Bar Codes allow inventory to be tracked electronically. This allows information to be available in real-time, and as long as every item is being scanned whenever it is moved then this will generally achieve a high-level of accuracy. Obviously this then may allow the organisation to reduce amount of inventory counts etc. which allows for substantial savings in time and manpower.
One specific, individual item with a unique bar code is used whenever traceability of a specific item is important. For example something like a jet engine manufacturer would give a unique bar code to a high-stress engine part. This allows for a permanent record of the specific engine containing that specific part, so in the event of failure this can be traced back to source. Should the organisation want to monitor quality and location then all items with the same code or part number will be coded.
Once an organisation has identified an item with a bar code, that code can be used by the retailer for pricing information, stock control aspects, point of sale data capture and to ensure that stock is re-ordered as required.
However, there must be a standard, that is used across the business and its suppliers.
