Companies are in a never-ending race to optimize their processes. Many have already realized that material coding It is one of the easiest ways to organize your inventory well. Therefore, it has a positive impact on all activities in the logistics operation.
However, there are still managers who do not understand this concept and how it can be beneficial. With this in mind, Bertolini has developed this article with all the information you need to understand why material coding is gaining more and more followers.
What is material coding?
As the name suggests, coding goods means assign a code to a product. This can be done through a decimal system, with letters of the alphabet, barcodes or RFID — as we will see below.
The purpose of material coding is to uniquely identify the product, since there cannot be two different goods with the same code. This “identifier” is generated by the WMS system, which also monitors the item’s movements.
What are the benefits of coding goods?
Adopting material coding brings a series of benefits to logistics operations. The most obvious is that this practice helps you control inventory and locate items quickly. This allows for real-time inventory control and deeper knowledge of the business.
With the WMS monitoring, the manager knows when it is time to replenish products. Over time, this data generates valuable information that helps in making sales forecasts and decision-making.
Another advantage of material coding can be seen in the order preparation. This is one of the areas that requires the most time and resources to avoid mistakes. Having control over the items makes the process faster, avoiding losses and errors in any operation.
5 ways to code goods
There are several ways to code goods. However, the most common are:
Decimal system: Known as a numerical system or numerical coding, this form is widely used because it is simple.
Alphabetical: This form of material coding uses letters of the alphabet to represent items.
Alphanumeric: A method widely used in automotive parts and vehicle plates. It consists of a combination of letters and numbers.
Barcode: Without a doubt, this is one of the most widely used technologies in warehouses and in various types of businesses. The codes are generated randomly by the system and allow for good inventory control.
Radio frequency: Also known as RFID, this technology uses radio waves that are transmitted by RFID readers. It is an “evolution” of the barcode and does not require direct visual field with the item, allowing reading to be done in large volumes.
Adopt the material coding It is a first step towards facilitating inventory management. This is a constant challenge for companies, which need to optimize the process to ensure a competitive edge.
Another very common challenge is ensuring a good delivery to your customers. at these times, those familiar with the Order Cycle Time formula are one step ahead, so Click here and learn more about this metric.
