Item Codification
Item Codification
If you already have a full-fledged business with a number of tangible things, you would have undoubtedly coded your items. If not, you have a decision to make. If you have a lot of items with lengthy or intricate names, we advise you to codify. It is advisable to keep the Item Code and Item Name the same if you have a small number of products with short names.
Wars have been fought over the sensitive subject of item codification (not joking). In our experience, living without codification is a nightmare when you have products that exceed a particular size.
1. Benefits
Usual nomenclature for naming objects.
fewer duplicates are likely to exist.
Unambiguous definition
aids in finding related items quickly.
When additional varieties are added, item names continue to grow longer and longer. Coding is now shorter.
2. Challenges
You must keep the codes in mind!
more challenging for new team members to learn.
You constantly need to produce fresh codes.
3. Example
Instead of just numbering them sequentially, you should codify your Items in a straightforward handbook or cheat sheet. Each letter must have meaning. Here's an illustration:
If your company deals with wood furniture, you may codify as follows:
Sheet of Item Codification Summary (SAMPLE)
The final few letters could follow one another. You can see that the wooden molding is less than 10 cm in size by glancing at the code WM304.
4. Standardization
When naming something with multiple people involved, everyone's naming technique will vary. Even one person can forget how they titled something occasionally and give it a different name, such as "Wooden Sheet 3mm" or "3mm Sheet of Wood."
5. Rationalizing
The best approach is to keep your inventory at a low and make housekeeping and other tasks easier by having a limited variety of goods. The item codes will help you quickly identify whether you are using a comparable raw material in another product when you are creating a new product and want to know if you are already purchasing a part in some other product.
Although it's fair not to codify if you have fewer items, we think that if you make this small investment, it will help you justify things when your firm expands.