Barcode systems track items by printing and attaching machine readable labels (a barcode) to the items. A unique identification number is assigned to each item being tracked and is recorded on the barcode label. Details of the items are maintained in a computer using an information management system. When a labelled item is shipped, moved, disposed of, or modified the item’s bar code is scanned and the information is updated in the software tracking system. This provides high visibility of all items and includes reporting functions for analysis.

Barcode hardware consists of physical scanners that are used to read the barcodes and printers that produce the barcode labels. Using barcode technology, real time information can be viewed about any given item’s status using a handheld device or on a computer. This means that a business can provide the workflow status of any given item: whether it has been picked, packaged or shipped, for example. Barcodes can also be integrated into the order fulfilment process by integrating sales order details and invoicing for example.

An inventory system that uses barcode tracking technology provides the following advantages:

• Updating and Inventory – to conduct an inventory all barcoded items are scanned and details updated in the computer system and reconciled.

• Receiving – whenever a new item is added to the system it is assigned a barcode ID and all relevant details are entered in the system.

• Disposal – when an item is consumed or otherwise moves from a site its barcode is marked as deleted.

• Location and Tracking – barcodes can include information about and item’s location allowing it to be tracked through work or fulfillment processes.

• Checkout – barcoded items (such as equipment) can be checked out to specific users and can record reason for use and expected time of return.

• Automated Ordering and Purchasing – by tracking items that are consumed quickly, a barcoding system can be used to automatically reorder stock.

• Distribution and Shipping – barcode systems can track inventory, its shipping details and other related details.

• Compliance – some materials, such as hazardous items must be tracked constantly to meet legal and regulatory requirements.

• Batch Control – in certain industries, such as food and pharmaceuticals, manufacturer’s must have the ability to identify specific batches of items and their progress through the manufacturing process and eventual delivery to a customer for safety and product recall. Barcode tracking provides an efficient means of tracking these items.