QR Codes for Supply Chain Management 

Supply chain management is the cornerstone for long-term business growth, and it helps companies minimize costs, identify and eliminate risks, and improve consumer experiences. 

Today, supply chains have become relatively more complex due to higher consumer expectations, integration of new technologies, and even disruptions such as natural disasters and the COVID-19 pandemic. As per a 2020 study by Axios, about 75% of businesses in the U.S. experienced major supply chain disruptions during the pandemic. 

QR codes, besides RFID and barcode technologies, have emerged as a game-changer for supply chain management. These codes help optimize a wide range of supply chain operations and build more trust with consumers. Moreover, QR codes are the most cost-effective tool to enhance supply chain visibility and efficiency. 

In this blog, you will learn how incorporating QR codes into supply chain operations can make them more seamless and efficient. 

QR codes for supply chain management – a more efficient alternative to barcodes

Invented before QR codes, barcode was the first technology used for inventory tracking and other supply chain processes. However, many organizations are now adopting QR codes instead of the traditionally used barcodes owing to some significant advantages. 

QR codes offer a two-dimensional view of data and allow users to track shipment location, number of scans, and other information. Some major advantages of QR codes over barcodes in supply chain management include: 

• QR codes have a higher data storage capacity compared to barcodes, storing up to 7,089 characters. Barcodes, on the other hand, store only 20-25 characters. 

• QR codes are much easier to read and less prone to damage than barcodes. 

• QR codes are a more cost-effective option for small businesses. Unlike barcodes that require expensive scanning equipment, these codes can be scanned simply with smartphones. 

• QR codes can be used to store encrypted data, which makes it a more secure option than barcodes for data storage. 

Benefits of QR codes in supply chain management 

Let us look at how incorporating QR codes into various supply chain operations can benefit your business. 

Improved supply chain visibility

QR codes enable real-time tracking of products, thus improving supply chain visibility. These codes provide information on shipment data, product details, batch numbers, etc., facilitating continuous monitoring of goods.

Enhanced inventory tracking and management

QR codes facilitate efficient inventory management by reducing the likelihood of human errors and providing real-time insights into inventory tracking. Employees can track product movements, update stock levels, and manage other supply chain processes by simply scanning QR codes. 

Improved security and accuracy

Using QR codes for supply chain processes helps enhance data security and prevent fraudulent acts such as counterfeiting. Moreover, QR code scanning minimizes the chances of manual errors, leading to improved operational accuracy and faster shipping.

Better coordination  

Integration of QR codes into supply chain management processes facilitates communication and coordination among all the stakeholders (including manufacturers, suppliers, and customers) in the supply chain. 

Effective applications of QR codes in supply chain management

QR codes not only enhance the operational efficiency of a supply chain but also foster transparency and build trust among the stakeholders. 

Here’s how businesses can use QR codes effectively in supply chain management. 

Package tracking

QR codes facilitate real-time package tracking; for instance, by scanning the QR codes placed on product packaging, one can track the whereabouts of the packages throughout the supply chain. For package tracking, you can use the URL QR code that, upon scanning, redirects to a web page that displays real-time location updates, shipment status, and other product-related information.   

Read our article How to Make a QR Code for a Link? to learn how to create your own URL QR code 

Inventory management 

QR codes facilitate inventory tracking, help employees update stock levels, and prevent stockouts or overstocking. These codes can be integrated into inventory management systems to provide direct link to the systems’ API and facilitate communication between the inventory software and your scanning devices or apps.  QR codes also help track the location of inventory items through the different phases of the supply chain. 

Asset management 

Asset management is just as crucial for any business as inventory management, and using QR codes, they can do it more efficiently. You can scan the QR codes placed on assets such as laptops, printers, and other hardware to track their location and quantity as they move through the warehouse during production.

These codes also provide detailed product information, including storage conditions and batch codes, helping warehouse staff better manage the assets.  

Product quality control 

QR codes can help streamline product quality control processes by providing seamless access to product quality information such as inspection reports, certifications, etc. 

Form QR codes can also be suitable for this application, as these codes can include quality control forms or inspection checklists. It reduces paperwork for inspectors, allowing them to smoothly access and complete these digital forms. 

Customer feedback 

Customer satisfaction is one of the primary goals of supply chain management. Customer feedback helps organizations understand how satisfied their customers are and which areas they need to improve. Form QR codes help streamline feedback collection for businesses. 

With form QR codes for feedback, customers can share their feedback instantly. These codes offer quick and easy access to customer feedback forms, thus increasing response rates and enhancing customer engagement. 

QRCodeChimp’s Form QR code generator lets you create customized feedback forms and surveys to improve customer experiences and boost participation. 

Explore How to Create Form QR Code to Collect First-Party Data to learn more about feedback forms 

Tips to optimize your QR codes for supply chain operations 

• Define your supply chain goals, such as improving product traceability and enhancing inventory tracking and management.  

• Select the best QR code generator platform to create QR codes that are ideal for your business needs. 

• Create QR code labels that are noticeable enough and ensure their proper placement.

• Design or customize the QR codes before getting them printed. Use contrasting colors and avoid reflective materials. 

• Once you have created the QR codes, test them using your smartphone camera to ensure their scannability. 

• Allow users to access the latest information by regularly updating your QR codes. Make sure you create dynamic QR codes that you can edit anytime after printing. 

• Train your staff to scan the QR codes and implement the information accessed effectively to improve several workflows across the supply chain.  

Conclusion 

Growing complexities in modern supply chain networks call for the integration of disruptive technologies like QR codes to streamline supply chain management. QR codes help simplify numerous supply chain processes and enhance operational efficiency. This article walks you through various benefits and applications of QR codes in supply chain management and tips on how you can optimize these codes. 

Frequently asked questions