Inventory mistakes worldwide cost businesses $1.1 trillion every year. These losses stem from issues like tracking failures, overstocking, understocking, and shipping delays.
Outdated systems like manual tracking and 1D barcodes, just add to the problem. They are prone to errors, store limited data, and need perfect scan angles. The good news is these costly mistakes are easy to fix.
How? Switching to QR codes for inventory management.
QR Codes offer real-time inventory tracking and are a smarter, faster, and cheaper way to track inventory. In fact, by 2027 most industries are expected to move away from barcodes and switch to QR Codes.
This article will show you why and how to upgrade your system for efficient inventory management using QR codes.
Why the shift towards QR Codes for inventory management
In 1994, Masahiro Hara invented QR Codes to solve two limitations that traditional UPC barcodes had:
- They can only store up to 20-40 numeric characters of information
- They can only be scanned from one side
These limitations made the work of retail workers way harder than it needs to be.
QR Codes do the same thing as barcodes but MUCH better. Here’s how.
- They store more information: QR Codes can store up to 7,089 numeric characters. But more than numbers, they can also store text, numbers, URLs, and even links to product details or stock updates.
- Scans from any angle: With barcodes, you must line them up just right to scan. QR Codes work from any direction, making scanning much quicker and easier. Moreover, QR Codes have error correction mechanisms, which enable scannability even when there is slight damage.
- Works with any device: QR Codes can be scanned using smartphones, tablets (and even traditional barcode scanners). This makes them incredibly accessible and cost-effective.
- User-friendly and flexible: QR Codes can be printed on product labels, shelves, boxes, and even digital screens. They fit seamlessly into different inventory systems without hassle.
All in all, they are the perfect solution for you to save time, reduce errors, and make inventory tracking much easier.
Key steps in inventory management and how QR Codes help
1. Real-time inventory tracking
Keeping track of stock in real-time is super important. With QR Codes, you can scan an item and instantly see where it is right on your desktop. The data can also be captured in a centralized inventory management system. This ensures you can always access and stay up-to-date on all your inventory.
Unilever has taken a remarkable step in this direction. They use QR Codes to solve their inventory tracking issues.
Earlier, they used barcodes which tracked products only at their supply chain points. However, because they had multiple distributors competing to get their products into stores, it caused conflicts within their channel network.
After switching to QR Codes, each distributor got their own unique QR Code. So the supervisors know exactly which distributor brought the product.
2. Streamline stock organization and categorization
QR Codes make it easy to organize and categorize inventory based on product type, batch number, or storage location. You can encode the QR Code with details like product name, SKU or part number, location in the warehouse, and more. With just a scan, you can get quick access to the item’s information.
Moreover, with QR Codes you can create a perpetual inventory system. What that means is, with just a scan you can update your inventory and stock information in real time. This significantly reduces manual errors + alerts you of any stockouts or overstocking.
3. Process orders faster
QR Codes help businesses pick, pack, and ship orders more accurately and efficiently. They reduce errors, ensuring customers receive the right products. One of the best features of QR Codes is the error correction level. That means, even if your QR Codes are damaged or missing, it can retrieve the information and ensure your product arrives on time.
Workers can easily scan QR Codes (with their own device, too) to confirm order accuracy before shipping. Fewer mistakes also mean fewer costly returns and happier customers.
4. Optimize warehouse organization
QR Codes can streamline warehouse management by automating inventory updates, tracking stock levels, and even triggering reorders when supplies run low.
QR Codes also go beyond tracking your inventory, they are also incredibly useful in tracking equipment in your warehouse. You can set notifications to alert you if any equipment requires maintenance. With a quick scan, you reduce downtime significantly.
How to set up QR Code for inventory management
Let’s break down how to set up a QR Code tracking mechanism for inventory management in more detail:
1. Evaluate your current system and inventory needs
Don’t just look at what you track, but how. From the time you receive goods till shipping, map out your inventory workflow. Here, you can identify bottlenecks, pain points, and areas where data is lacking. You can use the following infographic to get a better understanding:
2. Choose a QR Code generator and scanner
Choosing the right QR Code generator that suits your needs is paramount. These are some of the features that you should consider:
- Bulk Generation: This is essential for creating numerous QR Codes quickly. Consider CSV upload options as well.
- Customization: Control over size, format (PNG, JPG, SVG), branding, and more.
- Dynamic QR Codes: These allow you to change the data linked to the QR Code after it’s printed. This is useful for updating information like price or quantity without reprinting labels.
- Data Analytics: Some generators offer basic inventory tracking features, which might be sufficient for small businesses.
- API Integration: This is more relevant to larger businesses. If you have existing inventory software, an API allows seamless data transfer between the QR Code generator and your system.
3. Label everything with QR Codes
Assign a unique QR Code to each item in your inventory. Print high-quality labels and attach them to products, shelves, bins, and packaging to ensure easy scanning. You can also add QR Codes to your machinery to track its use.
Additionally, you can affix your GS1 digitally linked QR Code label on your product packaging. This allows you to provide your unique product data (GTIN) across the supply chain and your customers.
GS1 QR Code also lets you create a microsite to add information relevant to wholesalers and consumers. Mildura Fruit Company added this QR Code label on their citrus packaging to provide comprehensive product information. This helped build trust with their supply chain and customers across 30 countries.
4. Integrate with an inventory system
If you don’t already have inventory management software, choose one that supports QR Code integration. Ensure that your QR Code system is linked with your inventory management software so that each scan automatically updates stock levels.
Set up alerts and notifications for low-stock warnings, expiration dates, and reordering.
5. Testing and implementation
Before you fully implement the system, conduct a pilot program with a limited number of products. This will let you identify and address any issues before they impact your entire operation.
With these steps, you can set up your QR Code inventory management system with ease. Now, let’s look at some of the tools you can consider for inventory management using QR codes.
Best tools and software for QR Code inventory management
There are two aspects of selecting the software for inventory management.
- Choose the one that allows you to generate QR codes while also tracking inventory.
- Or, go for the one that supports QR codes for inventory tracking.
We have shortlisted Ezo and Sorty as the best inventory management software that supports QR code tracking. Below are the details.
Ezo
Ezo is a powerful inventory management tool, which makes it a strong choice for large enterprises with complex needs. Users appreciate Ezo for:
- Real-time visibility into movements of stock with QR Codes
- Links QR Codes to product information, locations, and other relevant data.
- Optimized inventory and warehouse management + mobile friendly
- Intelligent reporting and insights help reduce costs over time.
- Design and print custom QR Code labels in bulk
However, users wished for more intuitive reporting and analytics. The customizations in reports generated are very limited. Moreover, due to its comprehensive features, the tool has a steep learning curve.
💰Pricing
Ezo has different pricing plans based on the number of items you want to track. The following are based on 250 items:
- Essential Plan: $40 per month
- Advanced Plan: $55 per month
- Premium Plan: $65 per month
- Enterprise Plan: Custom Pricing
Sortly
Sortly is a visually-driven inventory management platform that makes it easy to track items using photos and detailed descriptions. It is a good fit for mid-sized businesses looking for a user-friendly solution. It’s capabilities include:
- Allows adding or editing existing QR Codes to add items to the system
- Generates custom QR Codes for detailed item information.
- Flexibility to track from various devices + very intuitive UI
- Real-time inventory reporting with easy collaboration
Some users report that Sortly has limited integrations with other platforms. They have also pointed out that it lacks in terms of advanced features.
💰Pricing
Sortly has a range of pricing plans based on the number of unique items it will let you track:
- Free Plan: $0 per month (100 unique items)
- Advanced Plan: $24 per month (500 unique items)
- Ultra Plan: $74 per month (2000 unique items)
- Premium Plan: $149 per month (5000 unique items)
- Enterprise Plan: Custom Pricing
If you’re already using an inventory management system that allows QR tracking but looking for software to generate QR codes in bulk, we’d recommend The QR Code Generator.
The QR Code Generator
For small businesses and startups with limited budgets, tools like The QR Code Generator can be a cost-effective starting point. While they may not offer full-fledged inventory management capabilities, they provide the foundation for basic QR tracking. Some of the key features of this platform are:
- Lets you create free, custom QR Codes for tracking inventory.
- User-friendly interface with customizable QR Code creation.
- It can be used to link to spreadsheets or other basic tracking systems.
- Provides features like GPS location tracking and multi-user access
However, the platform has limited functionality compared to dedicated inventory management tools. Nevertheless, it is a good alternative to start off with.
💰Pricing
- Essential Plan: $5 per month
- Advanced Plan: $12.5 per month
- Professional Plan: $37.5 per month
The future of inventory management with QR Codes
The shift towards QR Code inventory management is more than just a trend—it’s a fundamental change in how businesses operate. The limitations of traditional barcodes are coupled with the increasing complexity of modern supply chains. QR Code is a great addition to streamline inventory management.
Whether you are a small business looking for an easy way to organize stock or a large enterprise needing full automation, QR Codes provide the flexibility, accuracy, and convenience modern businesses demand. The future of inventory management is fast, smart, and powered by QR Codes. If you haven’t made the switch yet, now is the perfect time!
