Drawbacks of using stores codification are:
1. Codes are not misunderstood generally as they are put to use only when they are fully explained and extensively practised. But human element is at work, unconsciousness, wrong belief, false notion, oral version and non-verification is the common attitude of those who are at work.
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Naturally, there is a chance of misunderstanding. Better control of papers, active co-operation of all concerned and a sense of responsibility on the part of those who are at work may remove this demerit of codification without much hue and cry.
2. With the increased use of mechanical recording dummy codes have come to stay. The statements and returns submitted to the management with the help of mechanized system are prepared with dummy codes. The dummy codes are non-existence in code index; hence invite no references to the index, resulting in more paper work and involving lot of time and energy on the part of the assistant.
Of course, secrecy through dummy codes may also be maintained, but for only this advantage it is not advisable to have dummy codes. Mechanical devices should be so arranged and used that a greater use of regular codes in statements and other records is ensured. This is now being tried with varying degree of satisfactory results.
3. Generally, customers or people do not understand coded numbers and, therefore, they do not know anything about the item from the codes.
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4. It involves longer time and more energy to detect coding error. Sometimes, it may be an impossible exercise. However, if one takes the task, then, one has to go from page to page. So, it is a costly job, which sometimes may not be worth undertaking.
5. The effectiveness of codification system depends on a ‘check-uptime’ for verification of codes allotted from time to time, place to place etc. In normal circumstances this check up time may not succeed in verifying the codes at all times, in all places. And in spite of the alertness of the store management some mistake in coding may come. A busy or a new assistance may err somewhere accidently and unknowingly and his error may bring disaster to any of the departments affected by his error.
6. Code numbers may bring confusion and the advantage of codification may not be achieved fully if in one group a large number of items are put and codes are allotted.
Sometimes, the stores management people find it difficult to select codes that are easily understandable and that are capable of giving each item a clear and distinct character signifying its nature and meaning.
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Hence, confusion may arise. Of course, this is not demerit of codification. If a certain management is unable to separately deal with its large number of items, codification system is not to be blamed for it.