Category Archives: Inventory Solutions

For a business just setting out on an endeavor to improve the efficiency of its inventory processes, there are a variety of factors to consider. Chief among these concerns, however, is implementing an effective barcode system. A barcode system is about more than just the barcodes themselves, although of course those barcodes are necessary. A barcode system that tracks inventory effectively is able to seamlessly integrate the barcodes with barcode hardware like a barcode scanner or a barcode reader, as well as with the latest barcode software. Today, there are more barcode software options than ever before, many of which are specifically designed to track inventory.

The options provided by the latest inventory tracking software are numerous. Businesses are now able to grant inventory database access to all of their employees, allowing for significantly improved synergy, workflow and productivity between employees and departments. The increased interconnectedness provided by greater access to inventory tracking software also increases efficiencies from business to business. Inventory fluctuations can now be communicated in real time to the manufacturing and shipping sectors, allowing for optimizations to be made throughout the supply chain. There has never been more real-time data available than there currently is thanks to cloud-based software and other recent innovations in the world of inventory tracking software. With all of these benefits, many of which require a complex process of implementation and systemization before they are fully realized, it can be easy for businesses to jump the gun and neglect the basics. Before a business or organization considers inventory tracking software, it needs to consider the unique nature of its inventory. This begins by determining whether it is a periodic inventory or a perpetual inventory.

Periodic Inventory

In a periodic inventory, updates to the inventory are made on a regular or “periodic” basis. In these cases, a business or organization makes decisions about its inventory through the framework of a fixed period of time. Many assess their inventory on an annual basis, a biannual basis or by financial quarter. Businesses that take a periodic inventory, at the end of each fiscal year for example, often require only a very basic version of inventory tracking software. Though the software needed for periodic inventory may be simple by industry standards, it is important for businesses to identify a comprehensive set of functions that the software needs to be able to perform and ensure that any prospective software program can perform these functions. Periodic inventory software is usually able to intake barcode scans and allow users to input quantity numbers. Other fields that this basic software is able to collect include location, bin, room and other item descriptions. The software can also synch with a database and allow users to look up information on an item based on its attributes like price or color.

Perpetual Inventory

Perpetual inventories require software that allows users to track inventory on an ongoing or continual basis. The major feature of this software is its ability to allow users to make real-time adjustments to an inventory. This ability to adjust inventory as items are received and shipped is a major advantage for businesses. Perpetual inventory tracking software also uses to conduct audits that compare the inventory data with the actual inventory. Perpetual inventory requires software that allows for more factors to be analyzed and adjusted by users, including things like Item Code, SKU number, minimum/maximum quantity allowed and quantity on hand. Whatever an organization’s type of inventory, there is a software program to help manage it

Barcode scanners are useful across a diverse spectrum of industries. The tools are so ubiquitous, in fact, that the particular industry that one associates with barcodes and barcode scanners usually has a lot to with the particular industry that one works in or is most familiar with. Anyone who has worked at a grocery store is intimately familiar with the usefulness of a barcode scanner in quickly scanning food items at the supermarket checkout counter. Anyone who has worked in the manufacturing sector understands the usefulness of barcodes in tracking inventory and tracking various warehouse processes—identifying any efficiencies in these areas or anywhere along the supply chain can lead to significant advantages for a business in the manufacturing sector.

The examples of the grocery store and the warehouse illustrate the diverse applications of barcode scanners. Those aforementioned examples also reveal the diversity of the barcode scanners themselves. Barcode readers in a supermarket are usually operated by a single person, and while this is sometimes true in a warehouse as well, the latter environment often utilizes a system of mounting several scanners on one piece of automated equipment to allow for more items to be scanned more quickly. A wide variety of types of scanners and readers for different purposes are available from top brands like Honeywell and Intermec.

Outside of these examples, however, is one industry that also relies on the barcode scanner is the retail industry. Barcode scanners have such a longstanding tradition of use in the retail industry that it can be all too easy for a retail business to rest on its laurels and refuse to optimize its use of a barcode scanner. While many shy away from examining business practices out of fear that increased investment will be required—a brand new, high-tech barcode scanner may be needed, for example—a review of a retail barcode reader system often reveals many areas in which money can be saved as well. Here are some tips for using barcode readers effectively in a retail setting.

Customized Barcode Labels

Many retail stores utilize customized barcode labels for the purpose of aligning the store’s inventory with its barcode readers and barcode software system. Retail stores who have never considered this practice may want to look into the possibility that it is the right choice for their situation. Other retailers, however, may want to consider dropping the practice if they are doing so currently and instead finding barcode readers and a barcode software system that fits with the existing barcode labels that come with the items. Which is the best option is dependent on a number of factors unique to the individual business. Money may be saved either way.

Other Money-Saving Tips

Many barcode software companies offer used and/or refurbished barcode scanners. These scanners can be purchased at a discounted rate and are often still able to perform well in a retail environment. Companies also offer barcode reader rentals that allow a store to try out a new model or a new style of barcode reader on a temporary basis to assess whether it is the right option for a particular retail business before a more significant investment is made. A final tip is to make sure that there is a system in place to ensure the care and maintenance of barcode readers; this saves money by avoiding the purchase of new equipment and costly repair bills.

A chain is only as strong as its weakest link, as the saying goes, and it turns out it is a saying that is just as applicable to supply chains. When most outside observers think about the links in a supply chain, they think in terms of broad categories like production, shipping and inventory. Of course, a glaring problem with any major aspect of a supply chain, such as those previously mentioned, is going to dramatically diminish the functioning of the overall process. What those who follow supply chains more closely understand, however, is that each broader category contains within it a series a series of sub-categories and sub-processes that are also crucial for the overall success of the entire supply chain.

Considering each aspect of a supply chain at such a micro level is important for several reasons. A breakdown in a major area such as shipping is obviously problematic, but it is usually such a glaring issue that it will receive the immediate attention it needs in order to get things back on track. By contrast, a problem with a small aspect of shipping, such as inefficient communication between a supply chain manager and a temporary trucking company manager, may be a subtle inefficiency that goes unnoticed for months or years at a time. Over the course of such an extended lifespan, a slight problem can build up even more long-term consequences than an obvious disaster. With that importance of attending to details in mind, here is a look at a few factors to remember that can affect the overall quality of an inventory system and thus the overall quality of a supply chain.

Staying Organized

For a type A, hyper-organized personality, there are few things more satisfying than setting up or analyzing a warehouse categorization system. Warehouses often hold tens of thousands of parts, a scale that requires a thorough, effective system of organization in order to locate what’s needed when it’s needed. As an example, many warehouses employ a categorization system referred to as ‘ABC classification,’ wherein the pieces of the inventory are given an A, B, or C label based on factors like the item’s value and the level of documentation that it requires; items given an A designation may be the most valuable and have the most documentation required in the event they need to be moved. There is more than one way to implement an inventory categorization system, and some are more conducive to different inventory sizes. Whatever system is used, it should be simple and easy to understand—and not just for one expert warehouse manager. To promote growth and efficiency, new people should be able to quickly learn the classification system.

Tools Of The Trade

Though warehouses don’t seem like a hub of modern technology, using the latest technology is a surprisingly vital part of modern inventory control. Inventory tracking hardware and software, which collects usable data by scanning inventory barcodes, is one example. Many businesses with smaller inventories choose to rent inventory scanners for this purpose. Integrating mobile technology through a warehouse management system and upgrading conveyor belt-based shipping systems are other ways a warehouse can improve its inventory control processes.

Relationships

While tech is important, old-fashioned personal relationships are also a vital part of warehouse and inventory management. Maintaining strong working relationships with each shipping supplier can help maintain success and efficiency. Often, a warehouse management system can be programmed to track supplier performance (by a number of different metrics such as communication and scheduling). This allows warehouses to assess the performance of each supplier and potentially provide incentives and consequences based on performance. In this way, new technology and old-school business practices need to stay competitive in today’s inventory game.

There’s no denying that smartphones have changed the way we communicate. On a personal level, it’s never been easier to quickly get in touch with people and to quickly execute a range of everyday functions—from banking to getting driving directions—all from phones that are getting smaller and more capable seemingly by the day. Of course, the increasing functionality, portability and efficiency of smartphones also means they’re changing the way many businesses function. Many of the smartphone facets that have changed our personal lives have the capacity, if scaled and adapted properly, to similarly change the way we do business.

In some ways, smartphones offer functions specifically relevant to the business world. One such function is their increasing ability to work with barcode technology. Smartphone apps are being developed that function as mobile barcode scanners, with the capacity to scan barcodes in order to store and transfer their data. When most people think of barcode technology and barcode scanners, they might think of supermarkets or the retail industry more broadly. While barcode technology has certainly been a growing part of the retail industry, it has also been a significant part of increasing efficiency within the manufacturing sector. As smartphones are increasingly able to scan the barcodes used by warehouses, how are business leaders within the manufacturing sector best able to gauge whether smartphones might be a good option for their situation? Here is a look at some factors to consider.

Range

In a warehouse setting, it is vitally important that a barcode scanner have the necessary scanning range. Many barcode scanner and inventory scanner rental options come equipped with an impressive range that warehouses are comfortable with. To this point, the consensus seems to be that the range of most smartphone barcode scanning apps is not yet up to part with the hardware that is designed specifically for the purpose of scanning inventory. Before eschewing regular barcode scanners completely in favor of smartphone scanners, make sure the smartphone scanning range is going to work for your warehouse.

Speed

Warehouse scanners also need to be able to scan quickly. Not only do they need to scan quickly, they need to be able to scan barcodes that are potentially difficult to read due to being smudged or dirty. Anyone familiar with warehouses understands that the environment isn’t the same as a clean, quiet office. To realize the economic and efficiency benefits that come with a barcoded inventory system, it is important that a scanner be able to move quickly through the inventory. Smartphone scanners are making progress as far as speed goes, but it may still limit your ability to use them for a warehouse, especially for relatively large inventories.

Cost

While the range and speed may limit your ability to use a smartphone scanner in the warehouse, the cost may be one variable in the smartphones’ favor. Considering the cost of a phone or tablet, a protective carrying case and the scanning app itself, there may be some cost savings when compared with a traditional barcode scanner. Renting barcode equipment may be the answer, getting all the power and efficiency of actual barcode scanners & varying equipment, at costs significantly lower than purchasing. Though it depends significantly on the nature and quantity of your inventory, a smartphone scanner may be something to consider even if it’s only as a supplementary tool.

A recent report, “Barcode Scanner Market: Global Industry Analysis and Opportunity Assessment, 2017-2027,” released by Future Market Insights (FMI), takes a look at recent, current and projected trends in the barcode scanner market. The major takeaway form the report is that the use of barcode technology is increasing at a significant rate. The use of the technology is rising in a variety of industries, with notable growth occurring within the retail and manufacturing industries. To most observers of the barcode technology industry, the report comes as no surprise. Over the past decade, more businesses than ever before are purchasing barcode scanners, while others are renting barcode scanners for seasonal, temporary or trial purposes. Not only does the FMI report observe a general upward trend going forward, it also comments on the specific reasons for the more widespread adoption of barcode technology. Here is a look at some reasons why businesses are incorporating more barcode technology into their operations and why they are projected to continue doing so in the future.

Fewer Errors

Tracking data using barcodes and barcode scanners has proven to result in fewer errors than when using manual data entry systems like spreadsheets. Current barcode software makes it easy to transfer the scanned data into spreadsheets so that companies can still perform all the data-oriented tasks they’re used to, only with the added benefit of more accurate numbers. As mentioned above, the greater accuracy is helping to improve the efficiency and bottom lines of many companies in the retail and manufacturing sectors. The report points out, though, that the sector benefitting the most from this accuracy going forward is the healthcare industry. Professionals in the healthcare industry—from pharmacists to physicians to those in administrative roles—are using barcode scanners to cut down on medication errors and greater analyze data related to things like the manufacturing dates of medication.

Less Manual Labor

Because of the improved accuracy involved in collecting data with barcode scanners, there is a concurrent reduction in the costs associated with the manual labor of data entry. This doesn’t necessarily mean jobs will be eliminated; often, the quick, accurate data provided by barcode scanners simply frees up workers to focus on other tasks and thereby improves the overall efficiency and bottom line of a company.

Data Analytics

Another reason for the increasing use of barcode scanners is the increasing effectiveness of data analytics. Data is only as valuable as the tools used to work with the data. Thanks to data analysts and data analysis software can do more with data than ever before, from incorporating it into their marketing strategy to increasing the efficiency of their supply chain. As a result, data is more valuable than ever. As a company is able to access it more quickly, it becomes more valuable; as a company is able to better ensure its accuracy, it also becomes more valuable.

Going Forward

One interesting prediction noted by the report is a shift toward camera-based barcode readers. Currently, most scanners use laser technology to read barcodes, but this may change going forward. While laser scanners are expected to maintain the largest share of the market, camera-based readers will become more popular. As with other forms tech hardware like computers and cell phones, there will also be a continued trend toward smaller sizes. Hand-held scanners are also expected to rise in effectiveness and popularity going forward.