Why are barcodes still relevant in ERP?

Many manufacturers are still using barcodes for inventory, with some going a step further in using QR codes. Barcode scanning is a powerful component of any physical inventory management system. That can make a major difference in running an efficient warehouse. However, with new ERP implementations, some may wonder if it's good to step away from using that as a way of tracking goods and parts for processing and shipping. With this in mind, it's important to remind businesses about the additional benefits that can be employed with barcoding inventory.

The data is all there
Barcode scanning remains an important element of inventory management because of the data it provides. ERP systems need accurate data to provide a clear picture of how resources are being procured and processed. This is especially the case in manufacturing, where orders need to be clearly tracked to keep customers satisfied and to better gauge productivity. It's not so much the mechanisms for recovering that data has changed, but that the means of managing and analyzing have been improved. The barcodes simply make that process easier.

There are numerous processes to gain from maintaining barcodes. For one, it's easy to train workers on the factory floor to capture all the data, according to printer Verified Label. All they need to know is how to use the barcode scanner, and they're good to go. In addition, it's very easy to print out a barcode with all the information necessary to identify a given part or good.

More importantly, as said before, data management becomes simplified with barcoding. Physical transactions are handled a lot more easily. Previously, despite effective use of data management, transactions were still done on paper. That can lead to mistakes, with Modern Machine Shop noting errors occur once every 300 characters, or about 60 words. That can lead to significant mistakes that ultimately send an order to the wrong place, or less than the intended amount going to wrong place. This in turn leads to a loss of sales. With barcode scanning, those problems are mitigated greatly. Inventory is better managed once the manufacturer has a clear picture of the situation in the warehouse. It can lead to better customer service and greater profit margins from not having to make up for problems stemming for these errors.

For more information on improving efficiency with barcode technology, download the free white paper entitled "Keeping the Physical World and the Virtual World in Sync" from DMS today.