Barcoding is the assignment of a unique code to each item or product in the inventory.
Item level barcoding: 20 pieces of a product SKU123 in the inventory are barcoded as 20 unique numbers, so that each piece/product can be tracked throughout the lifecycle.
Like SKU123-1, SKU123-2, SKU123-3,…….,….SKU123-20.
It means you can track when this item was purchased from which vendor at what price point and also to which customer it was shipped etc. It is preferred typically for categories like electronics.
SKU level barcoding: 20 pieces of a product SKU123 in the inventory are barcoded with SKU code.
Like SKU123, SKU123,….., SKU123 and history of each piece is not maintained in the system, however, this barcode can be used to scan at time of invoice printing.
None barcoding: 20 pieces of a product in the inventory are recognized with their names and quantities, and not as individual unique entities. This means that the products will still be recognized with a unique SKU but they do not have barcodes for each item. It is preferred for a small facility containing some limited inventory.