Barcode inventory tracking for a small distributor’s warehouse

Why do counts drift?

• Receiving is recorded from the paperwork, not the delivery. The packing slip says 20 cases, 18 arrived, and 20 go into the system.
• Locations aren’t recorded. The system knows you have it. Only the person who put it away knows where.
• Look-alike items. Two sizes in similar boxes, or codes that differ by one character, typed by hand.
• Units get mixed up. A case of 12 received as 12 cases, or picked as one each.
• Stock leaves before it’s recorded. Picks are recorded at invoicing, and returns or damaged goods go to a corner without a record.
• Counting once a year. By the time a gap shows up, nobody remembers why.

How do you start yourself?

1. Label every location. Give each aisle, shelf and bin a short code, such as A-03-2, and put it on a printed label.
2. Use the barcodes already on your products. Many products arrive with barcodes printed. If you also sell your own branded products into retailers, GS1 US is where product barcodes come from. As GS1 US puts it, “Barcodes from GS1 identify your company as the brand owner of that product.”
3. Fix units of measure. Decide for each item whether you stock, receive and sell it by the case or by the each, and write the conversion into the item record.
4. Receive what arrived. Count the delivery against the packing slip before it’s put away, and record the real quantity the same day.
5. Cycle count every week. Count a few locations each week instead of everything once a year. Count fast-moving and high-value items more often. Record every adjustment with a reason.
6. Check what your accounting software already does. Intuit lists inventory tracking in QuickBooks Online Plus and Advanced. For QuickBooks Desktop Enterprise, Intuit says Advanced Inventory “is included in the Platinum and Diamond subscriptions only,” and that it works with both wired and wireless scanners, with stock across multiple sites and tracking by serial or lot number. Scanners are sold separately.
7. Try one process first. Pick receiving or picking, run it with a scanner for two weeks and compare the cycle counts before and after.

What are your options?

Option	Good when	Watch for
Do it yourself	A modest number of items and locations, and one person who owns the counts	Habits slip when the warehouse gets busy
Buy a tool	Its receiving, picking and location setup match how you work	Two systems holding stock, sync errors, per-user and per-device fees
Hire a freelancer	One clear process, such as receiving, and someone in-house to own it	Upkeep when software updates, documentation, ownership
Bring in an outside team (Custom software)	You need bin-level locations, pick lists on a handheld, stock held in more than one system, or lot, expiry or serial numbers beyond your plan	Time from your warehouse lead; agree in writing which system holds the stock figure

If the bigger problem is orders, price lists and fulfillment as a whole, see order and inventory management for distributors.

FAQ

Do we need GS1 barcodes?

Mainly for products you sell under your own brand, where GS1 barcodes identify you as the brand owner and retailers look for that. Labels for your own shelves and bins can be printed in-house.

Can QuickBooks scan barcodes?

Intuit says Advanced Inventory in QuickBooks Desktop Enterprise, on the Platinum and Diamond subscriptions, supports wired and wireless scanners. For QuickBooks Online, ask Intuit or your bookkeeper what your plan and any add-ons support before buying hardware.

What kind of scanner should we buy?

Test before you buy in bulk. Check that it reads your product barcodes and your location labels, and that the code ends up where your software expects it.

How often should we cycle count?

Often enough that a gap is found while someone still remembers why. Weekly counts of a few locations, with fast-moving and high-value items counted more often, is a reasonable starting point.