Inventory coding is used to make it quick and easy for warehouse staff to receive, identify, locate and issue inventory.
An efficient and flexible coding system should:
- Be consistent throughout the organisation
- Use codes as short as possible to avoid errors
- Contain only numbers, if possible as they can be keyed faster
- Avoid 0 (Zero) and the letter O
- Maintain the same length throughout
- Never re-use an “old” code for a new item;
- Develop a code structure that permits future expansion without restructuring
Have a meaningful code (i.e. one that is related to the item it represents, as this may help with identification later).