QR codes in supply chain management are the best tools for tracking the items and their details, like names, prices, and more. The information in these codes tells you everything about the product or item that needs to be known for processing.
Be it viewing the live status of available stock, transparency, or cutting down human error, QR codes are changing how businesses control logistics.
Let’s see how these work.
Features of QR Codes in Supply Chain Management
The detailed features of QR codes allow you to use them to their full potential in your supply chain:
1. High Storage Capacity
QR codes are best for storing a large dataset of information. These include text, URLs, and data formats. This makes it perfect for complex supply chains.
2. Fast Scanning Speed
You can scan QR codes even in less-than-ideal conditions like at an angle or in bad light conditions. This ensures there is supply chain visibility, transparency, and maximum efficiency in fast-paced environments.
3. Error Connection Capability
QR codes have an error connection. This allows you to scan them accurately even if they are partially damaged or obscured. This ensures reliability in tough environmental spaces.
4. Versatility
QR codes are capable of encoding a wide range of information, from simple product details to intricate logistics data. You can apply these versatile tools to various surfaces such as labels, packaging, and even digital displays.
5. Customizable
You can customize QR codes in supply chain management to fit specific business needs, offering flexibility in size, design, and data type. Companies can customize QR codes to match their branding and meet specific operational needs.
12 Advantages of QR Codes in Supply Chain Management
This technology applies to a vast array of functions in supply chain management. From product tracking to document identification, it streamlines various functions. With it, you can exercise control over the processes without any physical contact.
Here are some of the advantages of using QR codes in your supply chain:
1. Enhanced Traceability
Track products with QR codes. Starting from the point of acquiring raw materials to production to shipping to sorting and delivery, you can track the product in all stages. This allows you to quickly identify any issues or bottlenecks if they arise in the supply chains.
2. Real-Time Inventory Management
QR codes allow you to have real-time supply chain transparency. Update your inventory levels in real-time by scanning. This reduces the risk of stockouts and ensures that you always maintain accurate inventory.
Did you know that QR codes can improve the operational efficiency of inventory management by up to 30%? This reduces human error in inventory tracking. Unlike manual records, you need not worry about mistakes in capturing quantities, product information, and locations. This is because these solutions make it easier to navigate to the correct information in the URL. You can ensure that the data does not get lost or misplaced.
If you integrate the QR codes in supply chain management, then all the staff needs to do is scan them.
For example, if you are regularly dealing with abrupt stockouts because of poor data entry, QR codes can make it easy for warehouse employees to update inventory levels. All they need to do is scan the items on entering and leaving the warehouse. This will automatically update the entries.
3. Efficient Data Collection
QR codes simplify the process of collecting and assessing product information. This reduces the associated risk of errors due to manual data entry.
If you integrate the QR codes in supply chain management, then all the staff needs to do is scan them. With that, they can navigate to the relevant entry in your software, updating the information.
For example, if you are regularly dealing with abrupt stockouts because of poor data entry, QR codes can make it easy for warehouse employees to update inventory levels.
All they need to do is scan the items on entering and leaving the warehouse. This will automatically update the entries so you know how many products you have at any given time.
4. Cost-Effective Implementation
QR codes are inexpensive to make. You can easily integrate them into your existing supply chains.
5. Better Customer Engagement
When you have QR codes, customers can scan them to know information about product origin, authenticity, and other details. This allows them to interact with the brand, creating transparency and building trust.
6. Enhanced Supply Chain Visibility
Visibility is crucial for supply chain management as it helps businesses identify bottlenecks, reducing lead times. However, tracking products manually through the supply chain can be challenging.
That is where QR codes in supply chain management come in. These pixelated solutions help you to visualize the location of your products. For example, say you have warehouses in Mumbai and Delhi. As your warehouse staff scans the QR codes on the packaging, they can update the relevant entries in your supply management software.
So, when you open product entry, you can see the last update from your warehouse stuff. This information helps you to see how far the products have moved in the supply chain and can also help you determine the time in which they will reach the destination or any inefficiencies.
7. Better Logistics and Transportation
QR codes streamline logistics processes as they make it easy for businesses to have access to important data across all stages. For instance, when you are receiving products, you can quickly verify if the items you receive match your order.
Also, when you are packing and delivering products, you can ensure that the right ones go into the right boxes. Just scan the QR code for product tracking to access the product details. This can reduce the risk of making any errors, allowing your transportation team to get on the road quicker.
8. Dynamic Information
You can access and maintain detailed information about every piece of inventory. For equipment, the QR code will automatically connect to a website or database with information when it comes to maintenance and use.
9. Increased Speed and Accuracy
Increase your inventory speed through a simple accounting process with the help of QR codes in supply chain management. QR codes are better than UPC ones, as the scanner can read them even if they are partially damaged.
This eliminates any mistakes during the manual entry of a damaged code. It also excludes miscounts that can happen due to multiple counts.
10. Cost Savings and Efficiency
Proper inventory management, better logistics supply chain visibility, and transportation all result in efficiency and lower costs. With proper inventory management, you can minimise the risk of missing out on potential sales.
Properly managing inventory ensures no stockouts, enhanced supply chain viability, and also helps you to identify bottlenecks. This lowers operational expenses and ensures better transportation and logistics, allowing your team to quickly deliver products.
11. Better Data Collection and Analysis
QR codes facilitate better data collection as they make it easy for different people in the supply chain to provide information. You just need to link them to data forms that collect the details like the name of the product, check-in date, and check-out date.
In this way, your staff or customers can quickly scan the codes to fill out the forms, sending the information to your database. Data analysis in supply chain operations is important as it shows you what you need to improve.
Let’s see the last benefit of QR codes in supply chain management.
12. Preventing Losses and Counterfeiting
Use QR codes to prevent counterfeiting to prevent potential losses that can arise due to counterfeited articles that the client business can receive. This not only damages your reputation but also hampers customer loyalty. Specific QR code technology helps to identify fake articles, preventing them from happening in the future as well.
FAQs: Role of QR Codes in Supply Chain Management
What technology is used in QR codes?
QR codes use 2D matrix barcode technology, designed to store more data than 1D barcodes and be quickly scanned using devices like smartphones.
Are QR codes for all types of products?
Yes, QR codes are versatile and customisable.
What technology do QR codes use?
You need a QR code generator, scanning devices (e.g., smartphones or QR scanners), and integration with supply chain management software.
Conclusion
QR codes in supply chain management are enhancing transparency, accuracy, and efficiency. From real-time inventory tracking to streamlined logistics, they simplify complex processes while reducing costs and errors.
Give your supply chain the QR code benefit with Qodenext.
