How to Optimize a Barcode Scanner for Inventory

As inventory operations become more complex and distributed across locations, the challenge of using and optimizing barcode scanning grows. When scanning thousands, tens of thousands, or even millions of barcodes daily, how can you ensure your software and processes keep up?

This expert guide explains how to use barcodes for inventory management and outlines best practices to improve the performance, accuracy, and usability of barcode scanners in retail, warehouse, and logistics environments. By understanding the human and technical nuances presented here, you can implement smarter improvements to increase scanning efficiency and ensure every package appears in your ERP faster.

Barcode inventory systems follow a series of interconnected steps that start with capturing encoded data and storing it in an ERP. An effective barcode-scanning integration built from scratch must address all these steps. Getting it wrong can lead to efficiency and data accuracy problems ranging from user experience issues to performance degradation.

Understanding the nuances of each stage is essential for identifying potential bottlenecks and implementing targeted performance optimizations. Let's walk through the key aspects here.

What are barcodes?

The technology used to encode data on physical labels is at the core of any barcode inventory system. One-dimensional (1D) and two-dimensional (2D) barcodes are visual representations (known as symbologies) of alphanumeric information.

1D barcodes, such as EAN, UPC, and Code 128, consist of a series of vertical bars and spaces of varying widths. These codes are commonly used to identify consumer products, track inventory, and encode limited amounts of data.

1D barcodes are well-suited for high-throughput scenarios where rapid data capture is required, such as inventory cycle counting. For example, UPC and EAN barcodes encode Global Trade Identification Numbers (GTIN), which companies use to uniquely identify products priced, ordered, or invoiced at any point in their supply chains.

2D barcodes, such as Data Matrix or QR codes, store more data than 1D codes and support use cases beyond basic inventory management. These codes can store information such as website URLs, contact details, and extended product attributes.

This data is captured by specialized hardware devices or software-based scanners, such as camera-based apps running on smartphones.

To find out more about the intricacies of barcode scanning technology, check out our deep dive into how barcode scanners work.

When selecting a barcode symbology for inventory management, consider factors such as data density, scanning speed, error correction capabilities, and compatibility with existing systems. Most important, though, is matching the symbology used by your industry.

Aligning the barcode symbology with your inventory operation’s specific requirements helps optimize scanning performance and maximize the benefits of data capture.

How a barcode inventory management system works

A barcode inventory management system uses software to capture item information from barcodes and transmit it to back-end enterprise resource planning (ERP) applications to track, update, and report on inventory in real time.

The barcode scanning process typically involves the following steps:

1. Locate: The user must first locate the barcode within the device sensor’s field of view (laser, camera, or otherwise). This requires positioning the scanning device correctly, and ensuring that the barcode is visible and unobstructed. Factors such as lighting conditions, barcode size and placement, and having multiple barcodes in view can impact the speed and accuracy of scanning.
2. Capture: Once the barcode is located, the user triggers the scan to capture it. Controls that are hard to find or use make the scanning process difficult and inefficient. For camera-based scanners, the quality of the captured image also directly influences the success of the subsequent decoding step. Using high-performing barcode scanning software that compensates for blurry, damaged, or poorly lit barcodes improves accuracy and efficiency. For example, Scandit software adapts to its environment to ensure higher accuracy rates under a broad range of conditions.
3. Decode: The captured image is processed by the scanning software, which translates the visual representation into alphanumeric data. Lower specification barcode scanning software can result in data inaccuracies being introduced here, for example if it has a high false positive rate for the barcode symbology being scanned.
4. Synchronize with the ERP: The decoded barcode data is transmitted to the inventory management system for further processing and analysis. This step relies on a tight integration between the scanning device and the backend infrastructure.

Once the system is updated, it can monitor inventory levels, trigger actions, and support data analysis and reporting. By optimizing each stage of the process, you can minimize errors and enhance overall efficiency.

For a complete walkthrough of the end-to-end barcode inventory management process, read Barcode Inventory Systems: The Ultimate Guide.

The advantages of optimizing barcode scanning are reducing human error and enabling higher volumes of items to be scanned. Both benefits improve inventory accuracy.

If businesses don’t know their inventory, everything else falls apart. Scandit supports retailers in achieving up to 100% inventory accuracy, helping them to create a single, reliable source of truth, ensuring everyone can make confident decisions based on the same data.

Lyndal Moeller, Scandit Senior Industry Solutions Manager, Retail

Older scanning software and algorithms that cannot adapt to different environments and use cases are inherently prone to mistakes. This leads to inaccurate inventory records and potential stock discrepancies. Similarly, slower-performing software limits how many items can be scanned by employees during their shifts.

Optimized barcode scanning software enables accurate, real-time inventory tracking and visibility. As items are scanned at various points throughout the supply chain, fast, error-free, and ideally automated data capture results in continuous updates of your ERP with the latest package information.

Having greater confidence in the data empowers you to make informed choices regarding procurement, allocation, and replenishment, leading to improved inventory turnover rates and reduced carrying costs.

On the floor, optimized barcode scanning facilitates faster and more efficient inventory counting processes. Slower and less user-friendly scanning software can be time-consuming and resource-intensive, often requiring significant labor hours and disrupting regular operations.

With optimized barcode scanning, inventory counts can be completed more quickly and accurately, minimizing the impact on daily activities and enabling more frequent cycle counts for enhanced inventory control.

While barcode scanning offers many advantages, inventory operations teams must know how to address potential obstacles.

Poor scan accuracy

Insufficient or uneven lighting, glare from reflective packaging, and dirt or smudges on the barcode or scanner lens can lead to scanning errors and inefficiencies. Addressing these challenges may involve controlling the scanning environment, implementing hardware solutions such as built-in illumination, or leveraging advanced software capabilities to compensate for suboptimal conditions.

Variability in barcode symbologies

Different industries and applications use specific barcode types, each with its own characteristics and encoding patterns. For example, GS1 maintains the technical standards for UPC, EAN, Data Matrix, and other symbologies.

Ensuring compatibility between the scanning software and the required symbologies is crucial for reliable data capture.

Low barcode quality

Low print quality, insufficient contrast, and incorrect dimensions can hinder scanning accuracy. Implementing robust quality control measures and investing in high-quality printing equipment help alleviate these issues, as does choosing high-performing barcode scanning software that can scan even sub-optimally printed codes.

Barcode duplication and cross-contamination

When multiple items share the same barcode or barcodes from different products are in the scanner’s field of view, you may get incorrect data and inventory discrepancies. Implementing strict barcode verification processes and deploying software with built-in validation capabilities can help detect and prevent such issues.

Human error

Factors such as poor scanning techniques, a cumbersome UI, distractions, and fatigue can contribute to inaccurate or missed scans. While training and education can help mitigate these issues, technology solutions like a user-focused UI, multiple barcode scanning, real-time validation, and augmented reality overlays can further reduce the risk of human error by automating repetitive tasks and providing intuitive guidance to operators.

Software integration issues

Compatibility with existing developer tooling, data integration challenges, and limited support can lead to project delays and poor performance. Partnering with experienced vendors who offer industry-specific integration options, comprehensive support, and ongoing updates helps overcome these hurdles and ensure a successful deployment.

Mistakes and fatigue due to multiple barcode scans

When employees scan hundreds of barcodes a day, the likelihood of mistakes and fatigue increases. Software that helps them scan barcodes in batches, such as MatrixScan Count (pictured below) and assists them using augmented reality (AR), such as MatrixScan Find, go a long way toward reducing these issues.

To achieve optimal performance and maximize the benefits of barcode scanning in inventory management, consider the following best practices:

1. Proper barcode placement: Train employees and use documented procedures to ensure barcodes are placed in easily accessible and visible locations on packages. Include instructions to avoid obstructing or damaging barcodes during handling and storage.
2. Compliance with industry standards: Familiarize yourself with the relevant industry standard barcode types and ensure your barcode system and scanning software support them. For example, retail inventory management environments often use UPC or EAN barcodes, while code 128 is used for shipping labels and medical applications.
3. Scanner selection: Consider hardware and software factors such as scanning range, durability, ergonomics, and compatibility with your existing infrastructure. With more companies and employees using smartphones, camera-based scanners can be deployed quickly across their user bases. Smart devices also offer access to advanced capabilities such as batch scanning and augmented reality. Our guide on choosing a barcode scanner provides helpful tips on how to find the right one.
4. Real-world testing: Conduct thorough testing of your barcode scanning software using real-world use cases – our blog on how to measure barcode scanning performance has a detailed walkthrough. An important goal that many teams miss is to engage actual users in the testing process. This ensures the test conditions accurately reflect the scenarios they will encounter. It’s also critical to identify and address issues early in the development process to ensure a smooth and efficient user experience.
5. Use the latest software: Regularly update your barcode scanning software to get the latest optimizations, bug fixes, security patches, and hardware-specific adaptations.
6. Prioritize user experience and adoption: Prioritize user experience when choosing your barcode scanner, and invest in well-planned and executed training programs to ensure adoption of your barcode scanning software. Training should cover basic functions, real-world scenarios, and advanced features and provide opportunities for employee feedback and continuous improvement.
7. Regular system testing: Establish a routine testing schedule to proactively identify and address any issues with your barcode scanning software. Regular testing helps catch errors early, prevents major disruptions, and ensures the ongoing reliability and accuracy of your inventory management processes.
8. Give users their best scanning interface: Your user interface should simplify the scanning process. Whether out-of-the-box or customized, intuitive controls, clear feedback mechanisms, and individual preference settings enhance usability and reduce the learning curves. If development time and resources are limited, look at a pre-built scanning component such as Scandit SparkScan (pictured below). It provides an optimized scanning experience that fits on top of any application without requiring redesign or customization.

Here is an example of the real-world results businesses achieve by focusing on improving their barcode scanning for inventory operations.

VF Corporation: One of the world’s largest apparel, footwear, and accessories companies achieved 100% inventory accuracy for omnichannel orders and cut store associates’ labor time by over 50% by upgrading their barcode scanning solution to Scandit’s high-performance software.

Barcode scanning software allows organizations to streamline inventory processes, reduce errors, and gain real-time visibility – but only if optimized for your use cases. By implementing the best practices explained here, you can unlock the full potential of your barcode scanning system.