Supply Chain Glossary

This supply chain glossary terms provides detailed explanations through our mini blogs. Continue reading to increase your vocabulary and gain insight into the supply chain visibility with these terms!

Barcode Scanning

Last updated: June 3, 2025
Logistics Supply Chain
B

Barcode scanning is the process of using barcode technology to automate inventory management across the supply chain. A barcode, typically a series of black and white lines or a QR code, stores product-related information. When scanned using handheld or fixed scanners, this data is instantly retrieved and recorded in inventory systems. Barcode scanning reduces manual entry, increases accuracy, and streamlines warehouse and logistics operations.

How Barcode Scanning Works

Each product or inventory unit is labeled with a unique barcode that contains details such as SKU, batch number, and storage location. As goods move through various stages, receiving, picking, packing, shipping, or returns, barcode scanners capture and transmit the data to a warehouse or inventory management systems. This real-time data updates stock levels, tracks product movements, and ensures accurate records throughout the logistics lifecycle.

Key Features of Barcode Scanning

Fast Data Capture


Barcode scanners read data in seconds, allowing quick and error-free logging of inventory movements during receiving, storing, or shipping.

Integration with Systems


Barcode scanning tools integrate easily with Warehouse Management Systems (WMS), ERP platforms, and mobile apps for end-to-end visibility.

Versatile Use Cases


Barcodes can be applied to products, bins, pallets, or documents, supporting a wide range of logistics and inventory tracking needs.

Benefits of Barcode Scanning

Higher Accuracy


By reducing manual data entry, barcode scanning minimizes human errors in inventory tracking and improves record-keeping precision.

Faster Operations


Automated data capture speeds up warehouse tasks like stock counting, order fulfillment, and returns processing, increasing throughput.

Real-Time Inventory Visibility


Scanned data is updated in real time, helping teams monitor stock levels, avoid stockouts or overstocking, and make timely Refill decisions.

Conclusion

Barcode scanning is a reliable and cost-effective technology that enhances inventory management across the supply chain. It improves speed, accuracy, and visibility, enabling logistics teams to operate more efficiently while maintaining data integrity. Adopting barcode scanning is a critical step toward smarter, more automated supply chain operations.