A New Era for GS1 QR code for Tracking Components and Finished Goods
Untracked inventory can disrupt production and supply chains, potentially lose sales, delay deliveries, and waste resources. Even then, at least 43% of companies in the US either don't track their inventory at all or use a manual process to do so.
However, in this digital era, it’s not that difficult to get detailed product information and transparency, particularly when we have advanced ways to access information. Yes, we’re talking about GS1 QR codes for tracking components and finished goods.
These barcodes can be packed with all the essential information, including batch numbers, use-by dates, and much more. That means you can use the GS1 QR code to track components and finished goods.
But how do these codes work for inventory management, and how are they beneficial for tracking? Let’s dive in and take a look.
Table of Contents
- Tracking Components and Finished Goods: The Core of Inventory Management
- Current Challenges of Tracking Components and Finished Goods
- GS1 QR Code for Tracking Components and Finished Goods
- What is the GS1 QR Code?
- GS1 QR Code for Tracking Components and Finished Goods: How it Works
- The Benefits of Using GS1 QR Code for Tracking Components and Finished Goods
- Conclusion
Tracking Components and Finished Goods: The Core of Inventory Management
When we talk about tracking components and finished goods, we’re basically referring to inventory management. This is the process through which companies track their stock levels and the movement of goods.
As a part of the supply chain, it helps you keep a check on your existing stock, manage warehouses and avoid mistakes like wrong shipments, delays and stockouts.
An inventory is usually divided into three categories: components, work in process, and finished goods.
Components
Components are the primary raw materials a business uses to make finished products. These components have two basic types: direct and indirect. Direct components are a part of the finished product, while indirect components are used in the manufacturing process.
For example, a textile processing unit will use fibers, yarns, dyes and chemicals as their primary components and water, lubricants, and packaging materials as secondary components.
Tracking raw materials and components is extremely important for a business as it is the major driving force behind development and organizes smooth business operations.
Work in Progress
Work in progress (WIP) are the unfinished materials and products in the manufacturing process. Once a component goes through modification like cutting, dyeing or assembly, it turns into WIP material.
Making WIP a part of inventory depends upon the production cycle of a business. Businesses with a smooth production process, like automotive or electronics, don't need to intensively track their WIP inventory.
Finished Goods
Finished goods are ready to sell products for customers in warehouses, distribution centers and retail stores. It’s best to sell them as soon as possible to generate profit, earn revenue and minimize the cost of inventory management.
Current Challenges of Tracking Components and Finished Goods
Tracking components and finished goods are the most essential aspects of running a successful business. Carrying too much or too little stock can disturb the capital and operational efficiency of your business.
Businesses use different methods such as stockbooks, logbooks, Google Sheets, or cloud-based software to keep track of their inventory. While these methods are helpful for small-scale businesses, they often come with challenges like lack of real-time tracking, accuracy and scalability.
Lack of Real-Time Tracking
As a business owner, you should always know the real-time status of raw materials and finished goods. A lot of businesses are still using manual tracking systems including different software, paperwork and spreadsheets. It takes a lot of time and there are always chances of errors.
Poor inventory management can lead to delays in deliveries, affecting your business reputation. A survey by Peoplevox found that 34% of businesses shipped an order late because they sold a product which was not in stock.
Limited Visibility
Manual paperwork and documentation can reduce the visibility of your stock and its locations, creating delays. Without real-time data, identifying the actual quantity of a product and its location can become extremely challenging. This lack of visibility can impact the entire supply chain, from receiving and storing to packaging and shipping.
Loss and Theft
Tracking of raw components and finished goods is essential for a secure supply chain process. According to reports, retail theft alone costs some businesses $112 billion per year.
A robust traceability system indicates the exact location of an item, monitors its movements and detects any damage or spoilage. This increases security, reduces financial losses and maintains product integrity throughout the process.
GS1 QR Code for Tracking Components and Finished Goods
Modern manufacturing and logistics systems are more complex than they were in the past. To track stocks, maintain transparency and improve the supply chain, businesses need a comprehensive solution. This highlights the need for a solution like the GS1 QR code for tracking components and finished goods.
What is the GS1 QR Code?
The GS1 QR Code is a standard type of QR code developed by GS1, which is actually a global organization that sets international standards for barcode management.
The GS1 digital link QR code can store and display accurate information about different products. The GS1 QR code can scan components and finished goods throughout the supply chain. With real-time tracking, you can maintain quality control, verify authenticity, and manage recalls. Overall, it’s a reliable tool for inventory management.
Here's everything you can access through a simple GS1 QR scan:
- Brand and product information
- Traceability
- Authentication
- Inventory management
- Price information
- Certifications of compliance-related data
- Returns management
- Offers & promotions
GS1 QR Code for Tracking Components and Finished Goods: How it Works
GS1 offers different types of barcodes and QR codes for effective inventory tracking. These QR codes can track and provide real-time data and information about your inventory and supply chain. Here are the most commonly used GS1 QR codes for tracking components and finished goods.
GS1 Barcode
GS1 Barcodes are symbols with 14 numeric digits printed at the bottom. These digits represent the unique Global Trade Identification Number (GTIN) of a company. Upon scanning, these barcodes can identify the product name, shipment number, location or batch number. These barcodes help retailers, manufacturers or transporters to track and monitor goods movement.
GS1 2D Barcode
One step ahead of barcodes, these are 2D QR codes powered by GS1. These 2D QR Codes are usually square or rectangular patterns that can encode huge amounts of data. They are easily scannable through smartphones and connect people with a wealth of relevant data such as:
- Detailed product information
- Price information
- Inventory levels
- Supply chain information
- Customer Information
- Customizable data
The Benefits of Using GS1 QR Code for Tracking Components and Finished Goods
Real-Time Tracking
GS1 barcodes for retail offer 24/7 visibility to warehouses and inventory. A business can instantly track its raw material quantities for informed procurement decisions. For example, a manufacturing plant can monitor its steel stock levels in real-time and place a purchase order when the supply reduces.
Similarly, QR codes on finished products provide up-to-date information on stock status, preventing overstocking or shortages. Retailers can accurately access popular product demand and avoid lost sales due to out-of-stock items.
Minimizing Human Errors
GS1 QR code for manufacturing eliminates manual data entry and reduces human errors.
When you scan GS1 2D barcodes on your smartphone or tablet, you can get instant access to accurate and up-to-date information regarding the raw materials and finished goods.
This precision eliminates the risk of human mistakes in data collection and transfer, increasing the reliability and efficiency of inventory management.
Product Safety and Traceability
The QR code tracking system offers exceptional product safety and traceability. By assigning QR codes to both raw materials and finished goods, businesses can precisely monitor their journey from origin to the end user.
Consider the automotive sector. By assigning unique codes to components like engines, transmissions and electronic systems, manufacturers can track their origin, production date and any need for modifications. This information is essential for identifying any defects, conducting recalls and improving the overall quality of the vehicle.
Workflow Tracking
GS1 QR codes for tracking components and finished goods streamline workflow by providing real-time data. In logistics, GS1 product identification QR codes on pallets accelerate the loading process by verifying item quantities and destinations. During shipping, scanned codes track product movement and location.
Staff working in warehouses can use QR codes on shelves for picking, packing and processing. For example, warehouse staff can scan the QR code to verify the accuracy of the product to avoid any mistakes and increase the delivery process.
Faster order processing and Delivery
QR code scanning speeds up the order fulfillment process by providing accurate information about the quantity and location of a product. Then, warehouse staff can swiftly locate and pick up items without any errors or delays.
For example, a grocery store can efficiently process online orders by scanning QR codes to ensure that the correct items are packed. This precision improves order completion, reduces shipping time and enhances customer satisfaction.
Conclusion
Tracking components and goods is an essential part of inventory management. Existing traditional methods often struggle with challenges like real-time data, accuracy and product security.
GS1 QR codes for tracking components and finished goods are a great solution. By providing instant access to product information, location and history, these codes organize business operations, eliminating all sorts of human errors.
From manufacturing to retail, GS1 QR codes enhance visibility, prevent stockouts and ensure product safety. If you’re a business owner seeking innovative inventory management solutions, consider QR TIGER. It’s a dynamic GS1 QR code generator that can transform your business operations with accuracy, efficiency and profitability.
DISCLAIMER: We acknowledge that GS1, as well as the materials, proprietary items, and all related patents, copyright, trademark, and other intellectual property (collectively, “intellectual property”) relating to its use, are the property of GS1 Global, and that our use of the same shall be in accordance with the conditions provided by GS1 Global.
