Watch our episode on retail inventory management below to learn the ins and outs of how to manage your inventory like a pro. For a quick overview of what we covered in the episode, read on.

What is retail inventory management?

Let’s start with the basics. When we talk about retail inventory management, we’re dealing with two main types of inventory that are equally important to your success: finished goods and packing materials.

• Finished goods: The products sitting on your shelves, ready for customers to purchase.
• Packing materials: The materials used to get your finished products to your customers.

It may not seem like a big deal to track packing materials, but try thinking about it this way: if you’re selling a $5,000 camera and you run out of the special bubble wrap needed to ship it safely, that customer isn’t going to get their camera.

This is why successful retailers never sleep on packing materials. Your boxes, tissue paper, and protective packaging are just as critical as the products themselves.

The five categories of finished products

You can break down finished goods into five distinct categories, and understanding these categories can transform how you manage your business.

• Ready-for-sale inventory is obvious. It’s what customers can buy right now.
• Allocated products refer to those that have been sold and assigned to a customer. This distinction is crucial because the product might still be sitting on your shelf, even though it has already been sold.
• In-transit inventory refers to products that have left your facility but have not yet reached the customer.
• Safety stock is your business’s parachute for when things go wrong (and they will). Consider safety stock as your cushion for those “just in case” moments.
• Seasonal inventory is stock you can plan for. Whether it’s Valentine’s Day, Black Friday, or that predictable March surge you’ve noticed in your sales data, seasonal inventory helps you prepare for known demand patterns.

Why this actually matters for your bottom line

Here’s the thing about effective retail inventory management—it’s not just about organization. It’s about having exactly what you need to meet customer demand without tying up too much cash in products that sit on shelves collecting dust.

Good inventory management saves you money by reducing carrying costs and preventing dead stock.

However, the time savings from proper inventory management may provide the most value. Think about cooking in your own kitchen versus trying to make the same meal in someone else’s kitchen. In your own space, you know exactly where everything is, and you can whip up a great meal in just  20 minutes. In an unfamiliar kitchen, that same meal takes twice as long because you’re constantly searching for tools and ingredients.

Inventory management works the same way. When everything is organized and you know exactly what you have and where it is, your entire operation runs smoothly. And when your processes are smooth and efficient, you can scale and grow your business.

When retail giants fall: inventory management disasters

Even giant retailers aren’t immune to the problems poor inventory management can bring. Take Forever 21, which built a $4.4 billion empire through fast fashion, mass-producing trendy clothes at low prices with quick turnovers. However, when the retail landscape shifted in 2017, they failed to adapt their inventory strategy. Instead of adjusting, they continued to expand and accumulate excess inventory. In fast fashion, when styles change faster than you can sell them, that excess becomes dead stock. As a result, they were forced to dramatically reduce prices, which destroyed their profit margins and eventually led to bankruptcy in 2019.

Meanwhile, the price wars of the 1990s revealed another valuable lesson in inventory management. While Walmart implemented just-in-time inventory management, Kmart continued to use outdated inventory techniques. The results were stark: over five years, Kmart’s stock dropped 60% while Walmart’s rose 80%. Kmart’s inability to modernize its inventory systems ultimately led to its merger with Sears.

The lesson? Even billion-dollar companies can’t survive poor inventory management.

Building your inventory management foundation

So what should you actually do? The most effective thing you can do is invest in a proper inventory management system. Modern systems let you handle purchase orders, sales orders, and even pick, pack, and ship, all while using barcodes to track everything in real-time.

Another easy win is keeping a healthy supply of safety stock. As we’ve seen in recent years, supply chain disruptions can happen unexpectedly. And yes, you need to start a cycle count program. Nobody likes counting inventory, but even the best systems in the world will have discrepancies between what’s in your computer and what’s actually on your shelves.

The bottom line

Successful retail isn’t about having the most products or the biggest store, it’s about having the right products at the right time in the right quantities. It’s about understanding that inventory management has a direct impact on your cash flow, customer satisfaction, and ability to grow.

Ready to dive deeper into these inventory management strategies? Watch the full podcast episode to learn more.

The post Secret Life of Inventory – Episode #2 – Mastering Retail Inventory (Why Did F21, Kmart & Sears Go Bankrupt?) appeared first on inFlow Inventory.

This article will briefly summarize the key concepts covered in the podcast, but we’re just scratching the surface here. For the complete breakdown, detailed explanations, real-world examples, and all the insider tips, be sure to check out the full episode linked below.

What exactly is inventory management?

At its core, inventory management is about having what you need when you need it. Now, don’t make the mistake of thinking this only applies to retail stores with shelves full of products. Inventory management extends to every industry, from wholesale & distribution, manufacturing, warehousing, field services, and even asset tracking. The reality is that any business with physical goods that need to be tracked needs to think about inventory management.

When it comes to inventory, the goal is simple: maintain the perfect balance. You want enough inventory to fulfill orders and meet demand, but not so much that you’re drowning in storage costs or dealing with dead stock that ends up gathering dust. However, while the goal may be simple, achieving it is anything but. 

Why inventory management can make or break your business

Here’s a scenario that’ll hit close to home: imagine you own a backpack company. Customers want to buy your backpacks, but you’ve run out of stock. No backpacks means no sales, which means no revenue. Game over.

On the flip side, what if you ordered too many backpacks? Now you’re paying to store them, risking theft or damage, and if a newer, better backpack hits the market, you’re stuck with inventory nobody wants.

Both these scenarios can leave a business in a very sticky situation, and many companies, both big and small, fail because of inventory-related issues like these. 

Essential inventory management techniques you need to know

The world of inventory management offers numerous strategies, and the beauty is that you can mix and match techniques based on your specific needs. Let’s explore some of the most impactful methods:

ABC analysis

ABC Analysis follows the 80/20 rule, categorizing your inventory into three buckets. Your ‘A’ items are high-ticket, expensive-to-store products with lower profit margins. ‘B’ items fall in the middle, while ‘C’ items, typically representing just 20% of your inventory, are your money-makers, accounting for roughly 80% of your profits.

FIFO

First in First Out (FIFO) is a popular costing method that ensures older inventory moves before newer stock. It’s crucial when managing perishable goods or preventing obsolescence. Toyota popularized this approach with the philosophy that anything sitting on shelves has a higher chance of being lost, stolen, or becoming obsolete.

Just-in-time inventory

Walmart popularized just-in-time inventory management back in the late 90s. It was once the gold standard, focusing on having exactly what you need when you need it. However, recent supply chain disruptions have shown the risks of this approach. I’m sure we all remember the great toilet paper shortage of 2020.

Safety stock and reorder points

Consider safety stock and reorder points as your company’s insurance policy. Safety stock is your “just in case” inventory for unexpected demand spikes or supply issues, while reorder points trigger when it’s time to order more. Modern inventory management systems can automate these notifications, eliminating the headache of manual tracking.

The technology advantage: perpetual vs. periodic systems

Gone are the days of managing inventory with pen and paper (though believe it or not some businesses still do). Perpetual inventory systems provide real-time visibility into your stock levels, automatically updating as items come and go. This beats the old periodic approach, where you only knew your inventory levels when you physically counted everything.

What makes these systems even more powerful is the ability to track inventory across multiple locations, providing a clear view of which warehouse has which products at any given time. This level of visibility transforms how you fulfill orders and manage your supply chain.

Your next steps in inventory management

Understanding these fundamentals is just the beginning. Each technique we’ve covered has specific applications, formulas, and best practices that can dramatically impact your bottom line. The key is identifying which methods align with your industry, business model, and growth stage.

Want to dive deeper into these inventory management techniques? Check out our full episode where we break down the formulas, share real-world examples, and explore how different industries apply these strategies.

The post Secret Life of Inventory – Episode #1 – What is Inventory Management? (Learn the Basics & Techniques) appeared first on inFlow Inventory.

• The minimis exemption, which allowed imports under $800 to enter the US duty-free, is being eliminated in phases, with full termination codified for 2027.
• China and Hong Kong lost eligibility in May 2025, and as of August 29, 2025, de minimis treatment ended for all countries, subjecting all imports to duties and full customs scrutiny.
• The change significantly increases costs, compliance requirements, and processing delays, putting heavy strain on SMBs that rely on low-cost international sourcing.
• Businesses must now handle full customs documentation, accurate HTS code classification, potential bonding requirements, and choose between informal and formal entry types.
• Shipping strategies are shifting toward bulk orders, nearshoring and onshoring fulfillment, and regional distribution hubs, requiring more working capital and storage space.
• To adapt, businesses should diversify suppliers, explore nearshoring or onshoring, implement automation for compliance, optimize inventory management, and update financial planning to handle new cost structures and cash flow demands.

The global ecommerce landscape is about to face a monumental regulatory shift. The United States’ de minimis exemption, which has allowed packages valued under $800 to enter the US duty-free, is being systematically eliminated, with complete termination scheduled for 2027. This change poses a major threat to companies that have built their business around low-cost, direct-to-consumer shipping from overseas suppliers.

So, if your business relies on international suppliers, cross-border ecommerce, or low-value shipments, this article is for you. We’ll break down what the de minimis exemption is, what its elimination means to you, and lastly, how you can prepare for this major disruption.

What is the de minimis exemption?

For years, the de minimis exemption has been a cornerstone of international trade policy. It allows goods valued at $800 or less to enter the United States without paying duties or undergoing an extensive inspection process. The de minimis exemption is among the most generous globally after it was raised from $200 to $800 back in March 2016.

This system has done more than just reduce duty fees. It also simplified the entry process, requiring less documentation, resulting in faster processing times. Platforms like Temu, Shein, and AliExpress have thrived in this environment, flooding the US market with minimal regulatory oversight.

The original intent of the policy was to reduce the administrative burden on customs officials for items that wouldn’t generate significant revenue. However, the explosive growth of ecommerce in recent years has made de minimis a major trade policy issue.

The end of the de minimis exemption

The good news is, the elimination of de minimis isn’t happening overnight. The US government will be rolling it out in phases, and it’s vital to understand the timeline to help your businesses plan your transition strategy.

Phase 1: China and Hong Kong (Completed May 2, 2025)

The first significant restriction started in May 2025, when products originating from China and Hong Kong lost de minimis eligibility. Since Chinese goods represented 76% of de minimis shipments in 2024, this first phase has already had a massive impact on many businesses of all sizes. 

Phase 2: All Countries (August 29, 2025)

The Trump administration accelerated the timeline, eliminating de minimis treatment for all countries, which took effect on August 29, 2025. This means all imports, regardless of value or origin, now face applicable duties and enhanced customs scrutiny.

Phase 3: Legislative Codification (2027)

The recently passed “One Big Beautiful Bill Act” formally codifies the end of commercial de minimis shipments by July 1, 2027. This move will ensure the changes become permanent regardless of future administrative decisions.

Impact on ecommerce businesses

For companies that have built their business model around low-cost international sourcing, the elimination of de minimis exemption creates immediate and long-term challenges. These include:

• Increased costs: The end of di minimis couldn’t have come at a worse time for US businesses, who are already dealing with increased duties thanks to new tariffs. Every imported item now faces duties that could exceed 50% for certain Chinese goods. Businesses must decide whether to absorb these costs or pass them on to consumers.
• Market positioning: Increased costs have made it much more difficult for SMBs to stay competitive. Larger companies have a lot more resources and can absorb the new costs associated with the end of de minimis. The little guys, on the other hand, often operate with razor-thin margins which means they’re less likely to be able to absorb the massive increase in duties.
• Consumer behavior: When prices increase, people tend to spend less. It’s inevitable. Businesses must prepare for potential decreases in demand and adjust their financial projections accordingly.
• Documentation requirements: All shipments now require proper customs entry forms with accurate 10-digit Harmonized Tariff Schedule (HTS) codes. This eliminates the simplified Entry Type 86 process that many businesses used for smaller shipments.
• Processing delays: Enhanced customs scrutiny means longer processing times. Packages that previously cleared customs in a matter of hours may now be sitting for days or even weeks.
• Compliance burden: Businesses must ensure accurate product classification, proper documentation, and compliance with all applicable regulations. Mistakes can result in penalties, delays, or even shipment rejections.

New compliance requirements

The new costs associated with the elimination of de minimis exemption are just the tip of the iceberg. For many businesses, the introduction of complex compliance obligations is the real kick in the teeth. These include:

• HTS code accuracy: As mentioned above, you must classify every product with the correct 10-digit HTS code.
• Entry type selection: Businesses must choose between Entry Type 11 (informal) for lower-value shipments or Entry Type 01 (formal) for higher-value or regulated products.
• Bonding requirements: Many shipments now require customs bonds to ensure payment of duties and compliance with regulations.

The time commitment required to ensure compliance will eat away at your administrative fees and ultimately could cost you more than the duties themselves. 

International postal shipments

For packages sent through international postal networks, businesses face two duty calculation options. The first option is the ad valorem method, which applies the standard tariff rate based on the product’s country of origin and classification. The second is the specific duty method, which means you pay a fixed per-item rate ranging from $80 to $200 based on the applicable tariff percentage, though this option expires February 28, 2026.

How will the supply chain adapt to the end of the de minimis exemption?

The end of de minimis will force fundamental changes in how the global supply chain operates, especially for businesses that revolved around small, frequent shipments. Here are some of the most significant changes we’ll see in the coming weeks and months.

Changes to shipping strategies

The end of the de minimis exemption means bulk shipping is back, baby. Many businesses are making the shift from frequent small shipments to larger, less frequent bulk orders. This strategy is effective at reducing the per-unit duty cost but requires more working capital and storage space.

We’re also seeing more companies establish or expand their US-based fulfillment to avoid international shipping complications entirely. This represents a significant capital investment but provides long-term operational benefits.

Some businesses are even creating regional distribution hubs in countries with more favorable trade relationships. These centers act as intermediate points before final US delivery.

Changes to inventory management

The biggest change you’ll see in inventory management is the increase in required capital. Bulk purchasing requires more upfront investment in inventory, and larger inventory volumes demand more storage space.

Businesses will no longer have the amount of flexibility for quick reorders, which means accurate demand forecasting becomes critical to avoid stockouts or excess inventory. 

How can businesses respond to the end of de minimis?

There is no denying that the end of de minimis exemption has put many businesses in a sticky situation. However, forward-thinking companies have risen to the occasion and started to implement comprehensive strategies to adapt to the post-de minimis world.

Supply chain restructuring

• Supplier diversification: Reducing dependence on a single country or supplier helps mitigate tariff impacts and provides flexibility.
• Nearshoring initiatives: While onshoring may still be cost-prohibitive, nearshoring may be the next best thing. By moving production closer to the US market, such as to Mexico or Central America,  you can reduce shipping costs and complexity while maintaining lower duty rates.
• Onshoring initiatives: Where economically viable, shifting to US-based suppliers eliminates international shipping complications entirely. While this option seems attractive, the reality is that it’s just not possible in many cases. 

Technology and process improvements

• Automated classification: Tech-savvy businesses are investing in software that automatically assigns correct HTS codes, reducing compliance risks and processing delays.
• Inventory optimization: Advanced inventory management systems help with demand forecasting, real-time inventory visibility, and automated reorder points, which in turn will help cash flow management. These solutions can also better track the total cost of goods, including duties and compliance expenses, enabling more accurate pricing and profitability analysis.

Financial planning

• Cost structure analysis: Businesses must recalculate their cost structures to account for duties, longer shipping times, and increased compliance costs.
• Pricing strategy revision: When costs increase, so do prices. Adjusting product pricing to maintain profitability while remaining competitive in the market is key.
• Cash flow management: Bulk purchasing and longer lead times require more sophisticated cash flow planning and potentially additional financing options.

Conclusion

The elimination of de minimis exemption isn’t just about increased duties—it’s about a fundamental overhaul of how international commerce operates. Companies that embrace this change and adapt their strategies accordingly will position themselves for long-term success in the evolving global marketplace.

For businesses managing complex international supply chains, having robust inventory management systems becomes even more critical. Tools that can track costs, manage compliance requirements, and optimize inventory levels will be essential for navigating the post-de minimis landscape successfully.

The post The End of De Minimis: How Businesses Can Adapt appeared first on inFlow Inventory.

• Barcode label protection is important because damaged or faded barcode labels can slow operations, increase costs, and harm inventory accuracy and customer satisfaction.
• UV exposure, extreme temperatures, moisture, frequent handling, abrasive surfaces, and chemicals are the most common causes of failed barcode scans.
• Synthetic materials like polypropylene and polyester offer greater durability than paper, while specialized labels handle extreme or unique conditions.
• Protective options such as UV coatings, lamination, and barcode label protectors help extend label lifespan.
• Placing labels on clean, smooth, flat surfaces and avoiding seams, curves, and high-touch areas will improve longevity and scan reliability.
• High-quality printers and scanners, along with regular test scans, ensure consistent barcode readability.

When it comes to inventory management, barcodes still reign supreme. However, their usefulness hinges on whether or not they can scan properly. Just one faded, smudged, or damaged barcode can bring your operations to a standstill, causing errors, delays, and frustrated employees.

The good news? Protecting your barcode labels doesn’t require a massive investment or complex procedures. With the right materials and proper placement techniques, you can ensure your barcodes remain scannable for years to come.

In this guide, we’ll walk you through everything you need to know about protecting your barcode labels. From choosing durable materials to proper placement best practices. So if you’re curious how to extend the life of your barcode labels, you’ve come to the right place.

Why barcode label protection matters for small businesses

Before diving into barcode label protection strategies, it’s important to understand what’s at stake. When barcode labels fail, the ripple effects can impact every aspect of your operation. Here’s how damaged or faded barcode labels can impact your business.

Operation slowdown

Unreadable barcodes force employees to enter product information manually, slowing down processes like receiving, picking, and shipping. When this happens, you’re going to lose time and open yourself up to the possibility of human error.

Increased costs

When your barcode labels fail, you’ll need to replace them, which means additional materials and labor costs. This may not seem like a big deal at first, but over time, these resources are going to add up quickly. More importantly, the downtime caused by scanning issues can cost far more than the cost to replace your barcode labels.

Customer satisfaction

Scanning issues in warehouses can lead to shipping errors and delayed orders. In retail environments, damaged barcodes can create chaos at the checkout. Both situations will result in unhappy customers.

Inventory accuracy

When barcodes become unreadable, tracking inventory becomes incredibly difficult. The ripple effect of this can lead to poor demand forecasting, which can, in turn, cause stockouts or excess inventory.

Common causes of barcode label damage

For effective barcode label protection, you’ll first need to know what the most common causes of damage are. Here are the usual suspects.

Environmental factors

• UV Exposure breaks down both ink and adhesive over time, causing labels to fade and peel. This is particularly problematic for products stored near windows or in outdoor environments.
• Extreme temperatures can weaken adhesives and cause labels to curl, crack, or fall off entirely.
• High humidity and moisture can cause labels to lose adhesion, while direct water exposure can smudge ink and make barcodes unreadable.

Physical damage

• Frequent handling of products will cause barcode labels to wear from friction and contact with other surfaces.
• Abrasive surfaces such as rough packaging materials, concrete floors, and metal shelving can scratch or tear labels during normal operations.
• Chemical exposure from cleaning products, oils, and other solutions can dissolve adhesives or damage label materials, particularly in industrial environments.

Choosing the right label materials

Protecting your barcode labels starts with assessing your specific environment and use case. Will your labels be exposed to sunlight? Extreme temperatures? Rough handling? From there, you’ll be able to choose which label material is appropriate. 

Paper vs. synthetic materials

While cost-effective, paper labels are best suited for indoor environments with minimal handling. They’re lifespan is considerably shorter than other types of materials, so you should only use them for products with short shelf lives or temporary labeling.

On the other hand, synthetic materials like polypropylene and polyester labels offer superior durability and resistance to moisture, chemicals, and physical wear. This increased durability comes with a higher upfront cost, but these labels will have a much longer lifespan and provide better long-term value. 

Specialized label options

If you’re storing inventory in outdoor or high-humidity environments, weatherproof labels are your best friend. These labels resist water damage and maintain their adhesion even in the most challenging environments.

For those working in industrial environments, you should consider chemical-resistant labels. These can withstand exposure to oils, solvents, and cleaning chemicals without degrading. 

Cold storage environments will need specialized freezer-grade labels. The adhesive on these labels is designed to maintain their bond at low temperatures and won’t become brittle once frozen.

If you need increased security on high-value items, tamper-evident labels show clear evidence if anyone attempts to remove them. These are a great option that provides both protection and security.

Protective coatings, lamination, and label protectors

Sometimes, no matter what type of label you choose, you’re going to need some added barcode label protection. Luckily, there are options out there to add protective layers to your barcode labels, which will significantly extend their lifespan.

UV-resistant coatings

For labels exposed to sunlight or bright artificial lighting, UV-resistant coatings prevent fading and maintain barcode readability. These coatings are great for retail displays near windows, outdoor storage, and products stored in transparent containers.

Lamination

Laminating barcode labels creates a protective barrier against moisture, UV rays, and physical damage. The transparent protective film prevents scratches and makes labels easier to clean without damaging the barcode itself. 

Barcode label protectors

If you want the benefits of lamination without the headache of having to laminate multiple labels, then label protectors are the next best thing. These transparent, adhesive coverings, made of durable materials like mylar or vinyl, shield printed labels from wear and tear. They guard against moisture, smudging, fading, tearing, and chemical damage, ensuring that labels remain legible over time—even in demanding environments such as warehouses, or industrial facilities.

Strategic label placement

Where you place barcode labels significantly impacts their longevity and scannability. Poor placement can expose labels to wear and tear through unnecessary handling. Always place barcode labels on a surface that will be scannable without having to move the item around. 

When you apply labels, ensure the surface is clean and dry. Also, avoid dust, grease, and moisture to prevent reduced adhesion, which can cause labels to fail prematurely. Labels adhere best to smooth, flat surfaces. Avoid textured areas, seams, or curved surfaces whenever possible.

Lastly, consider the temperature of the environment. Apply labels when both the surface and atmosphere are at moderate temperatures. Extreme heat or cold during application can affect adhesive performance.

Here are some common placement mistakes to avoid:

• Placing labels over seams or edges.
• Positioning labels on curved surfaces that distort the barcode.
• Placing labels where they’ll be covered by other packaging or equipment.

Hardware considerations

How long a barcode label will last starts with print quality. A crisp, high-contrast barcode is easier to scan accurately. Some printers produce sharper, higher-quality barcodes than others, and the same goes for scanners. Higher-quality scanners can read barcodes faster and more reliably, even when slightly faded and worn.

For dependable results, tools like the inFlow Portable Printer ensure clean, consistent barcode printing, while the inFlow Smart Scanner delivers fast, accurate scanning to keep your workflows moving smoothly.

Pro tip: Try to perform test scans on your newly printed barcodes whenever you can. Catching print issues early can save hours of troubleshooting later.

Measuring barcode label protection effectiveness

Like anything in business, you should always track the success of your barcode label protection efforts. This will help you identify what works best for your specific use case. Some key metrics to keep in mind are:

• Label lifespan—Monitor how long labels remain scannable in different environments. 
• Replacement frequency—Track how often labels need replacement to identify problem areas or successful protection strategies.
• Scanning success rate—Monitor barcode scanning success rates to identify declining performance before complete failure.

Use performance data to refine your protection strategies, focusing resources on the most effective approaches for your specific needs.

Conclusion

Barcode label protection is an investment in operational efficiency, cost control, and customer satisfaction. When you choose appropriate materials and implement proper placement techniques, your businesses can ensure their barcode systems remain reliable and cost-effective. If you want to know how the right software can amplify the benefits of your barcodes, then check out inFlow. Our software has a built-in barcoding system and comes with loads of other great features, including reorder points, real-time inventory tracking, purchase and sales orders, and a whole lot more.

The post How to Protect Your Barcode Labels: A Complete Guide for Small Businesses appeared first on inFlow Inventory.

• The difference between 1D vs 2D barcodes lies in how each stores data. 1D barcodes store data linearly and are read from left to right, while 2D barcodes store data on both the x and y-axis.
• 2D barcodes feature built-in error correction, making them more reliable even if partially damaged. They can also store more data while often being smaller than 1D barcodes.
• 1D barcodes are more affordable and widely supported, whereas 2D barcodes require barcode scanners with a 2D imager and software that supports 2D barcodes.
• Both types of barcodes have plenty of real-world use cases. 1D barcodes remain dominant in retail, inventory management, shipping, and manufacturing, while 2D barcodes are increasingly used in healthcare, ecommerce, marketing, and interactive product packaging.
• Businesses moving to 2D barcodes may need to upgrade their hardware, change their workflow, and train their employees, especially if they rely on older laser-based scanners.
• inFlow supports both 1D and 2D barcodes, offering barcode generation, custom label printing, and scanning to help businesses improve accuracy and streamline inventory management.

Of all the business tools in use around the world, none are quite as widespread as barcodes. They’ve been a cornerstone of business operations since their introduction in the 70s, and that doesn’t appear to be changing anytime soon. That’s not to say that barcodes won’t continue to evolve. With technological advancements, we’re starting to see a shift from the 1D barcodes that have dominated the landscape to 2D barcodes.

As the barcoding landscape changes, many businesses are curious about the differences between 1D vs 2D barcodes. So, today, we’ll be going over those differences and why you might want to consider using one over the other.  

1D vs 2D barcodes: what’s the difference?

In super simple terms, 1D vs 2D barcodes can be broken down into how each stores data. Barcodes may look like meaningless black-and-white patterns to the human eye, but machines can read them instantly.

You can think of a 1D barcode as reading a book. There’s really only one correct way to read it: left to right. Similarly, barcode scanners read 1D barcodes in a single, linear order. For this reason, we sometimes call them linear barcodes. These are the barcodes traditionally found on product packaging, shipping labels, and inventory tags. 

2D barcodes work a bit differently. Rather than a single, linear orientation, they store information on both the x and y-axis. While this makes them more complex, it also means they can hold much more data. 

For example, the most common 1D barcode is the universal product code (UPC), which can hold up to twelve characters. By comparison, the QR code, a popular 2D barcode, can hold up to 7089 characters, depending on the character type.

Despite this difference in data density, 2D barcodes are often physically smaller than their 1D counterparts. 

What other differences are there between 1D and 2D barcodes?

Of course, as the newer of the two barcode types, 2D barcodes have a few extra features. One of the most notable ones is error correction. 2D barcodes use Reed-Solomon error correction to fill in the gaps and recover lost data. This makes their error rate much lower despite carrying many times more characters. 

Similarly, 2D barcodes tend to be more readable despite their size. This makes them better suited for applications requiring speed and accuracy.

2D barcodes can be more expensive

While 2D barcodes are overall more capable, one point in favor of 1D barcodes in the 1D vs 2D barcodes debate is their affordability. 

This has more to do with the technology needed to read 2D barcodes than the format itself. Because 2D barcodes store data on two different planes, scanners read the information differently. This means not all barcode scanners can read both 1D and 2D barcodes, and the ones that can are usually more expensive. 

In fairness to 2D barcodes, though, the price gap between the two formats has shrunk dramatically. And this hasn’t gone unnoticed. GS1, the official supplier of global barcodes, plans to move over entirely to 2D barcodes by 2027. That’s one of the great things about technology. As it improves, it tends to become more affordable as well.

Overall, 2D barcodes are more versatile than 1D barcodes, so it’s no real surprise that 1D barcodes are slowly being phased out. For now, though, they have their place. 

Real-world use cases: 1D Barcodes

What makes 1D barcodes so great is their accessibility. While you’ll still need to purchase official GS1 barcodes to sell your products in any major retailer, you can create your own barcodes for other purposes. Here are some of the most common use cases for 1D barcodes:

• Retail & Point of Sale (POS)— UPC and EAN barcodes are the standard for product labeling in retail stores across the globe. These 1D barcodes enable fast and accurate checkout and help businesses track their inventory levels in real time as they make sales. 
• Warehousing & Inventory Management—Barcode symbologies such as code 39 and code 128 are great 1D barcode options for internal inventory management. You can create these barcodes using a free online barcode generator or font, making them attractive to small businesses on a tight budget. These barcodes are great for receiving, picking, packing, and shipping.
• Shipping & Logistics—1D barcodes are essential for tracking shipments and managing supply chain logistics. Businesses can scan barcodes to monitor parcel movement and delivery status in real time. 
• Manufacturing & Assembly—Production facilities handle a lot of inventory due to all their raw materials, intermediate goods, and finished products. 1D barcodes are an inexpensive way to track these items as they travel through the manufacturing process. 

Real-world use cases: 2D Barcodes

The added character count of 2D barcodes brings many more possibilities. Some of these use cases are:

• Product Packaging—QR codes have started to be implemented on product packaging to link customers to instructional videos, nutritional facts, reviews, promotional offers, and more. 
• Ecommerce—Just because you don’t have a physical store doesn’t mean you can’t reap the benefits of barcodes. Ecommerce shops can use 2D barcodes for digital receipts and even mobile payments. 
• Healthcare—Hospitals and labs are environments where having more information readily available is invaluable. That’s why we see 2D barcodes on patient wristbands and charts that store medical histories and medications. Medication packing also uses 2D barcodes to track expiration dates, lot numbers, and dosages. 
• Advertising & Marketing—QR codes are popping up everywhere these days, from posters and advertisements to restaurant menus. We can use them to claim promotional codes, access social media pages, or place an order at a restaurant. Since 2D barcodes are capable of storing URLs, the possibilities are endless. 

Transitioning from 1D barcodes to 2D barcodes

If you’re already using 1D barcodes and considering switching to 2D barcodes, there are some common roadblocks you should keep watch for.

Hardware upgrades

We mentioned above that scanners need a 2D imager to read 2D barcodes. Many older laser scanners don’t have this feature, so you may have to replace all your barcode scanners.

The good news is that smartphones can scan QR codes with their cameras, so if you’re strapped for cash, you can get by using your cellphone. This is a great option for inFlow users since we have a mobile app, which means you can scan your items right inside of inFlow from one device. 

Barcode printers are another piece of hardware you should consider upgrading to ensure the best print quality. While 2D barcodes make use of error correction, they’re not foolproof. A greater data density also means more opportunities for corruption or damage. A smudge or two might not make a difference, but error correction can only compensate for so much. Ensuring print quality might require more upfront costs but could save time- and money- in the long run. 

For best results, use a printer specifically designed for the job. The inFlow Portable Printer delivers crisp, high-resolution labels that ensure 2D barcodes remain scannable, even in tough warehouse conditions. It’s compact, wireless, and designed to handle both 1D and 2D barcode printing. It’s perfect for warehouses, job sites, and on-the-go use.

Workflow adjustments & employee training

Not all systems and workflows support 2D barcodes. This could require a major overhaul of your systems, software, and workflows. Additionally, if you introduce new hardware or equipment, more training will be necessary to bring everyone up to speed. 

Depending on your industry, you may also need to consider potential regulations. It’s your duty to know what those regulations are and ensure compliance. This may include the need for additional employee training, such as in the healthcare industry, where sensitive patient information is commonly involved. 

How inFlow can help with both 1D and 2D barcodes

No matter which type of barcode you choose, having the right software is crucial. Our software inFlow is built to support both 1D and 2D barcodes. With inFlow, you can:

• Generate barcodes for products, locations, or asset tracking. 
• Design and print custom barcode labels with our built-in label designer.
• Scan barcodes with your mobile device, the inFlow Smart Scanner, or any other barcode scanner. 

By leveraging inFlow’s barcode inventory system, businesses can improve their accuracy and optimize inventory tracking and order fulfillment. Whether you use UPC, Code 39, or QR codes, inFlow has you covered.

The post A Comparison of 1D vs 2D Barcodes Every Business Should Know appeared first on inFlow Inventory.

• The make-to-order (MTO) manufacturing process involves producing products only once an order is placed.
• In contrast, make-to-stock (MTS) production is done in bulk based on demand forecasts to ensure availability.
• MTO allows customization, minimizes waste, and reduces storage needs, but it also has longer lead times, higher costs, and complex order management.
• MTS leads to lower production costs, bulk purchasing advantages, and faster fulfillment, but it requires accurate forecasting to avoid excess inventory and storage constraints.
• Make-to-order is ideal for high-cost, customizable, or perishable products, whereas MTS suits mass-market items with steady demand.
• Success with MTO relies on understanding customer needs and closely monitoring production quality.
• Make-to-stock businesses rely on accurate demand forecasting, leveraging economies of scale.
• Regardless of your manufacturing process, every business can benefit from manufacturing software to better track its workflow. 

If you work in manufacturing or assembly, choosing the proper manufacturing process can be the difference between profitability and operating at a loss. This is because not every manufacturing process is suitable for every product. For example, a business that sells custom furniture will undoubtedly have a different process than a company that manufactures cell phones. For this reason, there are several different manufacturing processes, each with its own unique use case.

Today, we’ll focus on two distinct manufacturing processes: make-to-stock (MTS) and make-to-order (MTO). We’ll discuss the differences between the two, offer advice on which might be suitable for your products, and review some best practices to help you get started. 

What is make-to-order (MTO)?

For the most part, make-to-order is precisely what it sounds like. Instead of producing in bulk, businesses manufacture their orders as they come in. This approach allows companies to tailor their products to their customer needs. It also dramatically reduces the risk of overproduction. 

Benefits of make-to-order 

As with any business model, make-to-order has both benefits and downsides. Here are some of the benefits of make-to-order:

• Reduced Storage Demands—make-to-order manufacturing only occurs when you receive an order, so you don’t need to store as many raw materials. Additionally, since every product you produce has already been sold, there is little need to store finished goods. 
• Less Waste—demand-driven production minimizes the risk of your products becoming obsolete, lost, or even stolen. 
• Customization & Personalization—low-volume production runs allow you to customize your products according to your customers’ needs. 
• Adaptability—make-to-order will make your business much more agile. You’ll be able to pivot more quickly to meet shifting customer demands. 

Drawbacks of make-to-order

As always, some downsides come along with make-to-order production. Here are some of the biggest ones to consider:

• Longer Lead Times—producing products only when an order comes in means it will take longer for your customers to receive the product they ordered. In today’s world of Amazon’s same-day delivery, this could prove problematic.
• Higher Production Costs—small batch production can lead to higher per-unit costs compared to mass production.
• Complex Order Management—as we mentioned earlier, make-to-order products tend to be more customizable, which makes managing these orders much more difficult.
• Limited Scalability—small production runs and highly personalized products mean scalability will be near impossible without a substantial investment.

What products are best for MTO?

As a good rule of thumb, expensive products designed to be customizable are suitable for make-to-order manufacturing. Examples include custom computers or furniture with various potential configurations. 

However, many other products would benefit from an MTO production strategy—for example, perishable items such as food and pharmaceuticals. Take a chocolate manufacturer, for instance. The freshness of their products is paramount, so mass production without orders to fill may not be the best idea since the quality of their chocolate will diminish over time. 

MTO best practices

Knowing what MTO is and how to implement it are two different things. Here’s some best practices to help you bridge that gap. 

Understand your customer’s needs

As we said above, make-to-order tends to favor expensive, customizable products. Understanding what your customers need and how to provide that with your product is key. For instance, let’s look at a company that provides components for data centers. While all data centers generally function similarly, the racks, cooling solutions, and drives required may differ according to needs.

Keep a close watch on your manufacturing process 

Quality products are essential, and that goes doubly so for custom ones. Customers who pay a premium to get exactly what they’re looking for demand a certain level of quality. This is why it’s vital to monitor your manufacturing process closely. The best way to do this is to use manufacturing software. 

It’ll track things as they move through the manufacturing process, ensuring quality and timely delivery. Systems with barcodes are another excellent boon and help track every individual component throughout the manufacturing process.

Consider adopting lean manufacturing

We’ve discussed lean manufacturing before, so we won’t go too in-depth. To summarize, lean manufacturing is a process that aims to streamline and optimize every stage of manufacturing. It can help reduce waste, defects, and operating costs if done correctly.

What is make-to-stock (MTS)?

When someone hears “manufacturing, ” make-to-stock (MTS) is probably the first thing that comes to mind. Rather than manufacturing products as orders come in, make-to-stock manufacturers produce large batches all at once and store them for future demand. This production strategy relies heavily on demand forecasting to determine optimal stock levels. 

Benefits of make-to-stock

The make-to-stock production strategy has been widely adopted in the manufacturing industry because of its vast array of benefits. Some of these benefits include:

• Shorter Lead Times—producing products en masse means you’ll have plenty of inventory ready when an order comes in, expediting your order fulfillment process.
• Lower Production Costs—mass production runs lower production costs through economies of scale. The result is a lower cost per unit. 
• Bulk Purchasing Advantages—when you manufacture large quantities of products simultaneously, you’ll need a lot more raw materials, and businesses can negotiate better prices with suppliers on high-volume purchases. 
• Increased Sales Volume—the ability to produce more inventory means you can sell at a much higher volume.

Drawbacks of make-to-stock

The make-to-stock production strategy isn’t perfect and comes with several downsides. Some of those include:

• Storage Space Constraints—if you use the MTS production strategy, you’ll need large amounts of raw materials ready at a moment’s notice. Not to mention, if you’re creating products in bulk, you’ll need to store your finished goods until they are sold. 
• More Waste—with high levels of stock to manage, there is a greater chance that things may become obsolete, damaged, lost, or stolen. Even a small mistake in forecasts may result in a ton of excess inventory. 
• Limited Customization—make-to-stock relies on manufacturing products beforehand. This production strategy leaves little room for customization, so making changes based on customer preferences will be difficult. 
• Slow Response to Market Changes—if your business operates with an MTO production strategy, you might find it hard to adjust production or pricing if there is a sudden shift in customer sentiment.

What products are best for MTS?

Because of its batch production methodology, make-to-stock is suitable for products with a consistent demand. For example, consumer electronics, small toys, and everyday household items. 

For instance, a business that manufactures silicon kitchen utensils can confidently mass-produce spatulas since every customer wants the same thing. Something simple that serves a specific function.

Best practices for make-to-stock

While MTO may be the most “traditional” manufacturing process, implementing it efficiently isn’t easy. Here are some best practices to help you get started. 

Invest in accurate forecasting  

Accurate forecasting is crucial for any make-to-stock business. It ensures that you maximize profits, all while reducing risk and avoiding over or understocking. If there’s one takeaway from this segment, it should be this one. 

Take advantage of economies of scale wherever possible

Economies of scale refer to the fact that, typically, manufacturing larger batches drives down the per-unit price. This is a massive benefit to manufacturers who can take advantage of it. It reduces operating costs and also results in a higher per-sale profit. However, doing so carries some risks and depends on accurate forecasting.

Track your manufacturing process

Whether your manufacturing process is make-to-order, make-to-stock, or assemble-to-order, tracking your production process is key. This is why all manufacturers can benefit from manufacturing software. It’ll help keep close tabs on every stage of the process.

Wrapping up

Choosing between make-to-order, make-to-stock, or any other manufacturing process depends on various factors, including product type, demand, and storage capabilities. While MTO can reduce carrying costs and waste, it requires incredibly efficient order processing and production scheduling. 

On the other hand, MTS ensures your business always has products ready to meet demand, but your overhead costs will suffer. You also run the risk of overproduction and being left with deadstock. 

It’s essential to weigh all your options before deciding which production strategy suits you.

The post The Impact of Make-To-Stock vs. Make-To-Order in Manufacturing appeared first on inFlow Inventory.

• Proper inventory accounting involves tracking all materials, including raw materials, work-in-progress, and finished goods. 
• Inventory accounting aims to ensure that all financial records are accurate and up to date. 
• Which inventory costing method you choose will have a major impact on your inventory accounting.
• The three most popular inventory costing methods are first-in-first-out (FIFO), last-in-last-out (LIFO), and moving average. 
• Another key metric involved with inventory accounting is cost of goods sold (COGS).
• COGS helps businesses determine the direct costs associated with producing or purchasing the goods they sell.
• Some inventory accounting best practices include cycle counts, adopting inventory software, and standardizing processes.   

Accounting for your inventory can be tricky! You have to be sure to include your raw materials, work in progress, as well as the finished goods that you have on site. Your inventory is considered a business asset, so whoever does your accounting will need accurate valuations to avoid issues on your balance sheet.

Today, we’ll focus on everything related to inventory accounting, including costing methods, cost of goods sold (COGS), and more. So, let’s put on our bookkeeping hats and get started! 

What is inventory accounting?

Simply put, inventory accounting is the process of tracking, managing, and adding value to your inventory to ensure accurate financial records. For proper inventory accounting, you’ll need to consider things like costing methods and COGS. These metrics are pivotal for your accountant when calculating numbers like the markup on your products.

Your inventory also directly correlates to your income earned (and therefore income tax) since you document the inventory you sell as an expense. Effective inventory accounting helps businesses:

• Maintain accurate financial records.
• Calculate taxes.
• Determine profit margins.
• Avoid stockouts or excess inventory.
• Make informed procurement decisions.

How do inventory costing methods impact accounting? 

Which inventory costing method you choose will significantly impact your financial statements and tax obligations. Businesses can choose from several inventory costing methods, the most common being first-in-first-out (FIFO). Other methods include last-in-first-out (LIFO), weighted average cost, and the specific identification method. Let’s take a closer look at each and how they will impact your inventory accounting.

First-in-first-out (FIFO)

The FIFO method assumes you always sell the oldest items in your inventory first. Essentially, you sell your products in the order you procure them, hence the name first-in-first-out. Most companies use FIFO for their inventory accounting, which usually offers lower COGS and higher profits. However, this costing method also may increase tax liabilities.

Example: Let’s say we own a furniture store and buy 25 office chairs for $25 each. A month later, we purchased 25 more office chairs, but this time for $30 each. We then receive an order for 30 office chairs for $1800. Using the FIFO inventory costing method, we would first use the 25 office chairs worth $25 each, and the remaining 5 chairs would come from the shipment that cost $30 each. This would bring the total cost of the chairs to $775, with a profit margin of $1025.   

Last-in-last-out (LIFO)

With the name last-in-first-out, I’m sure you may be able to guess how LIFO works. In the LIFO method, you assume that the items bought last are the ones that are sold first. This inventory costing method doesn’t typically follow the natural flow of inventory but can be advantageous in times of inflation, as it leads to higher COGS and lower taxable income. 

Example: To return to the example above, let’s say our business uses LIFO instead of FIFO. In that case, we would first take the 25 chairs from the $30 shipment and then the last 5 from the $25 shipment. This would bring the total cost of the chairs to $875, with a profit margin of $925. 

It’s important to note that the International Financial Reporting Standards (IFRS) has banned this costing method. 

Moving average costing

Moving average costing recalculates the average cost of each inventory item in stock after every purchase. The calculation takes the total cost of the purchased items divided by the number of items in stock. This costing method is effective at smoothing out price fluctuations and providing a balanced approach to inventory valuation.

Example: Using the above example, let’s examine how moving average costing impacts inventory accounting. First, we would divide the total cost for both shipments by the number of chairs purchased. This would give us a moving average of $27.50, meaning the total cost of the chairs is $825, with a profit margin of $975.

Specific identification method

This method keeps the cost of each and every item you have in your inventory. It’s typically only used for very high-cost and unique items such as cars or rare diamonds.

Example: Let’s say our furniture store also sells rare hand-crafted mahogany tables. Over a few months, we purchased 6 tables at various prices. For the first table, we paid $1000, then $1100, then $1200, and so on. We then sold 3 of those tables for $5000, to which we gave them the first 3 tables we purchased. Thus, the total cost of the tables is $3300, with a profit margin of $1700.

Why COGS is important to inventory accounting

Your cost of goods sold (COGS) is basically the cost of the items you sold over a time period. It affects taxation as businesses can deduct their COGS from revenue to lower their taxable income. Cost of goods sold also helps businesses evaluate their overall profitability and pricing strategies. The formula for COGS looks like this:

Breaking the formula down piece by piece, here’s what we get:

• Starting inventory—This represents the value of inventory a business has at the start of an accounting period, including any unsold items carried over from the previous period. 
•  Purchases—This represents the total cost of all inventory items during the accounting period. It may include expenses related to acquiring the inventory, such as shipping, taxes, and handling fees.
• Ending inventory—This represents the value of any unsold inventory during the accounting period.

Example: To return to our furniture store example, let’s examine the cost of goods sold for the office chairs we mentioned. We started our accounting period with 50 office chairs, with a total cost of $1375. We spent $300 on shipping and other fees related to that inventory. After the accounting period, we sold 30 of our 50 office chairs. For this example, let’s assume we’re using the moving average costing method, which means the chairs cost $27.50 each. Therefore, our COGS would be:

($1375 + $300) – $550 = $1125 

As the above example shows, the inventory costing method you choose will impact your COGS and, ultimately, your inventory accounting. 

Inventory accounting best practices

Everything mentioned above are just some of the many things you’ll need to consider when accounting for inventory. We get it. It can be pretty overwhelming, but we have some tips and tricks to help you keep your head above water:

1. Use inventory management software—You don’t use spreadsheets or a pen and paper when managing your inventory for the same reason you don’t use an abacus for arithmetic. Software solutions like inFlow have features that make inventory accounting a breeze.
2. Perform regular audits—Cycle counts are a pain. They’re time-consuming and sometimes require you to pause your business operations completely. However, we can’t stress enough how vital they are for accurate inventory accounting.
3. Monitor stock levels—When you order excess inventory, you will run into all kinds of complications when it comes to your accounting. Monitoring your stock levels as closely as possible can help prevent this. 
4. Standardize procedures—Standardization is valuable in all aspects of business, including inventory accounting. Establish clear policies for accounting, inventory tracking, purchasing, and valuation.
5. Leverage reports—If you’re using inventory software, chances are you’ll have loads of reports you can generate with just a few clicks. Take advantage of them!

Simplify your inventory accounting with inFlow

Accounting for inventory doesn’t have to be a headache. Like anything else in the modern day, you can always leverage software to make your life easier. Our software inFlow is perfect for anyone looking to automate their inventory accounting. For example, you can choose from a number of different costing methods for your products, such as LIFO, FIFO, and moving average. From there, inFlow can automatically calculate your COGS—no need for a formula. 

inFlow also integrates seamlessly with QuickBooks Online and Xero, offering a two-way payment sync option. This makes it easy to synchronize inventory data with accounting records and ensures that financial statements remain accurate.

Additionally, inFlow offers robust reporting features that will give you insights into your cost of goods sold (COGS), inventory movements, and profitability.

By leveraging inFlow, your business will gain comprehensive inventory and accounting features that you can use to improve your financial health.

The post How to Optimize Your Inventory Accounting and Boost Profits appeared first on inFlow Inventory.

• A tariff is a tax imposed by a government on goods imported into their country. Understanding how tariffs work is essential for comprehending international trade policies.
• The purpose of tariffs is to stimulate the local economy by encouraging consumers to buy locally. 
• While tariffs are imposed on businesses, the additional costs associated with them are typically passed down to the consumer through price hikes, making all imported goods more expensive. 
• The Trump Administration intends to place a 25% tariff on goods imported from Mexico and Canada and a lower 10% tariff on energy resources.  
• Supply chains will likely see substantial changes when the tariffs go into effect. 
• To mitigate the impacts of tariffs, companies should consider stockpiling inventory, reassessing supply chains, and exploring ways to reduce operating costs.  

Politics is a tricky subject and one we tend to avoid around here. But regardless of your political beliefs, Donald Trump, the new President of the United States, has taken office and plans to shake things up worldwide for businesses. In fact, he’s already gone to work, levying a 25% tariff on all trade from Mexico and Canada, with a lower 10% tariff on energy resources. This announcement has many businesses worried.  

This tariff was initially planned to take effect at the beginning of February but was postponed, giving time for more negotiations. But as of March 4, they have officially begun. With the Trump Trade War kicking off, businesses in North America are scrambling to determine what this means for their operations’ future.

Today, we’ll go over how tariffs work, who pays tariffs, and what they mean for your business. So, if you’re looking to protect your business from the possibility of tariffs in the future, you’ve come to the right place.

What is a tariff?

A tariff is a tax imposed by a government on imported goods and services. Some tariffs are ad valorem (a percentage of the product’s value), while others are specific (a fixed fee per unit). Governments often impose these taxes on particular imports. For example, President Trump recently announced a 25% tariff on all steel and aluminum imports coming into the US. This means any country that sells steel or aluminum to the US will be subject to this 25% tax.

In addition, tariffs can stack. For instance, the steel tariff would be on top of the 25% tariff announced on all goods from Canada and Mexico. This would mean that steel and aluminum imported to the US from either Canada or Mexico would be subject to a 50% tax. 

How do tariffs work?

As mentioned above, tariffs are taxes on products imported from other countries. If your business operates in Canada and sends products to customers in the US, you would be subject to these trade tariffs. The revenue from these tariffs would go directly to the government to help fund infrastructure, military spending, etc.  

Tariffs are usually valorem, a percentage of a product’s value, such as 25%. However, certain products may have a specific tariff (fixed price). Sometimes, a government implements exceptions to help protect certain businesses. For example, a tariff may have a loophole that excludes orders under a specific dollar amount.

What is the goal of a tariff?

Governments typically use tariffs to protect domestic industries by making foreign products more expensive. The idea behind this is that, in theory, tariffs encourage industries to purchase and manufacture products locally.

However, according to the White House, these new tariffs on Canada and Mexico are related to border security, particularly stopping the flow of illegal immigrants and fentanyl. It’s worth mentioning that many politically savvy individuals aren’t buying this reasoning. Instead, they believe the President is merely using this as an excuse to declare a state of emergency. A national security threat allows the sitting president to impose tariffs without direct congressional approval. 

Trump has also called for Canada to become the 51st state to avoid these proposed tariffs, making these tariffs a form of economic warfare.   

Who pays for tariffs?

It’s a common misconception that businesses pay for tariffs. While this is technically true, the reality is a bit different. Businesses operate with razor-thin margins, and every expense is accounted for when pricing their products. Therefore, the cost of tariffs is passed onto the consumer through price increases. This essentially means all goods from foreign countries will increase in price equivalent to the value of the tariff.

So, for instance, if you live in the US and purchase a product from Canada that was once $1000, you’ll now be paying $1250. Depending on a business’s gross profit margin, it may be possible to absorb some of these expenses but not all.

On the surface, a price increase may seem good for businesses. After all, it means more revenue. However, they will undoubtedly experience a decrease in sales as their customers look for locally sourced alternatives.  

In short, everyone pays for tariffs in one way or another. That’s just how tariffs work. 

Do tariffs work?

The short answer is no, not really. We know this because this is not the first time the United States has done this to its closest trading ally. In the late 19th century, the McKinley Administration made a similar push to make Canada part of the U.S. Their weapon of choice? A tariff. 

However, the result was far from what they desired. Rather than weakening Canada to the point of annexation, the tariff pushed them to do more business with Britain. The effects have persisted long into the modern day, considering Britain is the United States’ main economic rival. 

Another unforeseen effect was that many US manufacturers moved to Canada to avoid the tariffs altogether. 

At the time, Canadian Minister of Trade and Commerce Mackenzie Bowell said, “Our neighbors are cutting off their noses to spite us.”

What other effects will tariffs have on businesses?

There’s no two ways about it: tariffs make things more complicated for businesses. Here are some effects that you’re likely to see.

Increased operating costs and prices

The increased costs caused by tariffs have a ripple effect throughout every industry. This is because tariffs affect not only the products themselves but also the raw materials. We mentioned that Trump plans to impose a 25% tariff on imported steel and aluminum. Both metals are crucial to the construction and manufacturing industries. So, even if a company manufactures its products in the US, it will likely source some of its materials from Canada or Mexico.

Check out this clip from our latest podcast episode, where we discuss tariffs and their impact on small businesses.

Supply chain disruptions 

In the best of times, supply chains can run precariously, so it shouldn’t be surprising that tariffs threaten to break them. Previously robust supply lines may dry up, and many others may become completely unavailable. 

Retaliation 

Retaliation in this context means governments implementing retaliatory tariffs or legislation to get back at one another. A tit for tat, so to speak. Geopolitics can be messy; unfortunately, businesses get caught in the middle. When one government issues a tariff, other governments must respond in one way or another.

Reduction of imports 

If importing goods to the US becomes less profitable, fewer companies will do it. That’s another basic tenant of business. If a business can make $2 selling in the US or $3 selling in Europe, they’re going to sell in Europe. 

How can you prepare for tariffs?

Unfortunately, mitigating the effects of tariffs can prove challenging. Knowing how tariffs work doesn’t mean you can avoid them. It’s a federal-level mandate, after all. Still, there are some steps you can take to prepare. Here are some that we think you should consider:

• Stockpile ahead of time—Under normal circumstances, we wouldn’t advocate carrying excess inventory. However, desperate times call for desperate measures. Ordering as much as possible before tariffs take effect may be a smart move—at least for the short term. 
• Assess supply lines—The upcoming tariffs will likely challenge supply lines worldwide, so it’s a good idea to check up on yours. Some may rely on US or Canadian infrastructure, and whether that will remain after the tariffs is a bit of a toss-up.
• Explore alternative sources—As the costs of certain vendors rise, it’s essential to check for alternatives. While some suppliers may increase their prices, others may stop servicing your area altogether.
• Reduce costs in other areas—A great way to mitigate the impact of tariffs is to cut costs wherever possible. One easy way to do this is to use software to streamline your processes. For example, if you implement inventory software, like inFlow, you can automate various tasks, saving time and money.    

Conclusion

Now you know how tariffs work, you would probably agree that they aren’t great for anyone. If this trade war continues too long, consumers and businesses will feel the pain. We’re not trying to be the bringers of doom and gloom, but tariffs damage the global economy. That’s just the reality.

The post Why Tariffs Are a Disaster for Businesses in the U.S. and Canada appeared first on inFlow Inventory.

• Small businesses can create barcodes in Excel using a barcode font such as Code 39 to avoid additional software costs.
• Barcodes enhance operational efficiency in many ways, like tracking inventory, organizing shelves, labeling documents, and managing pallets or containers. 
•  Implementing barcodes doesn’t require technical know-how and has minimal to no start-up costs. 
• Barcodes reduce human error, speed up processes, and improve customer satisfaction.
• While creating barcodes in Excel is a budget-friendly solution, it has limitations compared to specialized software like inFlow, which offers advanced barcoding and inventory management features.

It’s no secret around here how much we love barcodes. Few things provide the same amount of value and function when it comes to managing inventory. In addition to tracking product flow, barcodes are great for a myriad of other applications. For instance, you can use them for asset tracking, barcoding shelves, documents, and warehouse pallets or containers.

If you’re having an inventory-related issue, barcodes may help alleviate it. Small businesses, however, may find implementing them daunting. They require some know-how and a bit of extra hardware, but the truth is that just about anyone can implement barcodes at little to no additional cost.

For example, many small businesses create barcodes in Excel when they’re just starting out. You read that right– Excel. Today, we’ll be going over how to create barcodes in Excel and why it might make sense for your business. 

Why are barcodes so important? 

First things first, though: why? If we haven’t made that abundantly clear by now, the answer is simple: barcodes are incredibly useful.

For example, you can place a barcode on a warehouse shelf and code it to carry information for every product on that shelf. This can help employees locate products more quickly and increase customer satisfaction by reducing customer lead time. 

You can also use QR codes on documents to quickly link to valuable resources and information. This could significantly increase the efficiency of your shipping and receiving process, saving your employees time.

Another popular use case is LPN barcodes. These barcodes are placed on pallets, shipping containers, and other warehouse moveables and are integral to managing inventory in large, busy warehouses.    

In short, barcodes have many different uses. Their use cases are really only limited by your imagination. 

How barcodes in Excel work

Not all barcodes are the same. For example, a QR code is a type of barcode, but it’s distinctly different from the black-and-white stripes you see in stores. We refer to different barcode formats as barcode symbologies. Some of these symbologies are easily accessible through barcode fonts, and these fonts are how you create barcodes in Excel.

It’s as simple as installing your barcode font and then typing it in Excel like any other font. From there, you can create barcodes using alphanumeric characters. 

Why create barcodes in Excel?

Strange as it may sound, there’s a few reasons to create barcodes in Excel. For starters, it’s fairly easy and accessible to just about anyone. Businesses tend to use Excel for one thing or another, so it’s really just expanding its use case.

Investing in a new system or software is going to cost money. There’s no way around it. However, if you create barcodes in Excel, software you’ve already bought and paid for, you save on purchasing something new. This means you can start to get the benefits of barcodes at no added costs to your business.   

How to generate barcodes in Excel

First, you’ll need Excel (duh).

Next, you’ll need a barcode font. For this guide, we’ll use the Code 39 barcode font. This font initially only had 39 characters, hence the name. However, it has since expanded to contain up to 43 individual characters and is widely used for internal inventory management. We created our own free Code 39 barcode font, which you can download below. 

<div style="text-align: center;"><div style="text-align: center; display: inline-flex; flex-direction: column;"><a class="inflow-button" href="https://www.getdrip.com/forms/381769907/submissions/new" data-drip-show-form="381769907">Get the inFlow Code 39 font</a><span class="disclaimer">You are minutes away from typing out barcodes</span></div></div>

Installing and using the barcode font

Once you’ve downloaded the font, you’ll find two TTF files: machine-readable and human-and-machine-readable. If you want the characters to appear below the barcode when you type it out, you’ll want to download the human-and-machine-readable. Otherwise, you can download the machine-readable version.

Installing and using the barcode fonts works like any other font. Once installed, you simply select the font from the list of available fonts, and like magic, your keystrokes will now generate barcodes.

One thing to keep in mind when generating barcodes is that for a scanner to read them, you’ll need to start and end each code with an asterisk (*). These symbols are a way of telling the scanner when to start and stop reading the code. So, for example, if you want to create a barcode for M32D67G, you would need to type *M32D67G*.

Setting up your barcode generator in Excel 

Now that we have our barcode font ready, it’s time to create a spreadsheet in Excel that will act as our barcode generator. We’ll only need two columns: columns A and B. We’ll use column A to type in the characters of our barcode, and column B will be the cell that will generate the barcodes. The setup process looks like this:

1. Start by formatting column A so that it leaves numbers as plain text rather than equations or scientific notation. To do this, right-click column A and select “Format Cells”.
2. When the context menu appears, select the “Number” tab.
3. In the “Category” column, select “Number” and click “OK”.
4. To automate the process of putting asterisks on both sides of our text, we can enter the following formula into column B: =”*”&A1&”*”
5. Once you input the formula, apply it to the entire column. You can do this by selecting the relevant cell and then dragging down from the bottom right of said cell.
6. To finish your barcode generator, select column B and change the font for the entire column to the barcode font you installed.   

Important: We assume you’re also using columns A and B, but you can use any of them. You’ll need to adjust the formula, but that’s simple. For C1, replace A1 in the formula, F4 for F4, and so on. 

Creating your barcodes in Excel

Now that you have the spreadsheet set up, things are pretty simple. Whatever you type in column A should appear in column B as a barcode. And since we set the formula in column B to include the asterisks, we don’t need to worry about those in our codes.  

And that’s it! Now, you have a barcode generator in Excel. What codes you use for your products is really up to you. You may want to use random numbers and letters or build in some sort of naming convention. The important thing is that you connect those codes to your products in whatever system you’re using to track your inventory.    

What to do after you’ve generated your barcodes

Generating barcodes in Excel is great, but now what? Once you have your barcodes ready, you can print them out and attach them to your inventory. There are several options when it comes to barcode label printers, but if money is an issue, a standard office printer would work just fine.

For a more reliable and warehouse-ready option, consider the inFlow Portable Label Printer. It’s compact, wireless, and built to handle warehouse environments—perfect for printing barcode labels directly from your phone or tablet. Whether you’re labeling shelves, products, or pallets, this printer is your new best friend.

The same goes for barcode scanners. While there are a number of options depending on your use case, the camera on a smartphone can also function as a barcode scanner. How the scanner functions will depend on which software you use with your barcodes. For example, if your inventory sheet is in Excel, a scanner could populate cells simply by scanning a barcode.

You can use the same function to search for a barcode in your Excel sheet. Just hit Ctrl + F to bring up the find menu and scan your barcode. It should populate into the text line, and from there, you can quickly look up the inventory connected to that barcode. 

How inFlow’s built-in barcoding system can help

Now that you know how to create barcodes in Excel, you can start to use them in your business. Keep in mind, though, that this isn’t a perfect solution. It gets the job done, but there are some inherent limits to using Excel as a barcode generator. 

It’s also worth mentioning that if you’re using Excel to generate barcodes, you’re also using it to track your inventory. While Excel is certainly an option for managing your inventory, when it comes to getting the most out of barcodes, it falls short.

Software solutions like inFlow offer inventory management with built-in barcoding functionality. Our software allows you to create detailed product listings that include all the information about your inventory, including pictures. We enable you to generate barcodes for your products and design custom barcode labels with our built-in label designer.

With inFlow, you get more than just a barcode generator. You get a full-fledged inventory management system at an affordable price.

The post How to Generate Barcodes in Excel for Inventory Management appeared first on inFlow Inventory.

• Automated inventory management systems use barcodes, real-time updates, reorder points, and integrations to reduce human error and increase speed.
• The benefits of automated inventory tracking include improved workflow efficiency, fewer errors, and improved demand forecasting.
• Key features in automated inventory management software include barcodes, perpetual inventory tracking, integrations, reporting, and reorder point notifications.
• Implementation involves identifying business needs, setting up automation like barcodes and integrations, and calculating reorder points.
• Automation will save businesses money through reduced labor requirements, faster workflows, and minimized errors.

AI and automation seem to be all anyone talks about these days, and as it turns out, there’s a pretty good reason for that. It’s hard to ignore the value AI and automation bring. These key features can help businesses through process automation, predictive analysis, and automated inventory management.   

So, today, we’ll focus on automated inventory tracking, including its benefits and what to look for when implementing an automated inventory management system. 

What is an automated inventory management system? 

Inventory management, in theory, is pretty simple: track products and assets as they move through your business. In practice, though, it’s much more complex. You’ll need to juggle many moving pieces, like sales orders, purchase orders, stock levels, price, inventory movement across multiple locations and sublocations, and so on.

Manually tracking these things is possible but usually inadvisable. Human error is a constant, and we are especially susceptible to mistakes when performing repetitive, menial tasks. Automated inventory management seeks to remedy this by using software to minimize the need for human input. Automated inventory management software achieves this through various means ranging from barcodes to automated reorder notifications.

Unlike humans, computers are great at handling repetitive tasks. They can also integrate with other systems, making them ideal tools for many different applications. 

What are the benefits of automated inventory tracking?

Automated inventory management has two main benefits: speeding up workflow and reducing human error. This is where barcodes shine. Scanning a barcode is much easier and faster than manual data entry, not to mention much more accurate. While barcodes may not be the most exciting automation available, they arguably bring the most value.

Scanning barcodes may only save you a few minutes here and there, but that time will add up quickly. Not to mention, barcodes work in a very binary way; they either scan or they don’t. Unlike manual data entry, where it’s easy for someone to make a mistake.

Automated inventory tracking is also a great way to protect your business from the unexpected. Inventory management software like inFlow has built-in reorder points, which means when your stock levels dip below a specific level, the system will send an automated notification to let you know it’s time to order more. If you’d like to see machine‑learning forecasting in action, you can book a demo with StockTrim—a forecasting add‑on for inFlow that analyzes sales data and suggests when to reorder.

Another incredible benefit is the data that inventory tracking yields. Automated inventory management software tracks sales as they happen, providing a comprehensive log of when they occur. Collecting this data will improve a business’s demand forecasting in the long term. These forecasts help guide business decisions and can also help identify cost-saving measures.

Key features for automated inventory software

Not every automated inventory management software functions the same, but unsurprisingly, they tend to operate on the same principles. In the same vein, there are some must-have features that any automated inventory management system should have (some of them we’ve already touched on).

Barcodes 

We’ve mentioned barcodes a couple of times already, and that’s because much of automated inventory tracking hinges on them. When an employee scans a barcode, the machine matches it to the relevant product within the barcoding software. This simple function allows you to automate several tasks, such as picking, stock adjustments, cycle counts, and more. Without barcodes, the efficacy of automated inventory management decreases drastically. 

Real-time tracking

Real-time tracking means that inventory information updates whenever a change occurs. Accurate assessment is crucial when making business decisions; real-time tracking always provides an accurate picture. This is particularly useful when your business operates from multiple locations. When you take something from one location, all other locations will be automatically updated. 

Integrations

These days, businesses often rely on multiple different software solutions to perform various tasks. For example, you might use inFlow for automated inventory management and QuickBooks Online to handle accounting and other financial information. It’s important that these systems can talk to one another, which requires a robust list of integrations.

For instance, inFlow integrates with QuickBooks Online, which automates two-way payment sync. This allows you to push payments from inFlow to QuickBooks Online and pull payments from QuickBooks Online to inFlow—no more double data entry.  

Reporting

Inventory management software stores quite a bit of data. It collects sales information like quantity, date of sale, price, and so on. This data is super helpful, but organizing and analyzing it in a meaningful way can be tricky. Thankfully, automated inventory management software will handle the grunt work for you. As a result, all you need to do is click a button to generate various reports easily. 

Reorder point notifications

Inventory drives revenue—without inventory, there can be no purchases. That means you’ll need to stay on top of your inventory levels to avoid potential stockouts. Reorder points are a great way of automating this process. They ensure you maintain the perfect balance of stock to prevent both stockouts and carrying excess inventory.

How to implement an automated inventory system

If you’re looking to implement your own automated inventory management, it’s important to remember that your needs are unique. Even businesses operating in the same sector or niche may have different procedures. For that reason, we can’t offer a perfect guide to finding a solution, but we can provide some general steps. 

First, identify your business needs. Are you looking to improve the accuracy of your stock level records? Are you trying to reduce inventory shrinkage, or is there something else entirely? Your business needs will ultimately decide the ideal solution, so it’s important to know what exactly you need while looking. 

Once you find an automated inventory management solution with all the features you want, you’ll need to set up your automation. This step is easily the most time-consuming but is a one-time process. Once you’re set-up, you should be good to go for a while. 

If you plan to use barcodes, you must generate, print, and label all your inventory. To use reorder points, you’ll need to calculate them for each of your products. If you’re interested in integrating your various software solutions, you’ll need to go through the process of connecting your software solutions. 

Does it save money for small businesses?

Short answer: yes.

While automated inventory management software often has a recurring cost in the form of a subscription, it still saves money in the long run. This is mainly because it dramatically reduces the need for staffing. Labor is expensive, and reducing workforce requirements while allocating it elsewhere is a tremendous boon. 

This is without taking into account additional costs incurred by human error. Human error can be exorbitantly costly, and avoiding it as much as possible is yet another reason to favor automated inventory tracking. 

The post Avoid Costly Mistakes with Automated Inventory Management Software appeared first on inFlow Inventory.