of hours spent on manual counting and data entry and decrease the labor needed for these tasks.

It also helps prevent overstocking and stockouts, ultimately leading to cost savings.

Enhanced Customer Satisfaction

Barcode inventory systems support faster order processing, which reduces wait times and improves customer experience.

But that’s not all. Real-time visibility into your inventory helps you keep all popular items in stock, minimizing the risk of disappointing customers with stockouts.

A business owner checking parcel info on her smartphone​

Barcode inventory management improves accuracy, provides visibility and saves money​

How To Implement A Barcode Inventory Management System In Your Business

If you are unsure of the steps to follow to implement a barcode inventory management system in your business, read on. We’ve compiled a detailed guide to help you in the process.

1. Assess Your Inventory Needs

  • Look into your current inventory management process.
  • Identify challenges and areas where automation could provide improvements.
  • Determine the size and type of inventory you need to track and manage.
  • Determine the volume of items in stock.
  • Decide on the barcode that aligns with your needs, whether Universal Product Code (UPC), Code 39 or Quick Response Code (QR Code).

2. Choose the Right Barcode Inventory Management Software

  • Choose inventory management software that offers barcode scanning capabilities.
  • Look for features like real-time tracking, compatibility with existing systems and scalability.

3. Select Barcode Hardware

  • Choose barcode scanners and label printers that are compatible with your software.
  • Decide whether you need handheld scanners for mobility or fixed scanners for high-volume scanning.

4. Generate & Assign Barcodes

  • Use your inventory management software to create unique barcodes for each product or stock-keeping unit (SKU).
  • Print barcode labels and place them on your products or packaging.

5. Establish Inventory Procedures

  • Define how items will be received, stored and moved within the business.
  • Create guidelines for regular inventory counts, barcode scanning and handling stock level discrepancies.

6. Train Team Members

  • Train staff to use barcode scanners and the inventory management software.
  • Make sure employees understand how to update inventory in real time.

7. Integrate With Existing Systems

  • Integrate the barcode system with your current system, whether it’s point-of-sale (POS) or enterprise resource planning (ERP).
  • Make sure there is smooth data flow between the systems to prevent inventory record discrepancies.

8. Start With A Pilot Test

  • Implement the system for a sample set of products.
  • Monitor for discrepancies in scanning, data entry and software integration.
  • Adjust your settings based on the pilot test results and feedback from test phase participants.

9. Monitor & Optimize

  • Continuously check the system’s performance and make improvements to streamline workflows (Read more about workflow management software).
  • Review inventory reports to ensure accurate tracking and efficient processes.

Improve Your Barcode Inventory Management With doForms

doForms is a modern mobile form solution that can support barcode inventory management by streamlining data collection and improving accuracy.

The Barcode tool allows your employees to scan a barcode directly into a mobile form using their device’s camera and instantly update inventory records from anywhere, eliminating the need for manual data entry.

Using the Barcode tool is child’s play. All the user needs to do is tap the “Scan” button on a mobile form. This then activates the mobile device’s camera or 2D imager and when the barcode is centered and scanned, the data is automatically transferred to the appropriate field on the form.

The Barcode tool also allows data to be split into multiple fields and automatically assigns them to the appropriate destination fields on the form.

doForms integrates with various scanner manufacturers’ APIs such as:

  • Datalogic
  • Honewell
  • Janam
  • Keyence
  • Zebra

doForms supports various barcode formats including:

  • UPC-A
  • UPC-E
  • EAN-8
  • EAN-13
  • Code 39
  • Code 93
  • Code 128
  • QR Code
  • ITF
  • Codabar
  • RSS-14 (all variants)
  • Data Matrix
  • PDF 417 alpha quality
  • Aztec alpha quality

doForms ensures that stock levels are accurately tracked in real time, helping your business avoid overstocking or running out of items.

Our mobile forms can also be customized to include fields for tracking product details, lot numbers or expiration dates, boosting inventory audit efficiency.

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FAQs About Barcode Inventory Management

For more information about barcode inventory management and mobile forms, check out the answers to some frequently asked questions in the section below.

What are the benefits of using mobile forms for barcode inventory management?

Using doForms can help you improve inventory tracking accuracy, provide real-time updates, speed up inventory processes, reduce errors and access reports and data from any location at any time.

Do I need a scanner to use barcode inventory management with mobile forms?

No — doForms allows you to use mobile devices with cameras as scanners for barcode inventory management.

How do mobile forms help reduce errors in inventory management?

doForms eliminates the need for manual data entry, which minimizes the likelihood of mistakes such as miscounts, incorrect entries or misplaced inventory.

Can mobile forms be customized for different inventory needs?

Yes. With doForms, you can create tailored forms with specific fields for barcode scanning, product details, stock levels and more to suit your inventory management needs.

Can I use barcode inventory management with mobile forms for all business sizes?

Yes, doForms is a scalable solution that businesses of all sizes can use, from small retailers to large warehouses.

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