Good inventory control does not just mean being able to report what is in stock or on inventory at any one time, it is also being able to provide information on stock coming in and stock going out as those are important to the management for planning purchases. Of course though good inventory management should be able to tell what is on inventory at any one time and perhaps even give the value of that inventory. For planning purposes all this information and more may be needed in report format even accompanied by graphs in certain instances. Obviously if all of this was to be done by hand manually, it requires a lot of work but that is what used to be the case, today though inventory software can easily and quickly accomplish these things with minimal manual work necessary. By using software, businesses can have their inventories maintained easier and cheaper yet reap extra benefits such as up to the minute reports, specifically formatted for easy understanding and accompanied with graphs if needed. The fact that a minimal amount of manual action is necessary also means that there is less chance of human error. If a typist makes a mistake, it can be easily noticed and asked to be corrected but if data being entered into an inventory is entered incorrectly, it may never be noticed which could result in the business losing money. With the choice inventory software available today though, as the software can read bar codes, there is little room for human error as all they do is scan the items and the software then does the rest.
There is a variety of different inventory software available today but the better ones not only can read bar codes but they can also manage inventory by batch numbers, expiry dates and serial numbers. For this reason, although most businesses already have inventory software that they use, they should review its merits as early software were limited in their capabilities resulting in many businesses still having to maintain records, of batch numbers by hand. As any form of manual inventory control, even for just those items that have batch numbers or serial numbers, is very labour intensive, it is also very expensive. By updating their system to new software, a business can not only save money but have a more reliable and faster inventory management.
The inventory is one of a business’s main assets and so it is important that that asset is properly managed in as a professional manner as possible, not only because it is an asset but also it is very important for planning purposes, such as knowing how much cash will be needed for replenishing the inventory. Proper inventory management should also be able to provide the amount of profit that is made on the inventory. Poor inventory management can result in products not being available for sales which would result in less profits and could fail to show where loses are being made, perhaps through pilfering.