Paperless Barcode Solutions for Inventory Management

Danielle Lobo

Barcode scanning systems have been around for decades, but recent advances have made them dramatically more powerful, flexible, and affordable—especially for small and medium-sized businesses. What once required a six-figure investment in a full-fledged Warehouse Management System (WMS) can now be achieved using mobile barcode scanning solutions integrated directly into an ERP system.

One of the most significant innovations in this space is the use of smartphones and mobile devices as scanning tools. Instead of investing thousands of dollars into ruggedized, proprietary barcode scanners, businesses can now deploy warehouse-grade scanning apps on standard smartphones or tablets, outfitted with durable cases for added protection in demanding environments. These devices are not only cost-effective but also easier to update and replace.

Today’s warehouse inventory software often includes barcode scanning capabilities that support a wide range of operations—such as receiving, picking, packing, moving inventory, and conducting quick inventory lookups. The primary goal is to move toward a process-driven, paperless warehouse. Mobile scanning devices eliminate the need for printed pick tickets and handwritten notes by allowing staff to view orders and scan items directly on the warehouse floor. As a result, tasks like picking and receiving become faster, more accurate, and significantly less error-prone.

The data captured through barcode scanning is instantly transmitted to the ERP system—either in real time or through batch updates. This ensures that inventory records are always up to date, giving teams across departments immediate insight into stock levels and order statuses. Additionally, because the data is collected in a standardized and structured format, it supports more accurate and timely reporting. Business leaders can make faster, data-driven decisions, and employees can collaborate more efficiently with access to the same real-time information.

While some larger or more complex operations may still require advanced solutions like RFID tagging or full WMS platforms, many small and mid-sized distributors can now achieve impressive warehouse efficiency gains through built-in ERP barcode functionality. In fact, many all-in-one ERP systems already include barcode scanning features as part of their inventory management suite.

Before investing in standalone barcode scanning software, businesses should evaluate whether their current ERP solution already offers the tools they need. If not, it may be more efficient and cost-effective to move to an ERP platform that combines accounting, inventory management, CRM, and barcode scanning in one integrated system. This holistic approach not only reduces software sprawl but also ensures a more seamless and automated flow of data throughout the business.

To determine what level of barcode scanning functionality can benefit your company, if any, think about the following questions:

  1. How many orders are received and shipped a day?
  2. How big is your warehouse?
  3. Is your warehouse set up with bin and shelf locations?
  4. How many picking errors do your warehouse staff deal with on a regular basis?
  5. Do you inventory a lot of similar products, with small differences?
  6. What percentage of the SKUs you carry actually have barcodes?

What is a Paperless Barcode Solution?

Barcode scanning technology refers to any piece of hardware that allows you to scan and read barcodes.  This can vary from the scanners used at grocery stores to wireless scanning devices used for scanning barcodes while walking a warehouse floor.  In the past, it was common for wholesalers and distributors to invest $100,000+ on a Warehouse Management System (WMS) with ruggedized wireless barcode scanners in order to better manage their inventory and orders.  The other option was to manage inventory using paper and pen resulting in error, double entry and time wasted.  However, with the introduction of new technologies, companies are now able to accomplish many of the same tasks with more affordable scanning devices integrated with ERP software.  This option is perfect for smaller companies who don’t need a full WMS system and want to minimize their paper waste.

For businesses that manage a large volume of orders per day, have a big warehouse that is set up with bin and shelf locations, pick similar products and deal with a high number of picking errors, sophisticated wireless barcode scanning is most likely a worthy investment.  However, for those companies who do not meet the above criteria (or perhaps only a few of them), a sophisticated barcode scanning solution is probably not necessary.

Option 1: Sophisticated Wireless Scanning Technology

If your company decides to invest in sophisticated wireless barcode scanning technology, you will be able to automate the receiving, picking and packing process and quickly lookup inventory items (such as product in stock and on backorder, product available at other locations, and product descriptions, categories, pricing and images) in the warehouse.  This software can be used on traditional, ruggedized handheld barcode scanners or on less expensive hardware such as iOS devices including iPods and iPhones. iOS devices provide all the same functionality but are much cheaper and can be easier to use.  Whatever type of handheld solution you employ, they are all designed to help businesses achieve process-driven and paperless warehouses.

Wireless barcode scanners allow users to quickly retrieve product and order information while walking the warehouse floor, pick product most efficiently following bin and shelf location and easily receive new shipments electronically.  When picking an order, items get scanned at the source as they are picked and can then be brought to a packing station. When receiving product, employees can scan each item into the system which allocates it to the proper bin and shelf location and adjusts inventory levels. With barcode scanning there is no need for employees to manually track information with paper and pen as it is done automatically.

Option 2: Simple, Verification Scanning Technology

Companies with a small number of daily orders can gain a lot of the same efficiencies, without needing sophisticated and expensive wireless barcode scanning.  Instead of using wireless scanning devices, verification scanning devices are set-up at different computer stations throughout your warehouse (such as receiving and packing) and manual pen and paper processes are used for picking orders. A proper inventory and accounting ERP system will allow users to print pick slips (according to bin and shelf locations if this is set up), where employees can then pick product and manually check items off the list as they go through the warehouse.  After the order has been picked and brought to a packing station, employees can use verification scanning attached to a computer to pack the items while at the same time cross checking them against the pick slip.

Verification scanners are much cheaper pieces of equipment that help companies’ double check product as it gets received and packed. In this situation, some processes are more manual, however, when you’re dealing with only a small number of orders per day, this shouldn't be a problem.  Your warehouse staff can still gain efficiencies by being able to print picking and packing slips, pick according to bin and shelf locations and double check orders when receiving inventory and packing a shipment.

Before assuming your company needs wireless barcode scanning, take a minute to evaluate your current processes and weigh the costs against the efficiencies that you will gain. Depending on the sophistication of your warehouse set up, you may be able to gain efficiencies without barcode scanning through other key functionality offered by inventory and accounting ERP software.  Even if you do decide to invest in barcode scanning technology and hardware there are several other less-expensive options available today than compared with the traditional handheld devices.