barcodes increase profits

Posted February 17, 2016 / By admin / 0 Comment

How a Barcode Can Increase Profit Margins

It’s no secret that implementing a barcode inventory tracking system increases your organization’s efficiency, but you would be amazed by the cost-saving ripple effect. Using barcodes will speed up daily processes, improve record accuracy, and cut down on paperwork, reducing unnecessary labor. Depending on your company’s structure, you may be eliminating some salaries entirely or putting an employee’s skills to better use in a different area. Here’s three key examples of how barcodes can help you cut costs and boost your bottom line.

Purchase smarter

Has a customer ever placed an order and at the very last minute you realize that you don’t have everything in stock to make the transaction? This not only applies to the finished product, but also raw materials. For example, a mechanic shop may run into a dilemma because they thought they had a certain type of screw in stock, but inventory records were inaccurate. You can drastically cut costs on purchasing inventory by keeping better track of your inventory and ordering smarter. Many barcodes have the ability to share how many of a particular item is left in stock, and you can set up a system to reorder once it hits a certain stock point. This will cut down on expensive emergency re-orders. By operating smarter and having key products on your shelves at all times, your customers will be happier and continue to give you their business. Don’t think customer retention will mean much for your business? A 5 percent increase in customer retention rate can increase your profits between 25 to 100 percent, depending on your industry.

Barcodes will also help you make smarter purchases. As you may know, 80% of your sales come from 20% of your customers. Browse through historical data to see what types of items these people are purchasing. This will help you discover your more popular items that you should keep stocked next to the loading bay, and also items that aren’t performing well. If an item is not performing well, consider discontinuing it in favor of more popular, lucrative items. Remember that the leaner you make your inventory list, the less working capital you’ll have tied up in your stock room.

Makes keeping track of inventory easier

More likely than not, your business is losing money and inventory because of theft. In 2013, shoplifting and employee theft cost American businesses about $27 billion. Implementing barcodes into your inventory tracking system will allow you to discover issues and run a tighter ship. Having a barcode system will give you a better idea of the inventory you have on hand instead of depending on a hand-counts. On occasion, compare a section of inventory to see if it matches with what’s in the database. This will show you what types of items are disappearing. Knowing which types of items go missing will allow you to address the problem of theft better. For example, a retail store may find that Widget X keeps magically disappearing and decide to move the display to a more public area of the store. By decreasing theft rates, you’ll reduce inventory shrinkage and increase your profits.

Prevent costly medical mistakes

In the United States, about 1.5 million Americans are affected by medical errors, about 400,000 of which were preventable. Medical malpractice can take a huge bite out of your organization’s profits. Studies show that in 2012 alone, medical malpractice suits paid out $3.6 billion dollars. Barcoded medication administration (BCMA) is helping healthcare professionals cut down on expensive, and sometimes fatal, medical errors. Before a nurse administers medication to a patient, he or she scans the patient’s bracelet and the barcode on the medication. The system will alert the nurse if there is an error with the patient’s ID or with the medication dosage. According to studies, BCMA reduces errors during drug administration by 54 to 87 percent. By implementing a barcode system, there is less chance of dealing with expensive medical lawsuits.

Looking to increase your bottom line with barcodes? Contact Bar Code Direct today and learn how we can help your business with a custom solution!