• Barcoding
  • Data Collection
  • Inventory Management

5 Key Benefits of a Barcode Data Collection Software Solution

Written by Robert Brice
May 2, 2014


The risks of operating an organization with a poor data collection system are precarious. In contrast, the benefits associated with operating a strong automated data collection system using barcode data collection software solutions affect and improve performance and financial metrics. The decision to implement an adaptable barcode data collection system can pay huge dividends. The only pre-cursor is to acquire a data collection system that offers and can substantiate the appropriate benefits which can spell out the difference between strategic, long-term success or a continuous erosion of ROI.

1.  Improve Accuracy/Reduce Errors

Miscommunication and inaccurate data are prime catalysts for errors. These errors can be painfully costly to endure and some even have potential consequences that are irreversible. Utilizing pre-printed barcodes and RFID tags in combination with mobile devices that update real-time metrics and software that is written and designed to validate user entry and maintain data integrity ensures that accuracy is being upheld and adhered to as a directive. With accurate information, an organization is in an ideal situation to make informed decisions and confidently commit to vendors, customers, and stakeholders with a minimized potential of erroneous actions.

2.  Increase Productivity

The automation of data collection is an efficient and faster method of performing a variety of routine and, otherwise, time-consuming tasks. The result is a higher productivity level from an empowered workforce that is enabled to effectively perform and complete more work in less time. The presence of this condition immediately affects the overall efficiency of an organization as a whole.

3.  Improve Customer Satisfaction

Customers seek satisfaction by expecting a quality product or service at a reasonable price that can be delivered on time. Automated barcode data collection promotes quality by giving organizations the ability to analyze data in real-time and allowing them to act upon the results, immediately. As accuracy and productivity are increased, errors are reduced amongst various other overhead expenses that attribute to the cost of a product/service. An automated barcode data collection system streamlines processes and reduces the amount of time that is allocated to specific activities. The result is an organization that is lean, agile, and punctual.

4.  Reduce Labor Costs

Labor costs provide for the most common class of savings. As manual tasks become automated, a workforce is able to accomplish higher levels of efficiency and performance; throughput is increased. The result is a higher yield in less time per labor cost dollar. This enables the restructuring of a workforce to further reduce labor costs and reallocate human capital.

5.  Reduce Inventory and Holding Costs

Another common type of savings created by automating the data collection process comes from the reduction of inventory and holding costs. Inventory often includes safety stock. Carrying safety stock is a strategic measure to protect against out-of-stock scenarios. However, high inventory levels equate to proportionately high inventory holding costs. The right automated barcode data collection system provides accurate inventory quantities that are updated in real-time as inventory is received, created and/or shipped. Accurate inventory counts provide for better assessments of safety stock levels and inventory holding costs. A lean and intelligent inventory produces the best results when analyzing the costs associated with holding and maintaining this inventory.

Other Benefits to Implementing an Automated Barcode Data Collection Solution:

In addition to the many benefits of automating the data collection process, here are a few more good reasons:

  • Increased sales
  • Improved overall efficiency
  • Competitive advantage
  • Higher organizational value

An automated data collection system improves accuracy, increases productivity, improves customer satisfaction levels while reducing errors and reducing costs associated with labor and inventory. Learn more including what to look for in a data collection software vendor by downloading our FREE Data Collection Software Buyer’s Guide.