Barcode systems are prevalent in almost all businesses today. Any business that delivers “hard” goods or services can realize the benefits of barcoding for accurate information and increased productivity, results of a well thought out barcode system.
Companies typically justify the purchase of a barcode system by:
- Calculating the cost of errors
- Shipping errors from picking the wrong items; the cost of rectifying such an error runs $35 to $70 per error.
- Data entry errors happen one in every 300 keystrokes, even by a great typist. That means 36% of all orders in the packaged goods industry contain a costly error.
- Determining the savings from increased productivity – typically an increase in productivity by 40% after installing a barcode system. When any organization can “do more with less” the savings fall directly to the bottom line.
Added to these calculated benefits should be the “soft and indirect” benefits of a barcode system. This further impact can improve the cash flow and profitability of a company as much as improved productivity and reduced errors. Soft or indirect benefits include:
- Improved customer service – The cost of attaining new customers is one of the hidden expenses in any company. By tracking the status of jobs in a production plant, eliminating shipping errors and providing immediate information for the sales team barcode systems improve customer service and retention. The results are happy customers who come back again and again.
- Improved employee morale – Companies are often surprised at how a good system can improve employees’ attitudes. When there is accurate information, fewer errors and happy customers, employees feel a relief and are happier with their jobs. The result is less turnover and improved productivity.
- Improved quoting – Companies who quote custom jobs (job shops, construction companies, etc.) will be more accurate in their quoting if they know the exact costs of a similar job. They can use a barcode system to track exact labor hours.
- Increased sales – Better management of inventories and timely, accurate information flow give salespeople the tools they need to close more orders.
Systems that use barcode are affordable and practical for more businesses than ever before. Download the White Paper: Adopting Automated Data Collection for SMBs.