Companies dealing with inventory face numerous transactions daily—receiving, moving, and selling goods. Each stage demands high accuracy, speed, and significant resources. To simplify and accelerate the identification and accounting process, products are labeled with unique codes.
Most commonly, you’ll find two types of codes on packaging: one-dimensional barcodes with stripes and two-dimensional QR codes with black and white squares. Both types are easily scanned using specialized devices that transmit data directly into computer systems. This not only saves considerable time but also reduces errors associated with manual data entry.
In this article, we’ll compare barcodes and QR codes, explore their advantages and disadvantages, and help you choose the best solution for effective inventory management.
The Role of Barcodes in Inventory Management
Today, nearly all retail stores and logistics centers use linear barcodes for quick identification. These are the graphic labels we see every day on every product in the supermarket. Barcodes consist of alternating black stripes of varying thickness, arranged on a white background according to a specific coding algorithm. They are read using a special barcode scanner, which converts the graphic code into digital information used in accounting systems. A single barcode can contain up to 20–30 characters, which is enough to encode key product data, including:
product name;
manufacturer or importer;
SKU (stock keeping unit);
color;
weight;
size and other product parameters.
The first barcode prototype was created in 1952 based on Morse code. However, it wasn’t used in practice until 20 years later. The first successful sale using a barcode took place on June 26, 1974, at a Marsh supermarket in Ohio. The scanned item was a pack of Wrigley’s chewing gum.
Since then, the technology has become a standard in logistics, retail, and manufacturing, helping businesses save time and resources. It enables companies to:
quickly and accurately identify products;
track inventory movement in warehouses and stores in real time;
automate inventory processes;
streamline sales.
Barcodes help track the movement of goods at every stage—from arrival at the warehouse to sale to the end consumer. Automatic data scanning significantly reduces the number of errors, eliminating the need for manual data entry.
Moreover, barcodes speed up staff operations, reducing the time spent on receiving, picking, and shipping goods. As a result, the transparency of all warehouse operations increases. Companies gain the ability to effectively manage inventory, prevent shortages or excess stock, and optimize logistics processes.
Popular one-dimensional barcodes:
EAN-13 – the dominant standard in retail, capable of encoding 13 numeric characters.
UPC – the North American equivalent of EAN. It is a 12-digit numeric code.
ITF-14 – используется для маркировки транспортных упаковок.
ISBN – a barcode used for marking book editions.
The Role of QR Codes in Inventory Managementy?
Like barcodes, QR codes are also used for inventory management. Unlike traditional linear barcodes, they are two-dimensional matrices. This structure allows them to store significantly more information—from simple numeric and alphanumeric codes to entire links, documents, and contact details. QR codes are read in two directions (horizontally and vertically) at once.
The technology was originally developed in 1994 by the Japanese company Denso Wave specifically for the automotive industry. Over time, it expanded to various fields, including warehouse logistics and retail. QR codes allow instant access to information about a product, its specifications, expiration dates, suppliers, and its location in the warehouse.
Thanks to the ability to scan QR codes with both specialized scanners and regular smartphones, their use greatly simplifies inventory management. Warehouse or retail staff can instantly access product data without spending time entering information manually. Additionally, QR codes are resistant to damage: even with partial contamination or deformation, they retain the ability to transmit encoded data.
Types of QR codes:
Static: The information “embedded” in the QR code cannot be changed. This format is used to store serial numbers, product details, links, contact information, and Wi-Fi settings.
Micro QR Code: A miniature version of the standard code with a smaller data capacity. It is used on small products, packaging, and documentation where space-saving is essential.
Dynamic: The QR code directs to a webpage or mobile app. The data can be updated without changing the code.
Advantages of Using Barcodes for Inventory Management
Although QR codes offer enhanced data storage capabilities, traditional barcodes remain the most popular tool for product identification. In some aspects, they outperform QR codes, providing businesses with several advantages:
Fast and accurate scanning
Most basic scanners can read linear barcodes, allowing instant access to product information with minimal risk of errors.
Versatility
Linear barcodes are widely used in various industries, from retail to logistics and warehouse management. They are supported by almost all automation systems, making their integration into workflows straightforward.
Low printing cost
Printing, applying, and scanning linear barcodes requires lower costs and can be done with simpler equipment. In contrast, creating and reading QR codes typically requires more expensive equipment, increasing production costs.
Disadvantages of Barcode Identification
Despite their popularity and convenience, barcodes have several limitations that can pose challenges in inventory management.
Limited data capacity
Barcodes contain only a short sequence of characters (typically 20–30 symbols) and provide only basic product information. They cannot include links to web pages, usage instructions, or other additional information that could be useful for customers or staff.
Sensitivity to damage
If a barcode is scratched, creased, or partially covered, the scanner may fail to recognize it. This can slow down operations in the warehouse or store, requiring a manual search for the product in the system.
Orientation requirement for scanning
A barcode must be scanned in a specific plane. This means that the staff member must position the scanner at the correct angle, which can slow down the process during high-volume item handling.
Inability to change information
Once a barcode is applied to packaging or a label, the information contained within it cannot be altered. If data needs to be updated, the entire labeling must be replaced, which leads to additional costs and logistical challenges.
Vulnerability to copying
Barcodes are relatively easy to copy and reproduce using a standard printer. Malicious actors can counterfeit the code and apply it to the packaging of counterfeit products.
Advantages of Using QR Codes for Inventory Management
Although barcodes remain a widely used tool for inventory management, QR codes offer several advantages, making them more functional in today’s business environment.
Large data capacity
Unlike barcodes, which store only a few dozen characters, a QR code can hold up to several thousand characters. A standard QR code can contain up to 2,509 numeric or 1,520 alphanumeric characters. This feature allows detailed product information, including URLs, instructions, and contact details, to be embedded directly within the code, eliminating the need to reference external databases. This makes QR codes useful not only for inventory management but also for marketing and customer engagement.
Small size
QR codes can encode a large amount of information, including text, links, and other data, while occupying minimal space on the packaging. Their two-dimensional structure allows for a high data density without increasing the size of the code.
Multi-directional scanning
QR codes do not require precise scanner alignment. They can be scanned from different angles, which speeds up the inventory process and makes it easier for employees to work.
High resistance to damage
The QR code remains readable even when partially damaged, as its structure includes error correction mechanisms. Unlike a barcode, which becomes unreadable with even the slightest defects, a QR code can be restored and read even with up to 30% of the image lost.
Integration with mobile devices
QR codes can be decoded using software installed on a smartphone. Consumers can independently access detailed information about products, verify their authenticity, or engage in interactive communication with the manufacturer.
Disadvantages of Using QR Code
QR codes also have their drawbacks. Despite their versatility and ability to store large amounts of data, they are not always the optimal solution in situations where minimal costs are required.
Requirement for special equipment
Although QR codes can be scanned using smartphones, automated warehouse processes and checkout areas require 2D scanners. These are more expensive than traditional barcode scanners, which increases the costs of implementing the technology.
Security issues
QR codes can contain potentially malicious URLs or commands that are executed automatically upon scanning. The average user has no way of visually assessing the contents of a QR code before scanning it, which creates risks of phishing, unauthorized access to personal information, or the spread of malware.
What Is the Difference Between QR Code and Barcode?
In general, QR codes carry the same information as barcodes. However, compared to barcodes, they offer broader capabilities. To better understand the difference between a barcode and a QR code, we have compared them across key characteristics. Understanding these differences will help you choose the most suitable tool for your business.
| Characteristics | Barcode | QR-code |
| Structure | A linear image with alternating black and white stripes. It encodes data in one dimension (1D). | A two-dimensional matrix of black and white squares. It allows storing information in two dimensions (2D). |
| Data capacity | It contains a limited number of characters (usually up to 30), which is sufficient for product identification but does not allow encoding additional data. | It can store up to several thousand characters, including text, links, contact information, serial numbers, and other data. |
| Scanning speed | It requires precise positioning in front of the scanner – it needs to be read horizontally. | It can be scanned from any angle, which simplifies and speeds up its use. |
| Damage resistance | It easily becomes unreadable due to physical damage, contamination, or loss of part of the image. | It is equipped with a built-in error correction system and can remain readable even if up to 30% of its area is damaged. |
| Implementation cost | They are cheaper to print. They are easy to integrate into warehouse systems and can be scanned using inexpensive laser scanners. | They require 2D scanners and digital infrastructure (websites, apps), which increases costs. |
| Application | They are widely used in retail, logistics, and inventory management, where quick product identification is important. | They are used not only in logistics but also in marketing, ticketing systems, as well as for product authentication and customer interaction. |
QR Code vs Barcode: Which to Choose for Inventory Management?
QR codes have some important advantages over barcodes in terms of their capabilities. However, barcodes should not be dismissed, especially when it comes to inventory management, where simplicity and cost-effectiveness are crucial.
In high-intensity warehouse operations that require processing large volumes of uniform goods, linear barcodes often show an advantage. They are easy to apply, can be scanned instantly, and are widely supported by warehouse systems. Moreover, it would be unwise to invest in expensive QR code scanning equipment if all you need to capture is basic product information.
If your business needs to store more detailed information than just a product description, or if you want to provide customers with easy access to additional data, QR codes would be a more suitable solution. They are ideal for tracking batch numbers, handling warranty cases, product authenticity verification, and engaging with customers via mobile devices. In some cases, it may make sense to combine both types of codes. Therefore, the question is not which technology is better, but which one is better suited to your business.
Whatever option you choose, barcode or QR code, Ysell.pro will help you easily integrate the coding technology into your warehouse operations. The system supports both types of coding, allowing you to use them according to your business’s specific needs. With integration with mobile scanners, Ysell.pro automates key processes, reducing the likelihood of errors and increasing data processing speed. This will help your business operate faster, more accurately, and more efficiently.
Frequently Asked Questions
1. How does the use of barcodes help in inventory management?
Barcodes significantly simplify the processes of accounting and tracking goods, reducing the time required to input data. Instead of manually entering information, warehouse staff scan the barcode, and the data is automatically transferred into the computer system. This helps accelerate inventory processes, goods receipt, and order processing, improving overall inventory management efficiency.
2. What equipment is required to work with QR codes?
To scan a QR code, 2D scanners or mobile devices with a camera and appropriate software are required. Modern inventory management systems, like Ysell.pro, support both 1D and 2D codes.
3. Barcodes vs. QR codes: Which is cheaper for inventory management?
Linear barcodes are cheaper to print and integrate since most warehouse systems and point-of-sale systems already support them. QR codes may require additional costs for equipment and digital infrastructure.
4. Barcodes vs. QR codes for inventory management: how to choose the right coding option?
Evaluate the amount of information that needs to be encoded, the available equipment, and your business objectives. If you need a quick and cost-effective solution for product tracking, choose barcodes. If storing additional data and integrating with digital systems is important, consider using QR codes.
