Warehouse Management System - Barcode Primer

Posted by Gerry Poe

erp and barcode primerAutomated data collection lowers labor costs by reducing overall setups, idle time, cost of expediting, and time spent correcting errors.

Unlike data collected manually, there is virtually no delay between when a bar code reader and when it potentially can be made available to managers, technicians, or shop floor people read the data into a system. By using a radio frequency (RF) data collection system, data can be uploaded directly from the warehouse floor into SYSPRO ERP permitting information to be current at all times.

Barcode Benefits in a snapshot:

  • Automated data collection, using barcodes literally occurs at the speed of light.
  • Humans make mistakes; automated data collection systems don't.
  • The accuracy of the gathered data is dramatically improved.

With automated data collection, however, users can reasonably expect an error rate better than 1 in 1 million.  Consequently, the collected data is all but flawless.

How do these features improve efficiency and lower costs? 

Many of them are intangible under conventional cost justification models.  There are, however, tangible ways that automated data collection can improve your business' profitability.  These include:

Lower Labor Costs

By eliminating manual data entry, associated fixed labor costs are immediately reduced.  These reductions alone can justify an investment in automated data collection. But other labor costs are reduced as well. 

For example, administrative labor is reduced because less time is spent correcting errors.  Fewer errors and more timely, accurate information also mean fewer and shorter meetings for managers and executives, which reduces their labor costs. 

Automated data collection lowers labor costs by reducing overall setups, idle time, cost of expediting, and time spent correcting errors.

Reduced Inventory Costs

Without accurate inventory levels, companies overcome this problem by carrying higher levels of inventory. Carrying excess inventory, therefore, translates into substantial, and needless, costs.  Conversely, carrying too little inventory means lost sales and/or dissatisfied customers.

By providing accurate, real-time data on production and sales, automated data collection reduces obsolescence, safety stock, and WIP.  The benefit for your business is lower inventory costs without risk of lost sales.  

Better Quality Control

Controlling costs is only half the battle, however.  In today's global marketplace, controlling quality is at least as important to financial success.  Today's innovative manufacturing strategies, such as Just-In-Time, focus on the elimination of non-value adding processes and the prevention of defects rather than their correction after the fact.

Preventing defects rather than merely correcting them requires up to the-minute information about every phase of your production cycle.  By eliminating lag time between production and data collection, automated data collection ensures that you have all the data you need at your fingertips now, when you need it.  No longer are you merely reacting to events.  You are now able to make the best decisions for your business because you have the best data.

Improved Customer Service

Better information means better service.  Automated data collection significantly reduces errors and delays arising from faulty data.  With automated data collection, shipments are prompt, product quality is consistent, and billings are accurate.  The result is more satisfied customers.


Warehouse Management Systems based on adaptable architecture enable businesses to respond to changing environments. Implementing this type of flexible system as an alternative to traditional WMS systems positions you to meet future customer service demands.

Learn more about Warehouse Management Systems:

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Tags: Warehouse Management, Data Collection, Ritetime

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