Bar coding systems are a mainstay among leading retailers. If you aren’t using barcode technology in your business, you could face potential losses. But, you need to understand the biggest advantages before making the switch.
Retailers know traceability is an essential part of the supply chain. A recent study has shown that a lack of traceability could cause a $6.6 billion loss in global trade revenue.
Barcode systems are among the most widely used traceability systems today. They’ve proven effective across retailers and throughout the supply chain. This applies to retailers managing stores and warehouses.
Warehouse inventory management is particularly challenging. It comes at great cost, whether owning or renting. Inefficiencies affect all aspects of the operation.
We’ll review some barcode applications in these areas. Then we’ll discuss the top-five advantages of using barcodes in your business.
Components and Applications of Barcoding Systems
There are proven risks for retailers without traceability systems. There is no protection against the margin for human error. Vulnerable companies cannot hold supply chain operatives accountable.
Sensitivities to these distributions can overshadow investments in traceability. Fortunately, barcode technology is accessible and easy to adopt. Here are five components and applications you can leverage.
Next-Generation Barcode Readers
The best barcode readers can function in all warehouse environments and retail stores. They have superior connectivity and speed. They can collect data, giving managers a clearer view of the status of sensitive products.
For example, food retailers need data on how frozen products have been transported and the effect on shelf life. The right technology provides insights into how goods are handled at every junction.
Barcodes provide visibility into how much stock you have in your warehouse. They also help you identify inefficiencies. You can eliminate barriers that are a drain on your warehousing investment.
Recordkeeping and Regulatory Compliance
A digital system ensures your stock is up to standard and aligned with your ledgers. Even small companies need a streamlined method for recordkeeping. This alone justifies the investment.
Sales and Marketing
Barcode data can tell you lots about your customers. The right technology gives you better visibility into product performance. You can do more with marketing and sales efforts with that information.
Returns and Customer Care
You’re servicing customers better when you can pull up records quickly. You’re also more likely to save money on returns. It’s easier to return items to stock or keep track of related losses.
These are just five examples of how barcodes work for businesses. Each offers outstanding benefits to your business. We’ll review how bar coding systems help you succeed next.
5 Advantages of Using Barcode Technology
All retailers owe it to themselves to invest in traceability. Bar coding systems are the most approachable traceability technologies. They’ve been tested for decades and continue to offer more.
Consider the following advantages of barcode adoption. You’ll see how new technology makes these systems even greater. You can also visualize how they will apply to your business.
Creating Accountability Throughout the Supply Chain
Barcode and other traceability technologies align with your suppliers. That means you can hold them accountable for late or damaged deliveries.
This is especially useful for goods that expire. These and seasonal products lose their sales window when goods are delayed, damaged, or lost. Barcode systems help members of the supply chain hold each other accountable.
Retailers and other members of the supply chain can also work to align their records. This is easy to accomplish by using the same barcode data. Companies have greater visibility into sources, distribution activity, and inefficiencies.
Driving Efficiencies Throughout Your Operation
There are diverse aspects of your business. They may not always seem to intersect. Barcode technology can bind those aspects together.
Understanding sales provides opportunities for better merchandising. It allows for better purchasing as well. This increases efficiencies and sales output with minimal effort.
Those efficiencies extend into warehousing. Retailers’ worst nightmare is excessive warehousing costs with minimal sales. Barcode technology helps retailers maintain a lean operation without open shelf space.
Improving Engagement at All Customer Touchpoints
Customers won’t wait for the right solution to their complaint. Barcode technology helps you identify their purchased products immediately. They help you provide better immediate service this way.
If you have multiple store fronts, use barcodes so customers can return items anywhere. This increases customer satisfaction with your returns system. Satisfaction with returns is increasingly important to modern consumers.
Finally, expand your marketing and sales campaigns. Your data teaches you more about product and customer interactions. You can leverage that data to make smart and engaging decisions.
Building a Foundation for Future Growth
You’ll likely want to add additional technologies to your operation. Barcodes allow for future technical advantages and additions. That’s because your data is unified and ready to integrate.
For example, connecting a POS system further unifies aspects of your business. Starting with a barcode system facilitates that adoption. A POS system reduces shrinkage and adds new efficiencies to the storefront.
Improving the Bottom Line
There’s nothing wrong with managing your business using manual tools. But companies owe it to themselves to prepare for the next step. This is true even if the initial investment seems high.
There are a lot of moving pieces to any business. Every unique interaction creates either value or inefficiencies to operations. Optimizing these interactions makes up for the cost of the investment.
Binding together customer interactions with barcode technology multiplies business value. It streamlines customer experiences and reduces internal friction. Most importantly, it opens opportunities for businesses to scale.
As a traceability technology, barcodes are more approachable than others. It’s a great way for any retailer to begin taking business more seriously. For any small business, it’s a huge step forward into the modern retail environment.
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