Product Tracking System: Definition and How to Do It

In today’s fast-paced business world, keeping track of inventory is essential for the smooth functioning of businesses. Many businesses use product tracking systems to ensure that their inventory is well-managed and that their products are accounted for. In this article, we will discuss the definition of the product tracking system, why it is important, and how to do it.

What is a Product Tracking System?

A product tracking system is a process that businesses use to track their inventory, from the time a product is manufactured until it is sold. This system is designed to help businesses manage their inventory by providing real-time information on stock levels, locations, and movement.

It involves the use of tools such as barcode scanners, RFID tags, and batch codes to identify and track products. The product tracking system provides businesses with accurate data on inventory levels, which enables them to make informed decisions on when to restock, how much to restock, and which products to restock.

This data also helps businesses to identify and address issues such as stockouts, overstocks, and product shrinkage.

Why Is Production Tracking Important?

Production tracking is essential for businesses because it helps them to manage their inventory efficiently, which can have a significant impact on their bottom line. Here are some reasons why production tracking is important:

Avoid Stockouts

Stockouts occur when a business runs out of stock of a particular product caused by various reasons, such as an increase in demand, a delay in the supply chain, or a lack of visibility into inventory levels. Stockouts can lead to lost sales, dissatisfied customers, and damage to the business’s reputation.

Production tracking can help businesses avoid stockouts by providing real-time information on inventory levels. By knowing exactly how much stock they have and where it is located, businesses can ensure that they always have the products their customers need.

Prevent Overstocks

Overstocks occur when a business has too much stock of a particular product. This can happen due to various reasons, such as an overestimation of demand or a failure to manage inventory effectively. Overstock can lead to wasted resources, increased storage costs, and reduced profitability.

Production tracking can help businesses prevent overstock by providing real-time information on inventory levels. By knowing exactly how much stock they have and where it is located, businesses can avoid overordering and reduce the risk of overstocking.

Improve Customer Service

Customer service is a critical aspect of any business. A product tracking system can help businesses to improve their customer service by ensuring that they always have the products their customers need. By knowing exactly where their products are and how much they have, businesses can fulfill orders quickly and accurately, reducing the risk of dissatisfied customers.

How Do You Track Product Inventory?

There are several ways to track product inventory, and businesses can choose the method that works best for them. Some of the most popular methods include:

Barcode Scanning

Barcoding is a widely-used method of tracking product inventory. Each product has a unique barcode label attached to it. The barcode contains product information such as the product name, SKU, and price. When the barcode is scanned using a barcode scanner, the information is transmitted to an inventory management system.

This system can track product movement and stock levels, and generate reports on inventory status. Barcoding has several advantages, including speed, accuracy, and cost-effectiveness. It is a quick and efficient way of tracking inventory, and it reduces the likelihood of human errors.

Read About: Understanding Barcode Types and The Applications

RFID Tagging

RFID (Radio-Frequency Identification) tagging is another way businesses can track their inventory. RFID tags are attached to products, and each tag has a unique identification number. The tags can be read remotely by an RFID reader. The reader can track product movement and generate reports on inventory status.

RFID tagging has several advantages, including increased accuracy and speed. It is particularly useful for tracking products that are difficult to scan, such as liquids or products in bulk. However, RFID tagging can be more expensive than other methods of tracking inventory.

Batch Codes

Batch codes are unique identification numbers assigned to a batch of products. The code contains information such as the date of manufacture, production line, and location. Each product within the batch has the same batch code.

Batch codes are particularly useful for businesses that deal with perishable goods, such as food or medicine. They can help businesses quickly identify and isolate any faulty products. Batch codes can be printed on labels or directly on the product.

Batch Code as Solution for Tracking Product

Batch codes are an effective way to track products, especially for businesses that deal with perishable goods. They provide businesses with real-time information on the location, stock level, and movement of each batch of products.

Batch codes also help businesses quickly identify and address quality control issues. For example, if a particular batch of products is found to be faulty, businesses can easily identify all the products in that batch and isolate them from the rest of the inventory.

To implement a batch code system, businesses need to assign a unique code to each batch of products. This code should include information on the date of manufacture, the production line, and the location of the batch. The code can then be printed on each product, making it easy to track each product from the time it is manufactured until it is sold.

To track products using batch codes, businesses can use inventory management software that supports batch tracking. This software can help businesses to manage their inventory efficiently by providing real-time information on stock levels, locations, and movement.

The software can also generate reports on inventory levels, which can be used to make informed decisions on when to restock, how much to restock, and which products to restock.

Product tracking is essential for businesses that want to manage their inventory efficiently and provide excellent customer service. There are several ways to track products, including barcode scanning, RFID tagging, and batch codes.

Batch codes are particularly useful for businesses that deal with perishable goods and want to quickly identify and address quality control issues. By implementing a product tracking system, businesses can save money, reduce waste, and improve their customer service.