Barcodes and SKUs are systems for uniquely identifying products in your inventory. For Pakistani small businesses, implementing barcode and SKU management improves accuracy, speeds up operations, and enables better inventory tracking.
This guide explains the difference between barcodes and SKUs, how to set them up, and best practices for small businesses.
What is a Barcode?
A barcode is a visual representation of data that can be scanned by machines. The familiar black-and-white lines encode a number (like a product code) that inventory systems can read instantly.
Common Barcode Types
| Type | Digits | Use Case |
|---|---|---|
| EAN-13 | 13 | Retail products (most common globally) |
| UPC-A | 12 | Retail products (North America) |
| Code 128 | Variable | Logistics, internal use |
| QR Code | Variable | Marketing, detailed product info |
What is a SKU?
A SKU (Stock Keeping Unit) is an alphanumeric code that uniquely identifies each product variant in YOUR business. Unlike barcodes (which are standardized), SKUs are created by you.
SKU vs Barcode
| Aspect | Barcode | SKU |
|---|---|---|
| Created by | Manufacturer/standards body | Your business |
| Format | Numeric only | Alphanumeric (letters + numbers) |
| Uniqueness | Global (same product, same barcode) | Internal (same product can have different SKUs in different businesses) |
| Purpose | Scanning at checkout | Internal tracking and organization |
| Readability | Machine readable | Human readable |
Benefits of Barcode and SKU Systems
1. Speed
Scanning a barcode takes 1 second vs. 10+ seconds for manual entry. In high-volume retail, this transforms checkout speed.
2. Accuracy
Manual entry has 1 error per 300 entries on average. Barcode scanning has 1 error per 3 million scans. Fewer errors mean accurate inventory and correct pricing.
3. Tracking
Know exactly what sold, what is in stock, and what needs reordering. Track movement through warehouse locations.
4. Efficiency
Faster stock audits, quick receiving of goods, and streamlined order fulfillment.
Creating Your SKU System
SKU Naming Best Practices
- Keep it short: 8-12 characters maximum
- Make it meaningful: Include category, brand, variant info
- Avoid confusion: No O/0, I/1, or special characters
- Be consistent: Follow same pattern for all products
- Start with letters: Easier for sorting and recognition
SKU Structure Example
Format: CATEGORY-BRAND-PRODUCT-VARIANT
Examples:
CLO-NK-TSH-BLU-M = Clothing-Nike-Tshirt-Blue-Medium
ELE-SAM-PHN-A54-128 = Electronics-Samsung-Phone-A54-128GB
GRO-NES-MLK-1L = Grocery-Nestle-Milk-1Liter
PHM-PAD-PAN-500 = Pharma-Panadol-Panadol-500mgGetting Barcodes for Your Products
Option 1: Use Manufacturer Barcodes
Most branded products already have barcodes. Simply scan and link to your SKU in your system.
Option 2: Create Internal Barcodes
For unbranded products, loose items, or custom products, create your own barcodes using Code 128 format based on your SKUs.
Option 3: GS1 Registration
If selling through major retailers or export markets, register with GS1 Pakistan to get official EAN barcodes. Cost varies based on company size.
Barcode Hardware
Barcode Scanners
| Type | Cost (PKR) | Best For |
|---|---|---|
| USB Wired | 3,000-8,000 | Fixed checkout counters |
| Bluetooth Wireless | 6,000-15,000 | Mobile use, warehouse |
| 2D/QR Scanner | 8,000-20,000 | QR codes, damaged barcodes |
| Mobile Phone App | Free | Basic use, testing |
Barcode Printers
| Type | Cost (PKR) | Best For |
|---|---|---|
| Desktop Thermal | 15,000-40,000 | Low-medium volume labels |
| Industrial | 50,000-150,000 | High volume, durability |
| Mobile Printer | 25,000-60,000 | Warehouse, on-the-go labeling |
Label Materials
- Paper labels: Cheapest, indoor use
- Synthetic labels: Water resistant, durability
- Direct thermal: No ribbon needed, fades over time
- Thermal transfer: Longer lasting, needs ribbon
Implementation Steps
Step 1: Design Your SKU System
Create a consistent naming convention before entering products. Document the structure for all staff.
Step 2: Set Up in Software
Enter products in your inventory software with SKUs and barcodes.
Step 3: Get Hardware
Purchase appropriate scanners and printers for your volume.
Step 4: Label Products
Print and apply labels to products without existing barcodes.
Step 5: Train Staff
Ensure all staff know how to scan, enter products, and handle scanner issues.
Common Mistakes to Avoid
- Inconsistent SKUs: Different formats make searching difficult
- Too complex: 20-character SKUs are hard to use
- No documentation: Staff do not understand SKU meaning
- Duplicate barcodes: Same barcode for different products causes chaos
- Poor label quality: Unreadable labels defeat the purpose
Frequently Asked Questions
Do I need barcodes if I have a small shop?
Can I use my phone as a barcode scanner?
How do I handle products with variants (sizes, colors)?
What if a products barcode is damaged or missing?
Can I change SKUs after implementation?
Conclusion
Implementing barcodes and SKUs is one of the most impactful improvements a small business can make for inventory accuracy and operational efficiency. Start with a well-designed SKU system, invest in basic scanning equipment, and integrate with your inventory software.
Looking for inventory software with barcode support? HysabOne includes barcode scanning, SKU management, and automatic inventory tracking. Contact us on WhatsApp for a demo.
Last Updated: December 2024