How Barcode Labels Can Decrease Operational Costs
In a warehouse setting, barcodes can significantly reduce the two main categories of loss that any company holding inventory can incur – holding inventory without sales, and losing sales because inventory is too low. Barcode labels can be used to optimize receiving, replenishment, picking, packing, shipping, returns, cycle counts, value-add functions, labour tracking and more.
So how can this improve process efficiency, and as a result, decrease overall operational costs?
Barcodes have been proven to vastly decrease clerical costs. Data entry and clerical errors cause a drain on profits by angering customers. This results in lost time from tracking the source of errors, and extra shipping costs. Worse, they can cause major problems beyond costs if you are dealing with sensitive items like medical supplies.
Reduce human error by performing cycle counts, receiving, picking, and packing using barcode labels. Removing manual processes will significantly reduce mistakes. Also lost time incurred when work needs to be double checked or the source of errors needs to be located. Barcode scanners are much more accurate than human fingers.
Increase Inventory Accuracy
Having a more accurate account of your inventory will reduce obsolete stock and allow you to restock faster. Tracking inventory with barcodes allows you to quickly tell customers exactly what you have in stock and when you can get it to them, making it easier to maintain appropriate levels. Having an accurate account for all of your inventory enables you to make business decisions faster and more intelligently, such as when to reorder, discount product for liquidation, or transfer stock to another region. It can even help you locate where a specific item is in your warehouse.
Tracking employee performance enables you to increase employee output. Know the immediate source of errors, correctly, objectively evaluate the quality of individual employees’ performance, and optimize processes for efficiency. Barcode labels and scanners enable all of the above by tracking items at every stage of a process. Assign a unique code to each employee and remove the guess work.
Schedule More Efficiently
You can schedule more efficiently by applying the data you can acquire through tracking with barcodes. Maximized productivity, combined with accurate data about processes and employees, equals better use of your human resources. Using barcode labels allows you to schedule on the basis of time as you now know what the requirement is to complete each task, removing the guess work.
Data is power and time is money. Imagine having both at your fingertips. Barcode labels can make your company more efficient, productive, and profitable. Tracking your inventory and processes through barcode scanning can create better experiences for your customers, employees and management.