inventory control software

The question on which inventory control software would be implemented in a business is indeed a valid concern, especially with all the software choices available these days.  With all of the options out to outdo each other in term of features, cost and convenience, which should a business owner look for?

One of the most common features of these software options to manage inventory is classification or category tracking.  Although this is, as mentioned, already a common feature, there are still about 10 percent of software available in the market that does not have this capability.  This feature will come in handy as it tracks what is sold and how fast the products were sold by category.  So, the business owner can immediately spot which category (for example, women’s bags) are the fastest sellers so that inventory can be managed effectively, which categories have a spike in some months of the year (for example the swimwear category in June) and which show very slow sales movement.

If category tracking is present in 90 percent, department tracking slashes the choices by a further 15 percent, because only 75 percent of inventory control software choices have this capability.  Knowing which department is bringing in revenue and which department has still a lot of inventory will give the business owner a lot of information to make wiser business decisions.  Another feature that will add more information for more precise decisions is the matrix inventory.  Particulars like the size or color of a product are further separated, so the business owner knows which particular stock is moving fast – is it a certain color, style, flavor or size?

For businesses that sell items by serial number, software that tracks serial numbers would be very beneficial.  Products that have this would usually be bigger items like appliances and specialty items.  Thus, if an item is returned for replacement or for servicing, a businessman with a inventory control software that has serial number tracking allows can be immediately informed if the particular item is still within the return, service or replacement policy of the store.

inventory control

For anyone who has ever been to one of those big retailer stores that sell almost anything like K-Mart or Wal-Mart, the efficient and seemingly smooth sailing operations of these giant establishments can be attributed to one of the biggest triumphs of modern logistics – inventory control systems.  Almost every week, or in some cases, every day, retailers from the local neighborhood store to mega supermarkets welcome thousands of items into their stock sourced from different parts of the world.  Yes, stores these days do not only get items from their respective countries alone, and despite this seemingly unmanageable situation where deliveries of new items are being done while customers buy items by the minute, the systems implemented by these stores to control inventory has become a central in their smooth operations.

It has become imperative for businesses these days to adapt inventory control systems not only to maintain a smooth flow of operations, but also to inform them of which items in their inventory are “moving” fast, meaning are selling, that they need to stock up on.  Knowing which products are selling and which are just occupying shelf space would give the business owner enough information to know which items he would like to get more of, which to move from the warehouse to the store, and which to store for an upcoming spike in demand.

As of the moment, it can be argued that systems to manage or control inventory would only be a need for bigger business and just a whim for small vendors.  However, implementing a system would also be beneficial for small and medium enterprises.  By having inventory control systems, small stores can be more effective in maintaining as little stock as possible while making sure that there’s enough for the customer’s demands to be met.

Inventory Control System

Inventory control systems over the years have advanced to great lengths that these days, tracking of inventory has gone to the most specific level, which is to each item.  While it used to be that systems that control and manage inventory were still item centric, the level of attention given to each and every item in current control systems has gotten further that each item is tracked down to the time that it is purchased: with each beep that a scanned bar code at the checkout counter produced, a report is sent to the system that yet another item has left the store, and therefore one less product in the inventory.  These reports are given in real time, with every bar code scanned, and this shows how advanced the technology of inventory control has gone.

In the olden days of business, each product was also tracked down, but done in a manual manner.  The inventory control systems of the olden days depended much on the diligence of the shop owner ion tallying each and every purchase made, and based on daily figures, derive future needs.  The methods were very much dependent on the vigilance of the inventory keeper, which means any incident that is not related to sales but contributes to inventory figures, like for example, a theft, cannot be explained and therefore is just written off as a loss to the company.

The system of inventory management improved in the years after the Second World War, with the development of technologies to mark items for sale.  This, with the advancement of affordable laser technology in the 60s, made scanning an inevitable part of managing inventory.  In the 1970s, UPC or the Universal Product Code was perfected, exponentially improving inventory control.  In the 1990s, with the full explosion of software and computer technology, modern inventory control systems were finally implemented, with all processes, from ordering, monitoring of inventory, and tracking of purchases then back to reordering, keenly monitored.

inventory control software

It cannot be denied that these days, for businesses to really realize their optimum performance, especially in terms of profits, they should implement effective inventory control software in their operations.  With software dedicated to controlling inventory, not only can these businesses be more efficient in managing their stock, but they would also be better guided in other facets of their business, such as deciding on purchases and shipping, facilitating sales and promotions, and keeping track of the overall performance of the business. This software is an indispensable tool from back office operations to the workhouse or storage area, continuing to the actual retail floor, resulting to increased profitability and an overall improvement of the business.

Choosing the right inventory control software can be a challenge for retail businesses nowadays, especially since there are more and more software models available, outdoing each other in terms of features and price.  There is even some software for managing inventory that can be downloaded for free!  So, how does a businessman choose which software would be beneficial for his business?  One factor that a lot of business owners that may be blinded with are the number of features that software offer.  Some software models offer so many add-ons and features that are supposed to aid the business.  Experienced businesses suggest that the person choosing the software should not be blinded by these and instead focus on looking for something that has exactly what the business needs.  Worse than being blinded by unnecessary add-on features are businessmen who don’t have an idea of what their business really needs until after a purchase has been done already.

Moreover, whatever system chosen should be compatible with the system that the business’ suppliers are using.  This would ensure a smooth flow of transactions between the retailer and the supplier.  Lastly, these inventory control software actually provide business owners reports depending on their capabilities, so it should be to the business owners’ advantage to actually go through these reports, not just to check if there are any discrepancies between what is reported and what is actually present in the stockrooms and stores, but also use the data to formulate better business decisions.

inventory control

In the past, retailers were content with having enough stock of their products so that when customers walk into their store, they have something to sell. That used to be what the concept of Inventory Control used to mean in those days. This line of thinking is not enough in today’s business environment anymore. Nowadays, having enough inventory in your stock room is just one part of the many things that you need to keep track of.

You need to plan the arrival of goods such that you will have the new stocks coming in only when the old ones are almost gone. While you do not want to have empty shelves on any given day, ordering too much on the other hand will expose you to higher costs of holding too much inventory, as well as the risk of ending up with outdated stock that will cause you to lose money instead of turning in a profit.  This is quite a balancing act that you easily accomplish if you are able to identify a regular pattern of the buying habits of your customers for your product. These are basically the elements that make up modern Inventory Control processes.

Customer demands for your products can be predicted especially if you use a computerized system in keeping track of your inventory or the movement of your products starting from when you order a new shipment to the point of sale. For modern retailers, technology is on their side as there are many types Inventory Control Software available nowadays. These programs will make this essential balancing act easy to do. Once you have a good system in place, the potential for profit will be greater.