Inventory Numbering
The system and the processes used for identifying products or goods must make it as easy, quick and accurate in order to book, identify and locate the inventory into the organisation.
There is no universal system for coding or numbering inventory. Every company creates its own system to suit its own needs. Items can be coded by type, purpose or any other appropriate factor.
In general, a good coding system should:
- Avoid long, descriptive titles;
- Accurately identify all items – What is it not what is it used for;
- Prevent duplication of items;
- Assist standardisation – every department uses the same numbering system;
- Reduce varieties;
- Simplify mechanical recording;
- Simplify pricing and testing; and
- Be the basis for recording and storing inventory data.
