
Page AllAboutBarCodes
Consequently, opportunities to improve operational efciencies and customer responsiveness have developed for retailers,
transportation and package delivery companies, manufacturers, wholesale distributors and service providers
Benets of Bar Coding
Bar code data-collection systems provide enormous benets for just about any business With a bar code data-collection
solution, capturing data is faster and more accurate, costs are lower, mistakes are minimized, and managing inventory is much
easier The following are some of the benets of bar code data entry
Fast and Reliable Data Collection
Faster Data Entry: A bar code scanner typically can record data signicantly faster than a skilled typist
10,000 Times Better Accuracy: Keyboard data entry creates an average of one error in 300 keystrokes
Reduced Costs
Labor Costs: This is the most obvious benet of bar code data collection In many cases, this cost savings pays for the
entire data-collection system However, while this may be the most obvious cost savings benet, it is often overshadowed
by even greater savings from other areas
Reduced Revenue Losses Resulting from Data Collection Errors: This benet often surpasses the savings in labor
costs You know that if you make a signicant error on an invoice in the customer’s favor, the error may not be discovered
However, if the error is in your company’s favor, it will probably be brought to your company’s attention immediately In
most companies, it doesn’t take many errors to amount to a great deal of lost revenue
Necessary Inventory Levels: Using bar codes is one of the best ways to reduce inventory levels and save on capital costs
Keeping a tight handle on inventory can save signicant amounts of money
Improved Management
Better Decision Making:
Although hard to measure, this is an important benet In many cases, improved management due to automated data
collection technology could be the best benet of a bar code system A bar code system can easily gather information that
would be difcult or impossible to gather in other ways This allows managers to make fully informed decisions that can
affect the direction of a department or company
Faster Access to Information: This benet goes hand in hand with better decision making With better information, you
can gain opportunities and get the jump on competition
Examples of How Bar Codes are Used
The following are just a few of the many ways bar codes are being used to improve the protability and efciency of a variety of
company types
Point-of-Sale
Point-of-sale is one of the most common segments of the bar code market Everyone is familiar with the scanners in grocery
and department stores Benets of bar coding in point-of-sale systems include:
Cost Savings: This is the most obvious benet A medium-to-large store can save enough checker time to signicantly
reduce payroll You also save direct labor costs through less time spent taking inventories and ordering product
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