Managing inventory can be challenging for any company, and much of this difficulty comes from poor naming conventions. Establishing a solid standard for inventory coding can significantly improve efficiency and accuracy. Here are some essential tips to help you create effective inventory codes.

Key Principles for Inventory Coding

1. Avoid Leading Zeros: Don’t start item numbers with a zero. This can cause issues in certain systems and software.
2. Avoid Confusing Letters: Letters that look like numbers, such as O, I, and L, can easily be mistaken for digits. Using a font with a slashed zero, like ‘Terminal,’ can help avoid this problem.
3. Avoid Problematic Characters: Certain characters can cause issues in both human interpretation and software processing. Avoid using commas, slashes, and symbols like “<“, “>”, and “*”. Stick to simple alphanumeric characters to prevent errors when transferring data between inventory software and spreadsheets.
4. Don’t Use Manufacturer’s Codes: Manufacturer serial numbers or part numbers are often too long and complex. Additionally, if you switch suppliers or the manufacturer changes their numbering system, these codes become irrelevant.
5. Keep It Short but Distinct: Item numbers should be short but distinct enough to avoid confusion with other numbers (e.g., quantities). Typically, 4 to 8 characters are adequate. Ensure the minimum length is at least 4 characters to be compatible with most barcode readers. Some software solutions, like Flaps Sales, allow the SKU to function as the barcode, which can simplify your process. In such cases, monitor the character count closely.
6. Consider Maximum Length: Decide on a maximum number of characters for your item code based on your company’s packaging or printing needs. For example, if you print these codes as barcodes on self-adhesive labels, consider the available space on the label to ensure the barcode fits properly without exceeding the label size.
7. Avoid Embedded Meanings: Don’t try to include descriptive information in the item number. This can lead to overly long and complicated codes. Use item descriptions for detailed information instead.
8. Incorporate Letters Strategically: Including a few alphabets in your item numbers can help differentiate them from purely numeric codes and expand your coding combinations & options, while keeping them short.
9. Use Descriptive Prefixes: Starting item numbers with letters from the item description can make them easier to find in pick lists. For instance, “Sauce, Chocolate” could be coded as “SAU101,” and “Sauce, Caramel” as “SAU102.”
10. Adopt a Reverse Context Structure: Use a reverse context format, such as <generic-name><brand><variant>, to create clear and logical codes.

Example Item Descriptions and Codes

• Gillette Fusion Manual Shaving Razor Blades: RBG001 (RazorBladeGillette001)
• Gillette Mach 3 Manual Shaving Razor Blades: RBG002
• Gillette Fusion Manual Razor: RFG001

• WOW Raw Apple Cider Vinegar – 750 ml: VAW750 (VinegarAppleWow750ml)
• WOW Raw Apple Cider Vinegar – 500 ml: VAW550
• Natura Apple Cider Vinegar – 750 ml: VAN750

• Tata Tea Gold, 500g: TTG500 (TeaTataGold500g)
• Tata Coffee Grand Pouch, 50g: CTG50

By following these guidelines, you can create a simple and effective inventory coding system that minimise confusions and enhances overall management. Remember, the goal is to keep your inventory system straightforward and error-free, enabling smooth operations and easier data handling.