Introducing a barcode system in manufacturing can streamline operations, reduce errors, and significantly boost productivity.
If you're exploring ways to enhance your manufacturing processes, you're in the right place.
We’ll look at the best barcode systems for manufacturing and break down the benefits and challenges of the different types of barcode systems for manufacturing.
What is a barcode system for manufacturing?
A barcode system for manufacturing involves using barcodes to track and manage various aspects of the production process. Barcodes are scanned to provide real-time data on inventory, track work-in-progress production, and improve accuracy in order fulfilment.
One example of how these systems are used is the improvement of raw material traceability. A manufacturer can use barcodes to track raw materials used in production, ensuring timely reordering and efficient resource management.
Barcodes enhance efficiency by helping to maintain more accurate records and reduce human error. By incorporating a barcode system into your operations, you can ensure that processes are smoother, more transparent, and easier to manage.
What is a barcode?
A barcode is a machine-readable symbol of data, typically presented as parallel lines of varying widths and spaces. Barcodes encode information like product numbers, serial numbers, and batch numbers, that are quickly scanned and interpreted by a barcode reader.
Barcodes are crucial in tracking and managing inventory, streamlining processes, and enhancing overall efficiency in manufacturing.
Types of barcodes used in manufacturing
Two primary types of barcodes are used in manufacturing: 1D (one-dimensional) and 2D (two-dimensional) barcodes.
1D Barcodes
1D barcodes, often referred to as linear barcodes, consist of parallel lines of varying widths and spaces and are the most traditional form of barcode. They are widely used for simple applications such as labelling products and tracking inventory in retail, warehousing, and shipping.
1D barcodes are the most common type of barcode and are read horizontally by barcode scanners.
They include:
- UPC (Universal Product Code)
- Code 128
- EAN (European Article Number)
- Code 39
- Interleaved 2 of 5 (ITF)
1D barcodes consist of a series of parallel lines and spaces of varying widths that represent encoded data.
2D Barcodes
2D Barcodes comprise horizontal and vertical information, allowing them to store significantly more data than their 1D counterparts.
Examples include QR and Data Matrix codes, frequently employed in manufacturing for intricate tasks like tracking parts, and components and managing detailed production data.
5 benefits of barcoding systems for manufacturing
Manufacturing barcode systems are a powerful way to improve the speed and accuracy of your processes, resulting in greater productivity and reduced inventory carrying costs.
5 key benefits of barcode systems for manufacturing:
- Improved productivity
- More accurate order fulfilment
- Enhanced inventory management
- Better traceability
- Reduced business costs
1. Improved productivity
Barcoding reduces the time spent on manual data entry and inventory counts, allowing employees to focus on other tasks.
Instead of laboriously recording product information by hand, employees can scan barcodes. This automation frees staff to concentrate on more value-added activities such as product development, process optimisation, and customer service. The overall efficiency leads to quicker turnaround times and a more streamlined operation.
2. More accurate order fulfilment
Scanning barcodes ensures that the correct items are picked and shipped, reducing mistakes and improving customer satisfaction.
By scanning barcodes during the picking and shipping process, manufacturers can ensure that the correct items are selected and sent to customers. This minimises the chances of human error, such as sending the wrong item or quantity.
As a result, customer satisfaction improves due to more reliable and precise order fulfilment, reducing returns and enhancing brand reputation.
3. Enhanced inventory management
Real-time data provided by barcode scanning allows for accurate and up-to-date inventory levels. This visibility helps in monitoring stock movements, enabling better forecasting and planning.
By maintaining optimal inventory levels, manufacturers can avoid overstocks, tying up capital in excess inventory and stockouts, which can delay production and sales. Efficient inventory management translates to smoother operations and lower carrying costs.
4. Better traceability
Barcodes allow manufacturers to trace every component and finished product throughout the production process. This traceability is invaluable for quality control. It enables manufacturers to identify the source of defects and other issues quickly.
Additionally, it assists in compliance with industry standards and regulations by providing detailed records of each item’s history, from raw material to final product. Enhanced traceability ensures accountability and can help quick recall if the situation arises.
5. Cost savings
Implementing a barcode system can lead to significant cost savings. By minimising errors in data entry and order fulfilment, operational inefficiencies and the costs associated with correcting mistakes (such as returns and rework) are greatly reduced.
The improved inventory management enabled by barcoding can reduce holding costs and prevent losses due to obsolescence or spoilage. The increase in productivity and accuracy translates directly into financial savings.
8 ways barcode systems work in manufacturing
Barcode systems have numerous applications in a manufacturing setting. While commonly associated with inventory control, they offer unique benefits across the entire production process.
Let’s look at some common applications of barcode systems in manufacturing.
1. Inventory management
Barcodes facilitate real-time inventory tracking, ensuring accurate stock levels and timely reordering. This prevents production delays due to stockouts and reduces excess inventory costs.
For example, a retail store uses barcodes on all products. When a customer purchases an item, the barcode is scanned, automatically updating the inventory system. This real-time update helps to maintain accurate stock levels and alerts you when it’s time to reorder popular items.
2. Batch tracking
Barcodes help track production batches from raw materials through finished goods. This ensures traceability and simplifies recall procedures if necessary.
In food manufacturing, for example, each ingredient and final product is assigned a barcode. If a recall occurs due to contamination, you can quickly trace the issue back to a specific batch, streamlining the recall process and minimising impact.
3. Bill of materials management
Barcodes assist in tracking each component in the bill of materials, ensuring all necessary parts are available when needed and reducing production stoppages.
For example, an automobile manufacturer uses barcodes to label every part of their assembly line. Before production begins, workers scan the barcodes to verify that all components are available. This reduces the likelihood of production halts due to missing parts.
4. Accounting
Barcoding integrates with accounting systems to provide accurate data on costs and inventory valuation, streamlining financial reports and audits.
For example, a warehouse utilises barcodes to track the cost of each inventory item. When items are moved or sold, the accounting system is automatically updated with accurate data, making it easier to generate financial reports and conduct audits.
5. Quality control
Barcodes ensure that quality control checks are accurately recorded and linked to specific batches or products, improving overall product quality.
In a pharmaceutical company, a barcode is allocated to each batch of medication. Quality control inspectors scan these barcodes during inspections and results are logged electronically, ensuring that each product batch meets safety standards.
6. Compliance
Barcoding helps manufacturers comply with industry regulations by providing detailed records of production processes and materials used.
For example, a medical device manufacturer uses barcodes to keep detailed records of each component used in their products, and the production processes followed. These records are essential for complying with industry and government regulations and can be quickly accessed if required by auditors.
7. Receiving
Barcodes streamline the receiving process by quickly verifying shipments against purchase orders, reducing errors and delays.
For example, when a shipment arrives at an electronics store, employees scan the barcodes on the items to instantly verify them against the purchase order. This ensures that the correct items have been received and reduces discrepancies.
8. Order fulfilment
Barcodes ensure accurate picking, packing, and shipping of orders, improving efficiency and customer satisfaction.
For example, an eCommerce warehouse uses barcodes to manage order fulfilment. Workers scan items while picking, packing, and shipping orders. This ensures accuracy and customers receive the correct products, enhancing their overall experience.
The best barcode systems for manufacturing: Key features
A great barcode system for manufacturing should deliver efficient, accurate, and scalable solutions.
Key features to look for include:
- Real-time data capture: Real-time data capture ensures that inventory and production data are instantly updated as barcodes are scanned. This immediate capture and update help reduce delays in data availability, enhance decision-making, and improve overall accuracy in inventory tracking.
- Integration with ERP and accounting systems: A barcode system must seamlessly integrate with your existing ERP and accounting systems to ensure smooth data flow across all business processes. This integration helps synchronise inventory levels, sales orders, and financial data, leading to more coherent and efficient operations.
- User-friendly interface: A user-friendly interface ensures staff can easily navigate and utilise the barcode system without extensive training. The interface should be intuitive, with clear instructions and easily accessible functions, enabling quick adoption and reducing errors caused by user confusion.
- Robust reporting tools: Robust reporting tools enable detailed analysis and monitoring of inventory and production trends. Look for a barcode system that offers customisable reports, real-time analytics, and dashboards that can provide insights into usage patterns, stock levels, and potential issues.
- Scalability: As your business grows, so will your inventory and production needs. A scalable barcode system can accommodate increasing volume and complexity without a significant overhaul. Scalability ensures long-term usability and return on investment by adapting to expanding operations.
- Support for multiple barcode formats: A versatile barcode system should support various barcode formats (e.g., Code 128, QR codes, Data Matrix) to cater to different needs within the manufacturing process. This flexibility allows you to choose the most appropriate barcode type for inventory items, tracking needs, and environments.
- Mobile compatibility: Mobile compatibility enables on-the-go scanning and data entry, especially in large manufacturing facilities. A system that supports mobile devices such as smartphones and tablets can increase operational efficiency by allowing staff to capture and access data from anywhere on the shop floor.
By automating data entry and inventory processes, barcoding frees staff to focus on more value-added activities, while ensuring precise order fulfilment to boost customer satisfaction. The real-time data from barcode scanning helps maintain accurate inventory levels, reducing both overstock and stockouts and optimising resource allocation.
Overall, the cost savings, improved efficiency, and better inventory management make barcode systems for manufacturing, an indispensable tool for modern production environments.
Boost manufacturing inventory tracking with Unleashed
Unleashed is a powerful manufacturing and inventory management solution that connects production planning with barcode scanning functionality, delivering an end-to-end system for managing all your sales, production, purchasing, and stock control responsibilities.
To learn more about Unleashed, speak to one of our manufacturing experts today – or start a risk-free 14-day trial and see how it can work for your business.
