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Item Codification

If you already have a full-fledged business with a number of physical items, you would have probably coded your items. If you have not, you have a choice. We recommend that you should codify if you have lot of products with long or complicated names. In case you have few products with short names, it is preferable to keep the Item Code same as Item Name.

Item codification has been a sensitive topic and wars have been fought on this (not joking). In our experience, when you have items that cross a certain size, life without codification is a nightmare.

1. Benefits​

  • Standard way of naming things.
  • Less likely to have duplicates.
  • Explicit definition.
  • Helps to quickly find if a similar item exists.
  • Item names get longer and longer as more types get introduced. Codes are shorter.

2. Challenges​

  • You have to remember the codes!
  • Harder for new team members to pick up.
  • You have to create new codes all the time.

3. Example​

You should have a simple manual / cheat-sheet to codify your Items instead of just numbering them sequentially. Each letter should mean something. Here is an example:

If your business involves wooden furniture, then you may codify as follows:

Item Codification Summary Sheet (SAMPLE)

First letter: \