5 Things to Know About Product Barcodes and Inventory Management

4 minute read

Efficient inventory management is vital for businesses of all sizes. Product barcodes and WMS play a pivotal role in optimising supply chain operations. In this article, we will delve into the fundamentals of product barcodes and explore how they integrate seamlessly with WMS to enhance warehouse efficiency, accuracy, and visibility. The Basics of Product Barcodes […]

Published on: Jun 16, 2023

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Efficient inventory management is vital for businesses of all sizes. Product barcodes and WMS play a pivotal role in optimising supply chain operations. In this article, we will delve into the fundamentals of product barcodes and explore how they integrate seamlessly with WMS to enhance warehouse efficiency, accuracy, and visibility.

The Basics of Product Barcodes

product barcodes & retail

What Are Product Barcodes?

Product barcodes are visual representations of information encoded in a machine-readable format. They consist of a series of black and white lines and are printed on product packaging or labels. Barcodes provide a unique identifier for each product, enabling quick and accurate data capture.

How Do Barcodes Work?

Barcodes work based on the principle of optical scanning. A barcode scanner emits light, which is reflected by the barcode lines. The scanner detects the reflected light and converts it into a digital signal that represents the encoded information. This information can include product details, such as the item’s name, price, and stock keeping unit (SKU).

Types of Barcodes

There are several types of barcodes commonly used in the industry. The Universal Product Code (UPC) is widely used for retail products, while the European Article Number (EAN) is prevalent in Europe. Additionally, there are specialised barcodes like QR codes, which can store more information and are often used in marketing campaigns and mobile applications.

The Role of Barcodes in Inventory Management

product barcodes & inventory management

Streamlining Inventory Tracking

Barcodes play a crucial role in inventory tracking by providing a standardised and efficient method of capturing and storing product information. By scanning barcodes, businesses can easily record the movement of goods, track stock levels, and identify discrepancies between physical stock and digital records.

Enhancing Accuracy and Efficiency

Manual data entry is prone to errors, leading to inventory discrepancies and costly mistakes. Barcodes eliminate the need for manual data entry by automating the data capture process. This automation significantly reduces human error and speeds up inventory-related tasks, resulting in improved accuracy and operational efficiency.

Enabling Real-Time Insights

By integrating barcode scanning with inventory management software, businesses gain real-time insights into their inventory.

They can monitor stock levels, track product movement, and generate reports to identify trends and make data-driven decisions. Real-time insights empower businesses to optimise their inventory levels, minimise stockouts, and improve customer satisfaction.

Understanding Warehouse Management Systems (WMS)

What is a WMS?

A Warehouse Management System (WMS) is a software application specifically designed to support and optimise warehouse operations. It provides end-to-end visibility and control over inventory, from receiving goods to order fulfilment. WMS helps businesses manage stock, track items’ locations, and streamline order processing.

Key Features of WMS

WMS offers various features that enhance warehouse efficiency and productivity.

These include inventory tracking, order management, picking and packing optimisation, labour management, and integration with other business systems such as enterprise resource planning (ERP) software. WMS acts as a centralised hub, coordinating and automating warehouse operations for seamless execution.

Benefits of Implementing WMS

Implementing a WMS can yield numerous benefits for businesses. It improves inventory accuracy, reduces stockouts, minimises order processing time, and optimises space utilisation. WMS also enables businesses to track order fulfilment metrics, improve customer service, and enhance overall supply chain performance.

Integration of Product Barcodes and WMS

product barcodes streamline operations

Automating Inventory Processes

By integrating product barcodes with WMS, businesses can automate various inventory-related processes.

Barcode scanning during receiving, put-away, picking, and shipping ensures accurate data capture, reduces manual errors, and accelerates task completion. This integration eliminates time-consuming manual inventory checks and enables real-time updates.

Improved Order Fulfillment

The combination of barcodes and WMS streamlines order fulfilment operations.

When an order is received, WMS identifies the location of the requested items through barcode scans. Warehouse staff can then efficiently pick and pack the items, reducing order processing time and enhancing order accuracy. This integration also facilitates order tracking and enables timely shipment notifications.

Enhanced Traceability and Visibility

Product barcodes integrated with WMS provide enhanced traceability and visibility throughout the supply chain.

From the moment a product enters the warehouse until it reaches the end customer, each step can be tracked and monitored. This visibility enables businesses to identify bottlenecks, optimise processes, and ensure timely delivery, ultimately improving customer satisfaction.

Challenges and Considerations

product barcodes wms

Barcode Quality and Scanning Accuracy

To ensure barcode scanning accuracy, it is crucial to use high-quality barcode labels and maintain them properly. Poor barcode quality can lead to scanning errors, which negatively impact inventory management and order fulfilment. Regular barcode verification and adherence to industry standards are essential for reliable scanning and data accuracy.

System Integration and Compatibility

When implementing product barcodes and WMS, compatibility between different systems is essential.

Barcode scanners should seamlessly integrate with the chosen WMS software to ensure smooth data exchange. Prioritising system compatibility and conducting thorough testing before implementation minimises potential disruptions and ensures a seamless integration process.

Scalability and Future Growth

As businesses grow and expand, scalability becomes a critical consideration.

When implementing product barcodes and WMS, it is important to choose solutions that can accommodate increasing inventory volumes and operational complexities. Scalable systems and flexible barcode labelling practices support business growth without requiring significant infrastructure changes.


Product barcodes and WMS are indispensable tools for efficient inventory management and streamlined warehouse operations. By leveraging barcodes’ ability to automate data capture and integrating them with WMS, businesses can achieve enhanced accuracy, efficiency, and visibility across their supply chains.

As technology continues to advance, the seamless integration of product barcodes and WMS will remain crucial for businesses seeking to optimise their inventory processes and deliver exceptional customer experiences.

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