Keeping track of inventory activities is crucial for efficiency, but that requires chasing every item manually. There are thousands of items of varying size, color, and with different expiry dates lying in the warehouse. Also, granular details like when the particular product arrives at your warehouse, and on which shelf the item is placed? Whether it is expired or new? Tracking these details can have an enhanced impact on your operations, especially for categories like cosmetics, FMCG, and pharmaceuticals.
If you think you are handling everything smartly on an Excel sheet, it may work for a few items, but as your order volume grows to thousands and even lakhs, you’ll start witnessing discrepancies in the system. It only increases the risk of errors, leading to wrong picking, misplaced or missing items, theft, and older stock piling up while new inventory moves out. The best way to solve these problems is by using an automated system that makes inventory tracking easy and accurate. A barcode inventory management system is one such solution that allows every item to be scanned, tracked, and updated in real time, reducing errors and improving visibility, especially for high-value products like jewelry and electronics.
Understanding All About Barcodes & Their Types in Inventory Management
Barcode tracking boosts the overall efficiency of inventory management. It reduces the burden of warehouse staff by providing 100% accuracy in tracking thousands of inventory items. Stocking, order fulfilment, and restocking of returned items are easily processed with faster and enhanced accuracy.
In barcoding, labels are generated and pasted on each SKU or every item. The identification of every item in the inventory relies on this single barcode, which the warehouse staff can simply scan to extract detailed information like the product name, size, color, etc.
Let’s understand how many types of barcodes are used in the e-commerce industry for better clarity.
1D Barcodes
1D Barcodes are linear barcodes and are extensively used in product packaging. In these barcodes, information is stored in a single dimension using parallel vertical lines with varying widths. Some popular examples of 1D barcodes are UPC and EAN; these are the most commonly used and recognized barcodes worldwide.
- UPC – Universal product code is a 12-digit code represented by strips of bars and spaces. They are most commonly used to streamline inventory tracking in the warehouse.
- EAN – European Article Number is a 13-digit code that looks similar to UPC and can store a large amount of data in a small area.
2D barcode
2D barcodes store information in two dimensions – horizontal and vertical. This allows them to store more data compared to 1D barcodes. Further, they are split into two categories.
QR codes
Today, QR codes are widely used in warehouse management and retail operations. With tools like the QR code generator by Uniqode, businesses can easily create and customize codes that are flexible in size, have fast readability, and can be scanned via mobile devices.
Data Matrix Code
Data matrix code is used to label small items. They can work even in low resolution and with imperfect scanning positions.
Why Do You Need a Barcode Inventory Management System
The inventory size may vary from a few hundred to lakhs for different sellers. You never know where your inventory is placed in the warehouse and whether it is in good condition or not. There could be delays in order processing or even a possibility of processing wrong orders. That’s what calls for a system that can track each inventory in the warehouse so that warehouse staff and sellers have complete visibility and control over their inventory.
here are some of the benefits-:
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1.Shelf Level Tracking
- Accurate product placement of stocks that arrive at the warehouse
- Ensure faster picking and minimum errors in dispatch.
Barcoding at the shelf level ensures:
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2. Handheld Device Support
- Faster and more convenient picking process
- Instant error alerts on wrong item scans, ensuring accurate order fulfillment.
Warehouse staff can scan product barcodes directly with handheld devices:
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3. Simplify the Cycle Counting Process
- Quick cycle counting via scanning
- Minimize disruption to daily warehouse operations
Speed up the entire stock verification process:
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4. Multi-warehouse Activity Visibility
- Enhanced visibility with gatepass tracking
- Avoid inventory misplacement for high-value items
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5. Expiry Date Tracking
- Automatically track ageing inventory
- Implement accurate FIFO/FEFO
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6. Returns Made Easy
- Identify returned products easily
- Proper allocation of returned products to their original shelves
Understanding Traceability Methods in Inventory Management
The entire inventory journey during the process can be easily tracked via a single scan. From accurate storage to processing the right order & managing returns, everything happens smoothly with the help of barcoding. Also, depending on the type of inventory – cosmetic, electronics, FMCG product, you can implement a different type of traceability.
1. SKU level Traceability
When individual pieces of products don’t need a unique identity, they are barcoded with one SKU code.
- Ideal for: tracking stock by style, size, or batch is sufficient
- Benefit: Track a whole lot or batch at once
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For instance:
100 pieces of red T-shirts → SKU123
100 pieces of blue T-shirts →SKU221.
No two red T-shirts will have unique barcodes.
2. Item-level traceability
When every piece of product is barcoded with unique SKU codes like SKU 123, SKU 124, SKU 125.
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Ideal for: Mostly the electronic, pharmaceutical, and cosmetic industries
Benefit: To track the history of each piece throughout its lifecycle, including when the particular item was purchased from which vendor at what price, and more.
Paracetamol 500mg, Batch A → Serial: PARA500-A-0001
Paracetamol 500mg, Batch A → Serial: PARA500-A-0002
Unicommerce Barcode Inventory Tracking Systems
At Unicommerce, you can get a higher level of inventory tracking that makes your inventory management 100% accurate. This lets you have an organized warehouse with dedicated space to keep inventory based on variants like colors, expiry dates, size, etc. This makes pickers’ lives easy and also enables management of complex inventory like FMCG products, cosmetics, etc.
1.Single Point of Barcode Generation
You can print barcodes at the time of GRN from our system; therefore, you don’t need to set up a different system to generate barcodes. For instance, you receive 100 products, out of which you have completed the GRN
of 50 products, you’ll receive an option of ‘Print dialog’ from where you can print barcodes.
2. Batch-level Tracking
FMCG or pharmaceutical products require deep-level tracking and management because of expiry dates. With our system, you can create batches based on expiry date and allocate a SKU for each batch. For instance, a tomato-flavoured chips packet with the same expiry dates could be tracked together in batches.
3. Scan identifier
Our system has a scan identifier that can identify universally recognized barcodes like EAN and UPC. These barcodes can be linked with the product SKU codes so that further processing can be done using barcodes that have already been printed on the product instead of generating new ones.
4. Handheld device & mobile app support
Our system facilitates scanning via a handheld device or with a mobile app, which you can carry all around the warehouse to pick items or perform cycle count with ease.
5. Channel-wise barcoding
Barcode requirements may vary depending on the sales channel; for instance, Myntra B2B requires the barcode to be printed on each item processed, and Ajio requires the barcode to be printed on each bundle as per their internal workflow. That’s why our system provides this flexibility to generate channel-wise barcodes that align with the channel’s specific requirements.
6. Customization
You can customize barcodes according to your specific operational requirements, for instance, label with expiry date printed for better visibility of the picker.
Step-by-Step Process to Implement Barcode for Inventory Management System
Sellers managing inventory at the SKU level must print labels for every SKU, while sellers managing at the item level are required to print labels for every item. When the seller receives products at the warehouse, labels are pasted on QC-passed items. However, in some cases, the vendor can generate labels via the vendor login panel and paste them on items.
Step 1. Label printing at QC
Labels are printed and pasted at the time of QC, where SKUs are mapped with the barcodes at the backend so that warehouse staff can scan & extract product information at any stage -picking, cycle counting, quality checking at processing.
Step 2. Printer Setup
A special type of printer is required to print labels with a barcode of the required type and size. The following printer models are used in our system –
- Zebra GC420T
- Zebra GT800
- Zebra GT820
- Zebra ZD230
- Zebra ZD420
- TSC TA210
- TSC TTP345
- GX 430T
The sticker size supported is Minimum: 2×1 inch or 50×25 mm, Maximum: 4×2 inch or 100×50 mm.
Step 3. Download the utility file
You need to connect the printer to our system and download a utility file. Enter the details related to the printer settings; you will get a barcode label template. The text in the barcode template needs to be aligned properly. Apply the necessary customization and give the command to print.
Unicommerce facilitates the complete barcoding setup from mapping the SKU to downloading the utility setup, so you don’t need to juggle to implement the process. We also provide on-site support in case you face challenges in setting up the printer.
FAQs
What is a barcode inventory system, and why is it important?
A barcode inventory system is a method of tagging products with barcodes that can be scanned to track stock across the warehouse. It is important because it reduces manual errors, speeds up processes like picking and cycle counting, improves visibility of stock movement, and ensures accurate order fulfillment.
Which industries use barcode inventory management?
Barcode inventory management is widely used in e-commerce, FMCG, cosmetics, electronics, fashion, and pharmaceuticals. These industries handle large and complex inventories, where barcoding helps in expiry tracking, batch management, counterfeit prevention, and efficient returns handling.
What are the steps to implement barcode tracking in warehouses?
The steps to implement barcode tracking in warehouses include:
- Printing barcode labels for SKUs or items.
- Mapping barcodes with products in the inventory management system.
- Using handheld devices or mobile apps to scan and track items.
- Setting up barcode printers and templates for smooth label printing.
- Training warehouse staff to use barcodes during receiving, picking, dispatch, and returns.
What is the difference between SKU-level and item-level barcode tracking?
SKU-level tracking assigns one barcode to a group or batch of items (e.g., 100 red T-shirts = SKU123), while item-level tracking gives each unit a unique code (e.g., every T-shirt gets its own barcode) for deeper traceability.
What do you need to implement a barcode inventory system?
You need barcode labels, a barcode printer, and scanning devices (handheld or mobile app support). Software like Unicommerce integrates the entire process—right from barcode generation to scanning and tracking.
Related read –
- Why do E-commerce Businesses need Inventory Management Software?
- What are the benefits of having Inventory Management Software?
- Why is Inventory Management Important for your E-commerce Business
- FMCG Industry challenges in India
- How does Warehouse Management System Works?
- Logistics vs Supply Chain Management
- E-commerce Apparel Industry: Trends, Challenges, Opportunities & Solutions
- Shipway by Unicommerce – Advanced Logistics Tracking Platform
- UniReco – Automated Reconciliation of Orders, Returns and Payments
- Key Challenges & Benefits of Marketplace Payment Reconciliation
- Benefits of Shipping Notifications