Which Inventory Tracking Technology Fits Your Stockroom, Trucks, and Jobsites?

Point-of-use inventory only works when usage is captured consistently. If transactions get missed, on-hand counts drift, replenishment becomes reactive, and small issues turn into stockouts that stop work. The best tracking technology is the one your team will actually use in the places inventory gets consumed: the stockroom, the truck, and the jobsite.

Why Accurate Data Collection Matters for Point-Of-Use Inventory

When inventory is used at the point of work, the system is only as accurate as the data collection method behind it. Missed issues add up fast: the part is “in the system” but not in the bin, the truck carries extras “just in case,” and the stockroom over-orders because no one trusts the numbers. Over time, those gaps show up as expediting, downtime, and inflated carrying costs.

In most operations, accuracy problems are not caused by a lack of effort. They usually come from a workflow that is too easy to bypass. That is why many teams compare manual vs automated inventory management approaches based on where the process breaks down: receiving, picking, job usage, or replenishment.

Inventory Data-Collection Technologies Overview

Barcodes And QR Codes

Barcodes and QR codes are the most common entry point for inventory data collection because they are inexpensive, flexible, and easy to scale across shelves, bins, and truck stock. They work well when the scan step fits naturally into the moment of use. If the scan adds friction, it gets skipped, and accuracy drops.

For point-of-use inventory, the difference between QR codes vs barcodes often comes down to how much information you need to put on the label. QR codes have expanded the possibilities for inventory tracking, allowing for more in-depth information storage without the concern of physical printing space for the code. Unlike barcodes, QR codes can store a vast amount of information in a compact space, without the size changing significantly. This makes QR codes ideal for encoding various types of data, from item specifics to tracking histories.

Electronic Shelf Labels (eLabels)

Electronic shelf labels support accuracy by keeping bin-level information visible on the shelf and providing one of the simplest ways to trigger replenishment: the push of a button.

Electronic shelf labels, are convenient for doing customer-managed inventory replenishment (CMI) in dispersed stocking locations where weighted bins may not be practical (if they are too big or if they can’t be plugged into electricity), where spreadsheets take too much time, and where QR code scanning to order or consume inventory is not desired. 

eLabels can also reduce the constant relabeling that happens when bins get reorganized or min/max levels change. Min/max settings, par levels, and package quantities are recorded in the software and used by the eLabel for replenishment. 

If a business is currently using a 2-bin kanban inventory replenishment process, it can reduce on-hand inventory by half by moving to a 1-bin system with eLabels on each of the bins to trigger replenishment orders when needed.

Weighted Bins

Weighted bins work best when the real failure point is not inventory logic, but transaction capture. High-velocity consumables get used quickly, by multiple people, often in small quantities that are inconvenient to record one-by-one. In those situations, automating usage capture can be more reliable than adding more training or more reminders.

This approach is especially useful for consumable inventory like fasteners, fittings, connectors, PPE, and other items that disappear steadily throughout the day. SensorBins are a strong fit when “we forgot to scan it” is the main reason counts stop matching reality.

RFID

RFID is usually chosen when phone scanning becomes too slow, too inconsistent, or too dependent on perfect label conditions. It can reduce manual handling during audits and can be a strong fit for higher-value items, controlled materials, or situations where faster verification matters.

RFID success depends heavily on how reads are captured and where the interaction happens. Portals, cabinets, handheld sweeps, and receiving checkpoints all change what RFID is good at, and what it will miss.

A popular RFID solution is the 2-bin Kanban system with an RFID reader box called FASTBin from Fastenal, and a similar RFID solution from eTurns. With these systems, shelves are set up with a 2-bin Kanban system where each bin has an RFID tag. Empty bins are placed in the RFID reader locker at the top of the shelf system, where the reader triggers an automated order to the distributor.  

Pros, Cons, And Cost Ranges

Costs vary by vendor, volume, and site conditions, but these ranges are useful for rough planning.

Barcodes / QR Codes

• Pros: low cost, fast rollout, flexible for stockroom and truck use

• Cons: depends on scanning consistency, labels can get damaged, misses accumulate

• Cost range: low (labels + phone or scanner)

Electronic Shelf Labels (eLabels)

• Pros: strong shelf clarity, fewer mis-picks, less relabeling overhead

• Cons: higher upfront cost, cannot provide quantity on hand data 

• Cost range: medium to high (labels + mounting + system)

Weighted Bins

• Pros: automatic usage capture, produces quantity-on-hand data, strong for high-velocity consumables, reduces manual touches

• Cons: better for specific item types, needs consistent bin usage and setup

• Cost range: medium to high (sensor bins + system)

RFID

• Pros:  fast method to send re-orders at scale, more practical way to control small items 

• Cons: doesn’t display quantity on hand data, higher hardware and implementation costs

• Cost range: medium to very high (tags + readers + rollout support)

How To Choose The Right Technology

Environment (Stockroom, Truck, Jobsite)

A stockroom can support almost any method because the environment is controlled, power is available, and processes can be standardized. Truck inventory adds movement, tighter space, and faster usage, which makes low-friction capture more important than perfect process design. Jobsites add uneven connectivity, weather, dust, and time pressure, so the method needs to be durable and easy to execute.

Item Profile (Value, Turnover, Stockout Risk)

Tracking methods should match item behavior, not just item count. A high-value part with low turnover needs tighter control, while a high-turnover consumable needs speed and consistency. If a stockout stops work, reliability matters more than the prettiest process.

A simple way to map items is:

• High value / controlled

• High velocity consumables

• Critical items (stockout stops work)

Then match the technology to the category that creates the most pain today.

Power/Internet And Workflow Fit

The key decision is where usage gets recorded. If the “record” step happens after the work is done, it will get missed. If it happens at the shelf or at the moment of consumption, accuracy improves. If the environment cannot support reliable scanning or connectivity, the workflow needs to tolerate offline use or reduce manual steps.

Budget And Training

Upfront cost is only one part of the decision. Labor spent correcting drift, rushing orders, and recounting bins often costs more than the technology itself. Many teams set expectations by anchoring the verification layer around inventory cycle counting best practices so accuracy stays measurable after rollout.

Inventory Technology Comparison

Simple ROI Formula

Annual ROI (%) = ((Savings − Annual Cost) ÷ Annual Cost) × 100

Savings typically come from:

• fewer stockouts and less downtime

• less expediting and same-day purchasing

• lower overstock created by distrust in counts

• reduced labor spent on recounts and reconciliation

A quick way to estimate stockout impact:
Monthly Stockout Cost = (number of stockouts) × (hours lost per stockout) × (loaded labor rate)

Implementation Checklist

1. Define a small rollout scope (one area, one truck group, or one consumable category)

2. Standardize item data, units, and locations

3. Decide where transactions happen and keep the step frictionless

4. Apply durable labels and consistent placement rules

5. Train only the handful of actions that matter day-to-day

6. Set a cadence that uses cycle counts as verification, not as a rescue plan

7. Review accuracy, stockouts, and labor after 30 days before expanding

A Hybrid Solution May Be The Answer

In many operations, the best setup is hybrid: scanning where it is easy and automation where scanning gets skipped. That usually means combining core workflows with targeted automation for high-velocity consumables and high-risk bins. Fortunately, VMI apps like TrackStock allow for use of multiple technologies even within the same stockroom.