Is there anything worse for a logistics manager than not knowing where your shipments are or having to field calls from customers about product delays? We think not! Efficient supply chain management is non-negotiable for modern businesses.
However, traditional supply chain tracking methods (like manual data entry or the use of barcodes) no longer cut it—they’re prone to errors, time-consuming, and only offer limited traceability.
Quick Response (QR) Codes can help. These seemingly simple innovations have been facilitating seamless supply chain management for decades, and they continue to do so even now.
Here, we look at the role of QR Codes in inventory tracking and the overall supply chain process.
What is a QR Code management system?
A QR Code management system is a solution that lets you create, track, and manage QR Codes used on your products. Think of it as your eyes, as it shows you how products move from one stakeholder to the next throughout the supply chain.
It’s important to note that QR Codes can’t do these things on their own. But with the support of a more robust supply chain management system that QR Codes can link to via URL, QR Codes can add a lot to the process. So, for the purposes of this blog post, we’ll consider any supply chain management system enhanced by QR Codes a “QR Code management system.”
A QR Code management system has a few main components:
- QR Code generator to help you create and track QR Codes
- Inventory management or warehouse management tool (or a spreadsheet) that you can link to with a URL
These can provide a visual of your product levels, and dedicated mobile apps or QR Code scanners to scan Quick Response Codes and update your system in real time. As you can see, each component plays a key role in showcasing products’ movements in the supply chain.
Can QR Codes improve the efficiency of supply chain tracking and traceability?
Traditional tracking isn’t always the most efficient. Methods like manual data entry are prone to human errors, which can cause inefficiencies in the supply chain. Even the more developed solutions, like barcodes, don’t meet the demands of modern businesses. They’re slow, carry little information, and offer limited visibility into the supply chain, which can cause delays and impact how quickly manufacturers meet the needs of their customers.
These are some of the reasons why Denso Wave employee Masahiro Hara came up with the idea of QR Codes in 1994. He realized that he could streamline the company’s asset management by developing something that was quicker to scan and had more storage capabilities—the Quick Response Code.
QR Codes can increase operational efficiency by addressing the major challenges traditional supply chain tracking poses. With these solutions, you never have to worry about limited product information or data entry errors, as you can easily navigate to the correct location via URL. When your warehouse teams are able to update software entries more efficiently, you can speed up the tracking process and identify bottlenecks in your supply chain.
The advantages of using QR Codes in supply chain operations
If you already have a system that’s working for you, it’s normal to wonder whether changing things up is worthwhile. However, if there’s one thing you can take to the bank, it’s that incorporating QR Codes into your supply chain operations is one of the best decisions you can make. Here’s why:
Improved inventory management
QR Codes can improve the operational efficiency of inventory management by up to 30%, partially because they reduce human error in inventory tracking. Unlike with manual records, you don’t have to worry about mistakes in capturing product information, quantities, and locations. That’s because these solutions can make it much easier to navigate directly to the correct information via URL, meaning that data doesn’t get lost or transferred incorrectly.
If your codes are integrated into your inventory management software, all your staff needs to do is scan them to navigate to the relevant entry in your software and update the information.
For example, if you’re constantly dealing with abrupt stockouts due to poor data entry, QR Codes can help by making it easy for warehouse employees to update inventory levels. All they need to do is scan items as they enter and leave your warehouse and update the entries, so you know how many products you have at any given time.
Enhanced supply chain visibility
Visibility is vital to efficient supply chain management, as it helps businesses identify bottlenecks and reduce lead times. However, tracking and tracing products manually throughout the supply chain can be challenging.
That’s where QR Codes are so useful.
These nifty pixelated solutions can help visualize where your products are. For instance, say you have warehouses in New York and Los Angeles. As warehouse staff scans the QR Codes on the packaging, they update the relevant entries in your supply chain management software.
At any time, you can open the product entry in your software and see the last update from warehouse staff. This information can show you how products move from the moment they leave your warehouses to when they reach customers and help you identify possible inefficiencies.
Better logistics and transportation
QR Codes streamline logistics processes by making it easy for businesses and individuals to access pertinent data at every stage. For example, when receiving products, you can quickly verify whether the items you receive match your order by scanning designated QR Codes and referencing the entry in your supply chain management software or spreadsheet.
Also, when packing and delivering products, you can ensure the right ones are packed and picked up by scanning QR Codes to access product details. This can limit the risk of making errors and allow your transportation team to get on the road quicker.
Cost savings and efficiency
Proper inventory management, supply chain visibility, and better logistics and transportation all translate to efficiency and lower costs. Proper inventory management minimizes the risk of missing out on potential sales because of stockouts; supply chain visibility helps you identify bottlenecks to lower operational expenses; and better logistics and transportation allow your team to deliver products quickly.
Improved data collection and analysis
QR Codes facilitate better data collection by making it easier for different people in the supply chain to provide information. You just need to link them to data forms that collect details like product name, check-in date, and check-out date. This way, your staff or customers can quickly scan the codes to fill out the forms and send the information to your database.
Data analysis in supply chain operations is vital as it shows you what you need to improve. For example, if your form collects check-in dates, you can determine how long it takes products to reach different warehouses and continually optimize your logistics to offer faster deliveries.
How are QR Codes better for supply chain logistics than traditional barcodes?
Traditional barcodes have been on the market since 1967, when the railroad system tried to use them to identify rail cars. However, despite undergoing some improvements since then, they’re unable to meet the needs of modern businesses—they don’t carry a lot of data and have scanning limitations. As such, many enterprises are replacing them with QR Codes.
Here’s an in-depth look at why QR Codes are better for supply chain logistics:
Greater data capacity
One reason you’ll find QR Codes in the consumer packaged goods (CPG) industry is their larger storage capacity. QR Codes typically hold more information than barcodes, meaning businesses can share more.
QR Codes can hold up to 4296 alphanumeric characters, 1817 Kanji characters, 7089 numeric characters, or 2953 bytes of data, while traditional barcodes can only store two to 30 characters, depending on the type of code.
Faster scanning and processing
QR Codes are also a better alternative to traditional barcodes because they’re quicker and easier to scan. Since they’re omnidirectional, you can scan them from any angle without difficulty. This means speedier product scanning throughout the supply chain, which can promote operational efficiency.
On the other hand, traditional barcodes require specific angles to scan effectively—you must align your scanner and the barcode horizontally. This can be restrictive in busy environments and slow down your processes.
Better security features
QR Codes are more secure than barcodes since you can encrypt the linked information. This means only people with decryption keys can access sensitive information.
Additionally, QR Codes carry more data, which means you can encode complex information—like authentication codes—to enhance product security.
Why is this important in the supply chain? Well, a greater level of security can help prevent counterfeiting. It can also help you make sure that only authorized individuals have access to confidential information, like logistics data, if handling high-value items.
Examples of QR Code applications in supply chain management
Wondering how to use QR Codes in CPG and supply chain management for other industries? Here are some use cases:
Tracking raw materials and components
You can track raw materials and components by adding QR Codes to their packaging. This way, with every scan, you get to see exactly where your materials are as they move through the supply chain.
Using QR Codes in this way can help you identify bottlenecks in delivery so you can reduce lead times. It also enables you to estimate delivery times so you can provide reliable delivery schedules to your clients.
Say you need a certain raw material to complete a client’s order. By leveraging QR Code technology linked to your supply chain management software, you can see the material’s locations and, based on this information and your production time, estimate when you’ll fulfill the client’s order.
Managing warehouse operations
If you’re struggling with warehouse management, QR Codes are the perfect solution for you. If integrated with your inventory management system, they can help you update your inventory levels immediately when you receive or ship products.
Moreover, since they automate data entry, they can limit the risk of errors that could lead to unplanned stockouts or prevent you from fulfilling your orders.
These codes can also provide warehouse staff with detailed product information, like batch codes and storage conditions, facilitating better organization.
Monitoring shipping and delivery
In a poll issued by McKinsey, 46% of respondents stated that they abandoned their carts because businesses either provided too-long shipping times or failed to provide the times at all. To say that modern consumers expect fast delivery, or at least transparency in delivery, would be an understatement. So, you need to find ways to provide both.
QR Codes can help if you add them to your product packaging. You get real-time data whenever someone scans them, enabling you to get a better picture of how long it takes products to reach your consumers. This can help you identify delays and provide better delivery time estimates.
Quality control and compliance
Industries like pharmaceuticals and food and beverage must exercise rigorous quality control and adhere to strict regulations to protect their customers and reputations.
QR Codes have become invaluable in these industries as they help with quality assurance. You can link them to landing pages or databases showing quality control information such as certifications and inspection reports. If you’re in the food industry, you can link them to nutritional value reports and ingredient information to make sure customers know what they’re buying.
Improving customer experience for eCommerce
QR Codes play a critical role in customer service by helping business owners and logistics managers improve their buyers’ experiences. How? There are various ways to leverage QR Code technology for this purpose, including:
- Using codes to help customers track their shipments throughout the supply chain
- Linking them to information pages to provide comprehensive product details
- Encoding product return forms to make it easier for customers to make returns
Best practices for using QR Codes in supply chain management
Convinced about the value of QR Codes in supply chain management? Here’s how to create high-quality codes to maximize your benefits:
Implement QR Code generation and management tools
The first step is to choose the right QR Code generation and management tools. Some of the key factors to consider in your selection include:
- User-friendliness: Go for tools with a simple interface to make it easy for your team to adapt to QR Codes in supply chain processes.
- Analytics: A tool with tracking features can help you trace products and assess QR Code usage in your operations.
- Customization options: This can help you align QR Codes with your brand identity.
- Integration capabilities: This way, you don’t have to manually transfer data from one system to another.
Bitly Codes are a top choice for many businesses because of their ease of use and reliability. They also have tracking capabilities, which show you data like the total number of scans, scans by device, and scans by location, allowing you to monitor their effectiveness and movement throughout the supply chain.
Further, Bitly Codes never expire, so you can rest assured they’ll remain effective no matter how long your supply chain processes take. You can also customize them by adding your brand colors and logo to reinforce your brand identity.
And the icing on the cake? Bitly integrates with many supply chain systems, maximizing efficiency throughout your supply chain.
Train staff on QR Code usage
QR Codes will only be beneficial if your staff knows how to use them appropriately. Otherwise, they may simply function as decorative elements on your products.
Take time to train your staff on everything from how to create QR Codes to how to scan and monitor them using your chosen tool. (While it’s easy, don’t assume everyone knows.) You can provide resources like articles and videos for review or even schedule formal training sessions with a professional.
When you complete training, track employees’ actions to identify potential gaps that may prevent them from fully leveraging your new technology.
Bitly’s user-friendliness simplifies the learning curve, allowing employees to quickly adapt to your new system.
Make sure the QR Codes are scannable
Make sure your codes are readable to promote efficiency. You can do this by:
- Using contrasting colors (if you customize your codes)
- Positioning the codes in accessible places, like at the center of product packaging
- Leaving some space around the codes to allow scanners or mobile devices to detect them
- Choosing an appropriate QR Code size—ideally, a minimum size of 2 cm x 2 cm
- Testing them out before releasing them
- Avoiding materials that are too rough or reflective
QR Code durability is also a vital factor as it helps maintain their integrity throughout the supply chain. To ensure durability:
- Use high-quality ink and toner for printing.
- Place the codes inside product packaging if you expect your products to be exposed to the elements—if you do, let customers know the code is inside by adding a call to action like “Scan the QR Code inside for more product details.”
- Use Bitly to create your codes to promote readability and durability. The platform has customizable QR Code options to ensure high-quality prints suitable for various conditions, and it also lets you download your codes in high-resolution formats like SVG.
Regularly update and maintain QR Code systems
Regular updates and maintenance help make sure staff and customers have access to the latest information.
To facilitate these processes, use Dynamic QR Codes since they allow you to change their destinations. For example, if you determine that the link embedded in your code is broken, you can always direct customers to a new link. And, if you want different players in the supply chain to see different product details, you can easily redirect your codes as needed.
You can use your codes to direct warehouse staff to a database that shows details like product batch and serial numbers and then change their destinations to lead customers to your website when products hit retail shelves.
Your choice of a tool can determine how easy it is for you to update and manage your QR Codes. So, always go for user-friendly, reliable solutions like Bitly.
Monitor and analyze QR Code data
It may take several tries to efficiently leverage QR Codes in supply chain management. This is why it’s important to monitor and analyze QR Code scan data. It can show you whether your QR Code usage in supply chain operations is effective by highlighting the number of people who scan your codes.
Data like scans by location can also help brands with warehouses and customers in multiple locations monitor their transportation efficiency and better understand their target demographics.
For effective data analysis, label your codes (if you have many) to allow you to differentiate them. Also, regularly monitor your scan data so you can pick up on changes in QR Code scans as soon as they occur.
QR Code monitoring and data analysis are seamless with Bitly Analytics. With this feature, you can access a wide range of scan data—total scans, scans by location, and top-performing scans—which can help you track QR Code performance and usage trends for continuous optimization.
Start using Bitly Codes to make your supply chain even more efficient
QR Codes facilitate everything from greater supply chain visibility to better warehouse management and product tracking. To fully enjoy the benefits of these nifty solutions, find a reliable QR Code management tool, ensure your codes are scannable, and regularly monitor their scan data to understand their usage and performance.
If you’re looking for an effective QR Code generator and manager for supply chain management QR Codes, Bitly is just the right tool for you. Through the platform, you can easily create custom QR Codes to provide vital product information and elevate inventory management. Further, you can monitor your QR Codes’ performance for continuous supply chain optimization.
Sign up for Bitly today to create QR Codes that improve tracking, efficiency, and visibility within supply chains!
