For the manager, it is important to make the most of all possible strategies to optimize its management, especially the measures related to inventory control. One of these strategies is material coding. Encoding is a feature used thousands of years ago to facilitate communication between people and the identification of items.
See some benefits of encoding materials for efficient stock!!
- Achieving an important standardization
One of the most important benefits is the standardization of inventory items. The purpose of coding is to facilitate the identification of stored items, so it establishes a pattern of recognition, adopting a certain system.
The company can choose alphabetical coding (in which the materials are represented by letters of the alphabet) or alphanumeric coding (where identification is given by means of the combination of letters and numbers).
There is also the numerical coding, also called Numeric or Decimal System, considered very practical, adopting the use of Roman numerals (which are, in fact, capital letters of our Latin alphabet). This standardization follows, as a rule, the SFC (Federal System of Classification of Supplies).
Another system is the Bar Code of EAN Brazil (Brazilian Association of Commercial Automation), very effective, presenting speed and precision in the exchange of information and ensuring greater quality in the movement and productivity of the inventory control.
- Avoiding duplicity of items
Another common mistake in stock control is the duplicity of items in the count, which causes problems, especially at the time of inventory. By “baptizing” each product with a code, you can individualize it, make it unique and different from any other item.
The consequences on the duplication of materials are diverse, among them, to increase the real value of the stock and to leave missing important products in the stock.
- Facilitating input and output of materials
Another benefit of coding is that it makes item entry and exit control more accurate and secure, helping to prevent theft, diversion, and other unscheduled forms of exit. Each coded product can only enter and exit once, and this also helps reduce errors in the shipment of goods to the customer.
The movement of inventory items gains greater agility with the coding, contributing to reduce the time to convert the working capital immobilized into revenue, that is, it helps to increase the level of liquidity of the products.
- Improving communication with the customer
The coding also allows the communication between company and client to be optimized, since there is a special language used by both parties to identify the products.
To better understand, imagine the difficulty of communication when people communicate in different languages. When all items are coded, it is easier for the company to identify errors and correct them quickly, and the customer can improve the choice, purchase and receipt of their merchandise, avoiding conflicts and unnecessary costs.
The possibilities of return and exchange are greatly reduced.
- Providing technological integration
The use of coding is a way to take better advantage of technological resources, such as radio wave tracking and participation in Electronic Document Interchange (EDI).
EDI consists of exchanging documents and information between companies through IT systems, thus reducing bureaucracy, quantity of paper and costs – it is an automation of business processes.
Have you coded the materials in your inventory? For more information on efficient inventory management, be sure to read “5 best practices for efficient inventory management”!
ORBIT Logistics is one of the world’s leading suppliers of inventory management solutions (VMI – Vendor Managed Inventory and SCM) and real-time data acquisition.
Our company, founded in 2003, provides a modular system for supply chain management and automation, serving global customers from offices in Leverkusen (Germany), Atlanta (USA), Sao Paulo (Brazil) and Shanghai (China). A highly qualified team of more than 40 engineers and technicians offers customized turnkey solutions for process management and monitoring.
For more information:
Phone: (55 11) 3796-1755 / 1756
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