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Warehouse coding system

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Warehouse coding system

Warehouse coding system is used to facilitate the identification process as well as the storage of goods in the warehouse. Because in this system, each product will be registered in the system with an ID which is specific to that product. Given the steps mentioned, using a coding system can easily increase the speed of operation in warehousing.

In other words, using the coding system in the warehouse reduces the variety of items and also simplifies the method of identifying them. For the reasons mentioned above, choosing the right system for coding goods in your warehouses is very important given the number and variety of goods. It is necessary to know that choosing the right system for coding goods in warehouses depends on a complete and accurate knowledge of the goods and their suppliers.

Benefits of using coding system in warehouses

Now that you are familiar with the operation of the coding system, we can talk about the benefits of using this system in warehouses. One of the most important benefits of using this system is electronic warehouse management, which makes warehousing easier and allows you to track goods at any level of the organization. By using this coding, it is easy to identify and list the suppliers of goods so that we have easier access to this information when necessary.

In the warehouse coding system, the appropriate instructions for naming items and goods should be based on their appearance and function. For example, if there are 4 different types of ovens but with similar functions in stock, they must be specified with a code and a name. Because it will lead to better and more efficient warehousing and help reduce potential warehousing costs. Moreover, you can easily select and filter the goods by using this coding system.

By applying a suitable product coding system in your warehouses, you can easily identify the amount of real deficits in the warehouse. You can also identify amount of sleeping capital by separating fast moving goods, stagnant goods, semi-stagnant goods, slow moving goods, etc. and plan to increase or decrease capital for these goods.

By using coding system in warehousing you save many costs like paper consumption also you save your time to enter the goods in the system and update the inventory. This significantly reduces warehousing costs and reduces the possibility of typos and difficulty reading the names of goods. One of the advantages of using coding system is the possibility to control perishability of the goods.

 What parts of an organization are effected in using the coding system?

As mentioned in the paragraphs above, using a coding system affects all parts of an organization and it leads to more accurate actions and it also controls the quality of actions. By using coding system, you can take control of production. We should also mention by using coding system you will offer much better sale service and post-sale service.

What are coding methods in warehouses?

In general, there are eight methods for coding goods in coding systems, all of which will be affected by the amount of goods in stock and also the type of system used in coding warehouse. Moreover, you should use a method which is easy to learn and use for warehouse or sales.

Different methods of coding in warehouse

Coding methods include the simple method, combined numbers method, group method, decimal method, letter method, nimonic method, secret code methods, special code method, standard code method. As it was mentioned before, selecting and applying an appropriate method depends on the type of goods and their quantity in stock.