Inventory Scanner: Hardware vs Smartphone Scanning for Small Business

Aleksander Nowak · 2026-02-14 · Inventory Management

Learn how inventory scanners work. See when you need hardware and when your smartphone is enough. Guide for small manufacturers.

Inventory Scanner: Do You Need Hardware or Will Your Phone Work?

When people think of inventory scanning, they picture warehouse workers with bulky gun-style scanners. That equipment costs hundreds of dollars per unit and requires training to use properly.

But here's what most guides won't tell you: for small manufacturers, your smartphone is often enough.

Modern barcode inventory software works with phone cameras. You scan barcodes the same way you scan a QR code at a restaurant. No special hardware purchase. No training. The scanner is already in your pocket.

This guide explains how inventory scanners work, when you actually need dedicated hardware like an inventory scanner gun, and how to set up barcode scanning for your manufacturing operation without unnecessary investment.

What Is an Inventory Scanner?

An inventory scanner is any device that reads barcodes to track stock. It captures the barcode data and sends it to your inventory management software, which updates quantities and records the transaction.

A barcode inventory system has three components:

Barcodes: Labels on your products and materials containing encoded information (SKU, product ID, batch number).

Scanner: The device that reads barcodes. This can be a dedicated hardware scanner or a smartphone camera.

Software: The inventory scanning system that receives scan data, updates stock levels, and maintains records.

The scanner itself is just the input device. The real work happens in the software, which tracks what was scanned, when, by whom, and updates your inventory accordingly.

Hardware Scanners vs Smartphone Scanning

You have two main options for barcode scanning for inventory: dedicated hardware or your existing smartphone.

Dedicated Hardware Scanners

Traditional scanners for inventory come in several forms:

Gun-style scanners: Point and shoot. Fast scanning, comfortable for high-volume work. Connect via USB or Bluetooth. An inventory scanner gun and software bundle typically costs $50-500.

Rugged mobile computers: Android devices built for warehouses. Integrated scanner, drop-resistant, long battery life. Cost: $500-2,000 per unit.

Wearable scanners: Ring or glove-mounted for hands-free scanning. Used in high-speed picking operations. Cost: $300-1,000 per unit.

A stock barcode scanner makes sense when you're scanning hundreds of items per hour, working in harsh environments (cold storage, dusty warehouses), or need specialized features like long-range scanning.

Smartphone Scanning

Modern inventory management with barcode scanning works through phone cameras. You open the app, point at a barcode, and it scans instantly.

Advantages: - No hardware cost (you already own a phone) - No training needed (everyone knows how to use their phone) - Always available (phone is always in your pocket) - Updates automatically (software updates, not firmware)

Limitations: - Slower than dedicated scanners for high-volume work - Phone battery drains faster with camera use - Camera quality matters (older phones struggle with damaged barcodes)

Which Should You Choose?

For most small manufacturers, smartphone scanning handles daily needs. You can always add hardware later if volume grows.

Types of Barcodes for Inventory

Before setting up barcode inventory tracking, you need to understand barcode types.

1D Barcodes (Linear)

Traditional black-and-white stripes. Common types:

UPC/EAN: Standard retail barcodes. 12-13 digits. Used on consumer products worldwide.

Code 128: Alphanumeric, variable length. Popular for internal inventory because you can encode SKUs, batch numbers, and custom IDs.

Code 39: Alphanumeric, widely compatible. Older standard, still common in manufacturing.

1D barcodes work with any scanner or smartphone. They're simple to generate and print.

2D Barcodes (Matrix)

Square patterns that store more data:

QR Codes: Can store URLs, text, or structured data. Easily scanned by any smartphone.

Data Matrix: Compact 2D codes used in manufacturing. Can encode serial numbers, batch info, and more in a small space.

2D barcodes hold more information but require a camera-based scanner (not laser scanners).

Which to Use?

For most inventory scanning system setups:

• Internal materials and products: Code 128 with your SKU or product ID
• Finished goods for retail: UPC/EAN if required by retailers
• Batch tracking: Code 128 or Data Matrix with batch number encoded
• Quick lookups: QR codes linking to product details

You can mix types. Use whatever works for each use case.

How Inventory Scanning Works in Manufacturing

Retail inventory scanning is simple: scan when items arrive, scan when they sell. Manufacturing is more complex because materials transform into products.

Here's how barcode scanning for inventory works at each stage:

1. Receiving Raw Materials

Delivery arrives. You scan each material's barcode (or the supplier's packing slip barcode). The inventory scanner system: - Adds quantity to raw material inventory - Records receipt date for FIFO tracking - Captures batch/lot number if encoded - Links to the purchase order

2. Production Consumption

You start a production batch. Scan the materials you're using: - System deducts scanned quantities from raw materials - Links material lots to this production batch - Updates material availability in real-time

3. Finished Goods Creation

Production complete. Scan or generate a barcode for the finished batch: - System adds finished goods to inventory - Assigns batch number - Records which raw material lots were used (traceability)

4. Shipping to Customers

Order goes out. Scan products being shipped: - System deducts from finished goods inventory - Records which batch went to which customer - Creates shipping record

5. Inventory Counting

Physical count time. Walk through warehouse scanning items: - Compare scanned counts to system records - Identify discrepancies immediately - Adjust inventory with documented reasons

Each scan creates a record. You know exactly what happened, when, and who did it. Good barcode tracking software maintains this audit trail automatically.

Key Features in Barcode Inventory Software

Not all inventory software with scanning support is equal. For manufacturing, look for these features:

Real-time sync: Scans update inventory immediately across all devices. A barcode scanner for inventory tracking should update stock the moment you scan.

Batch/lot tracking: Link scans to specific batches for traceability. Know which material lots went into which products.

Mobile access: Scan from anywhere in your facility using phones or tablets. The system should work on any device.

Multiple barcode types: Support for 1D and 2D codes, including Code 128, UPC, QR, and Data Matrix.

Label printing: Generate and print labels for materials and products that don't have barcodes yet.

User tracking: Record who scanned what. Useful for accountability and troubleshooting.

Offline mode: Continue scanning if internet drops. Sync when connection returns.

Inventory Scanner for Small Business

Small manufacturers often delay barcode scanning because they think it requires expensive equipment. It doesn't.

The Smartphone Approach

Here's how to start inventory scanning system for small business without buying hardware:

Use existing phones: Any smartphone from the last 5 years has a camera good enough for barcode scanning.

Choose software with built-in scanning: Many inventory management software with scanner support includes camera-based scanning. No external app needed.

Start with what you have: If products already have barcodes (from suppliers or printed on packaging), you can start scanning immediately.

Print labels for items without barcodes: Basic barcode labels cost pennies each. Print them on a standard label printer or even a regular printer with adhesive sheets.

Cost Comparison

Some vendors offer a barcode system for inventory free at basic tiers. For a small manufacturer doing 20-50 scans per day, smartphone scanning saves hundreds of dollars with no practical downside.

How Krafte Handles Inventory Scanning

Krafte includes barcode scanning built into the platform. No additional hardware required.

Scan with any device: Open Krafte on your phone, tablet, or laptop with camera. Tap the scan button and point at a barcode. Works with 1D and 2D codes.

Scan raw materials: When deliveries arrive, scan materials into inventory. The system records quantity, date, supplier, and batch number.

Scan during production: Start a production order and scan the materials you're using. Quantities deduct automatically based on your recipes.

Scan finished goods: Complete production and scan (or generate) barcodes for finished batches. Full traceability from materials to products.

Scan for shipping: When orders go out, scan products to confirm shipment and deduct from inventory.

Connect external scanners: If you do need hardware, Krafte works with Bluetooth barcode scanners. Scans appear in the app just like camera scans.

Works offline: Scan in areas with poor connectivity. Data syncs when you're back online.

Whether you run a small workshop or larger operation, Krafte scales to fit. No hardware investment required.

Setting Up Barcode Inventory Tracking

Ready to implement barcode scanning? Here's how to set up a barcode inventory system:

Step 1: Add Products and Materials

Enter your inventory items in your software. Each item needs a unique identifier (SKU, product code, or barcode number). If items already have manufacturer barcodes, enter those.

Step 2: Generate Barcodes for Items Without Them

For raw materials from suppliers without barcodes, or for your own internal tracking, generate barcodes: - Use Code 128 for flexibility - Include your SKU or internal ID - Add batch numbers for lot tracking

Most inventory software with barcode scanner features includes label generation.

Step 3: Print and Apply Labels

Print barcode labels using: - Thermal label printer (best for volume) - Standard printer with adhesive label sheets (fine for small quantities) - Pre-printed labels from a printing service

Apply labels to materials, bins, shelves, or products depending on what you're tracking.

Step 4: Train Your Team

With smartphone scanning, training is minimal: - Open the app - Tap scan - Point at barcode - Confirm the action

Most people learn in under five minutes.

Step 5: Start Scanning

Begin using scans for: - Receiving deliveries - Picking materials for production - Completing production batches - Shipping orders - Counting inventory

Build the habit gradually. Start with receiving and shipping, then expand to production.

Frequently Asked Questions

What is an inventory scanner?

An inventory scanner is a device that reads barcodes to track stock. It can be dedicated hardware (gun-style scanner, rugged mobile computer) or a smartphone with inventory software. The scanner captures barcode data and sends it to your inventory management system.

Do I need to buy a barcode scanner for inventory?

Not necessarily. Modern inventory management software with barcode scanner functionality works through smartphone cameras. For small businesses doing fewer than 100 scans per day, phone scanning is usually sufficient. Hardware makes sense for high-volume operations or harsh environments.

Can I use my phone as an inventory scanner?

Yes. Most inventory scanning system software includes camera-based scanning. Open the app, point your phone camera at a barcode, and it scans instantly. Any smartphone from the last few years works for standard 1D and 2D barcodes.

What's the best barcode type for inventory?

Code 128 is the most versatile for internal inventory. It supports letters and numbers, works with all scanners, and has no licensing fees. Use UPC/EAN if retailers require it. QR codes work well for linking to detailed product information.

How much does barcode inventory software cost?

Ranges from free (basic tools) to hundreds per month (enterprise systems). For small manufacturers, expect $10-50 per month for capable barcode inventory control software. Krafte starts at €7/month and includes built-in scanning.

How do I add barcodes to products that don't have them?

Generate barcodes using your inventory software or free online tools. Print labels on a thermal label printer or standard printer with adhesive sheets. Apply to products, materials, or storage locations.

Tags: Inventory Management, POS Systems, Tracking