Now a days barcodes are using in every field and industry, supply chain management is one of them. Using barcodes, makes business integration process simpler and more efficient in supply chain management.
Generally barcode labels are used to identify the products in supply chain management. Barcodes are read by the barcode scanners, which is one of the barcode device. Supply chain management is the system which includes the storage and movement of the raw materials, inventory and all range of finished goods from the beginning point to the ending point in their use. It is difficult to manage all related activities of the supply chain management like sourcing, conversion, procurement of the supplies and more. Barcodes can be considered as the effective identification tool which help track the products and reduce the errors and get accurate work. There are some advantages of using the barcode in supply chain management, such as:
Cost reduction: Using barcode technology in inventory practices helps to provide accurate information which helps to operate warehouse with great efficiency and lower inventory. Company can estimate when they have shortage of the stock and can place the order with suppliers to get stock by using the barcodes along with the Just In Time inventory method. Company need not depend on the huge buffer stocks, by using these barcodes. They need not use the warehouse and extra stock, by this they can save money.
Quality control: Barcodes capture the information such as timelines, serial numbers, materials which used, other critical information, so if there is any defect found in a product of a particular batch, it can be identified. So barcode ensures the quality of the products.
Cost saving: Using barcodes in large-scale in supply chain management helps the organizations to save the cost. It can be done by reducing the level of errors, reducing the labor.
In this way, barcode can be used in supply chain management in order to get many advantages of the barcodes.
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