How do I create a barcode inventory system? Seven steps from SKUs to first count

How to create a barcode inventory system in seven steps

You create a barcode inventory system by giving every item a SKU and one unique barcode, labeling the stock, loading the items into inventory software that supports scanning, and then scanning a full opening count so the system starts from true quantities. The steps below use inFlow Inventory's documentation as the worked reference. The same order applies to any product.

1. Clean the item list and set SKUs.
2. Decide where barcode numbers come from.
3. Enter or import the barcodes.
4. Print and apply labels.
5. Choose a scanner.
6. Test receiving and picking by scan.
7. Scan the opening count and go live.

What you need before you start, and which plan

• An item list in a spreadsheet: one row per product, no duplicates.
• Software with scanning. In inFlow, the mobile app is included with every plan. Lite costs $99 per month billed annually or $129 month to month, as read on 3 October 2026, and covers 2 team members and 1 location. If you only scan supplies in and out, inFlow Stockroom starts at $69 per month billed annually. BoxHero has a free plan for 100 items.
• A label printer. inFlow says it prints to almost any label printer and works best with thermal models.
• A scanner or a phone. A phone is enough to begin.

Not sure a paid system is justified yet? Inventory software versus a spreadsheet covers that decision.

Steps 1 to 4: SKUs, barcode numbers and labels

• Step 1, clean the list and set SKUs. Merge duplicates and give each sellable variant its own SKU. The SKU design guide has a pattern to copy.
• Step 2, decide where the numbers come from. For goods you buy, use the UPC or EAN the vendor already printed. For your own products, let the software generate internal barcodes. In inFlow this is under Settings, in the barcodes and SKUs area: turn on automatic generation for products without a barcode and click to generate. If retailers will scan your product, license real GTINs. GS1 US lists a single GTIN at $30 with no annual renewal, and 10 GTINs at $250 plus $50 a year, as read on 3 October 2026.
• Step 3, enter or import the barcodes. In inFlow you can open a product, click the Barcode field, scan the item and save. For many products, use a CSV import. One product can hold several barcodes separated by commas.
• Step 4, print and apply labels. Use the Label Designer templates. Label the item, or the shelf or bin for small loose parts. Label printing can be started from product records, current stock and purchase orders.

Steps 5 to 7: scanner, test run and the first count

• Step 5, choose a scanner. inFlow states that most plug-and-play scanners work: USB, wireless receiver or Bluetooth. Pick a model that reads 2D codes if you will use QR labels with lot or expiry data. Buy one, test it, then buy the rest.
• Step 6, test receiving and picking. Open a purchase order, scan each arriving item and confirm quantities rise. Then pick a sales order by scan. On Windows, a scan fills the product cell and moves to the next line. On the mobile app you tap the barcode icon and scan with the camera.
• Step 7, run the opening count. In inFlow for Web, create a stock count, choose the location and add all products at that location. Split the count across several sheets if more than one person is counting, enter counted quantities, review the discrepancy column and complete the count to adjust stock.

inFlow warns that a stock count is a snapshot. Stop processing orders and stock movements once counting starts. After go-live, keep accuracy up with a rolling schedule from the cycle count plan.

Worked example: 400 products, two people, one stockroom

A parts wholesaler has 400 products. About 300 arrive with vendor UPCs and 100 are repacked in-house. One possible schedule:

• Day 1: clean the spreadsheet, assign SKUs, import products to inFlow Lite.
• Day 2: scan vendor UPCs into the 300 product records, or import them by CSV. Generate internal barcodes for the other 100.
• Day 3: print 100 labels for the repacked items and label the bins.
• Day 4: receive one real purchase order by scan as a test.
• Weekend: pause orders, run a two-sheet stock count, review discrepancies, complete the count.

Lite's two team members cover both people. A third person would add $29 per month.

A mistake to avoid: labeling a messy item list

A mistake to avoid is printing labels before the product list is clean. Barcodes must be unique, and inFlow does not support duplicates. If the same item exists twice under slightly different names, staff will scan one record at receiving and another at picking, and both quantities drift.

Fix names, units of measure and duplicates first. Label second. Count last. For the wider rollout sequence, including who does what, see the barcode rollout plan.