Get the latest updates and releases from Skusuite.

3 Pros And Cons Of Using Barcodes For Inventory Management

A barcode is a machine-readable code with parallel lines and numbers printed on products and commodities. They are an essential tool in warehouse operations and inventory management.

Before using barcodes for your warehouse inventory management, you must know how to utilize them to ensure efficiency and maximum ROI.

Statistics show inventory inaccuracy is responsible for 8.7% of lost sales. You can reduce these numbers by understanding barcode benefits and associated challenges.

Advantages of Using Barcodes

Following are the benefits of using barcodes for your inventory management:

1.      Fast And Accurate Data Storage

Barcodes eliminate the use of manual methods of data storing. It reduces the chances of errors and improves data accuracy. You can track the inventory through barcode without any paperwork, making it easier to reorder and store an appropriate amount of product when need be.

Moreover, paperwork often gets misplaced, easily lost, or unauthorized people can access it. With barcodes, you can limit the access data to authorized people only.

2.      Save Labor Cost

Labor cost is one considerable expense for a business. You must pay people to get the paperwork and other relatable things done. You can save these costs by using tools like barcodes to eliminate the lengthy manual restocking procedure or tracking inventory.

These codes will enable you to digitally control most inventory operations without paperwork and with fewer errors.

3.      Better Insights On The Data

Digital data recording gives machine-generated reports with intelligent insights into the inventory and business performance. You can use this data to make decisions and predict future growth.

Managers can know which products are performing well, what should be on priority for stock keeping and what areas need improvements.



Three Challenges Of Using Barcodes

Using barcodes comes with its challenges. You may face the following

1.      Barcodes By Manufactures

Many manufacturers provide barcodes on the products, and warehouses work on individual selling units. If the manufacturer does not offer the barcodes, you must get them. The process can be difficult and costly for some businesses to relabel.

Moreover, you will need vendor compliance capabilities to complete the manufacturers’ process.

2.      ROI On Barcodes Are Not Feasible

Businesses with few products and a small distribution channel may not significantly benefit from barcode systems. You have to make sure to calculate the ROI on barcodes and the possible benefits of it for your business.

3.      Warehouse Management System Is Required

You will require some level of warehouse management system before implementing the barcodes. You will also need some labor assistance to handle barcodes.




Barcodes are an efficient way of securing data and maintaining inventory. Moreover, it also gives information on individual products. For example, you can know the manufactures details, expiration date, name, and other details.

If you have adequate resources and need to have barcodes, then you can try to create your system. You can print unique codes, create software and train your staff accordingly.

Image Source: Pixabay

Image Source: Unsplash

Share Our Story

Subscription Subscribe to our newsletter and receive a selection of cool articles every weeks

The Latest

Understanding SKUs And How To Set Them Up

Understanding the SKUs, their implementation, and their uses are crucial for businesses. They have become the core focus for better inventory and warehouse management. This

Top Goals For Supply Chain Management

The United States supply chain market is growing with a 10.8% CAGR and currently stands at $16.64 billion. The industry has great potential and offers