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Breakdown of goods by item codes

The order in the warehouse can be maintained by means of different types of classification. It is important that each item is properly classified so that it can be easily found when it is needed and the sale and purchase of products can be organised. Usually our warehouses operate management programmes which, when properly updated, enable us to find all necessary information about the goods in stock. In order to be able to work efficiently with this type of programme, each product entering and leaving the warehouse should be labelled with a code and entered into the system.

The codes may be the same as product codes or they can be specially prepared for warehouse management. The choice is up to warehouse manager, but either way is just as good. Each decision should be made based on how you want to organise your warehouse.

Different methods of grouping goods by codes

There are different ways of creating codes for products in a warehouse, and the choice usually depends on the type of company: a manufacturing company adopts different codes than a sales company, just as a small warehouse can choose a simpler and more intuitive method than a large distribution centre. In the latter case, there is a continuous flow of articles belonging to different product categories, often in large quantities.

These types of warehouses use standard EAN coding, which is a common barcode that allows each product to be clearly identified across the European Union. Smaller warehouses or large companies that want to personalise their warehouse management can use three other types of codes:

  • Descriptive code
  • Progressive code
  • Double code.

Let’s look at the specifics.

Breakdown of goods by descriptive codes

G&G frequently breaks warehouse goods down by using descriptive codes. In practice, the article code uses a term or intuitive abbreviation that recalls its identification. If there are variants of certain products, a second part is added to the first intuitive part, which defines its characteristics. For custom-made products, a customer reference can be made to the code.

Breakdown of goods by progressive codes

Another type of codes used in order to classify the products are progressive codes. In this case the products are identified by alphanumeric codes. Usually the progressive part is attached to a fixed base to create categories and subcategories of goods. Double code However, in the case of the breakdown of items in a warehouse by a double code, the two types of previous codes are combined. In practice, the first part of the code is intuitive, while the second part is progressive and closely related to the first. The use of this type of code makes it easier and faster to search for products in the management system, as they can be searched by progressive code or by characteristics.

Extremely sensitive stage

The stage when goods are grouped by article codes is not a simple one, and the risk of making mistakes is very high. These are errors that do not have immediate consequences, but can affect company performance in the long term. Therefore, we believe that it is important to support our employees at this stage with appropriate equipment in order to maximise accurateness and avoid potential coordination issues at the warehouse.

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