PREPARED BY
SONIA MAHINDRU
ASSISTANT PROFESSOR IN COMPUTER SCIENCE
HANSRAJ MAHILA MAHA VIDYALAYA JALANDHAR
INVENT0RY CONTROL SYSTEM
INTRODUCTION
An inventory control system is a technology solution that manages and tracks a company's goods through the supply chain. This technology will integrate and manage purchasing, shipping, receiving, warehousing, and returns into a single system.
The best inventory control system will automate a lot of manual processes. It will provide an accurate picture of what inventory you have, where it is, and when you need to reorder to keep your stock at optimal levels.
TYPES OF INVENTORY SYSTEMS
Perpetual inventory system.
A perpetual inventory control system tracks inventory in real-time. As soon as a product is sold, its barcode is scanned and it is removed from a global inventory database. When one is received, it is scanned and added to the inventory database. Each part of the system has access to the same database and information.
A perpetual inventory provides a highly detailed view of inventory changes and an accurate accounting of inventory levels without the need for manual inventory counts. It is suitable for all sizes of businesses and is necessary for stores with high sales volume or multiple locations.
TYPES OF INVENTORY SYSTEMS
Periodic inventory system
A periodic inventory system is kept up to date by a physical count of goods on hand at specific intervals. With a periodic inventory system, a business will not know how many products it has until after the physical count is completed. It is easy to see how this can be a problem when it comes to filling orders. Your stock count was accurate weeks or months ago, but now when a customer wants to buy, you have to physically check your inventory to see if you have it to sell.
ADVANTAGES
Real-time inventory levels
A perpetual inventory system will update inventory levels globally whenever a product is sold, purchased, manufactured, or returned. With an accurate real-time inventory, you can analyze inventory flow to set effective reorder points. This helps eliminate out-of-stock situations and excess inventory. Real-time inventory levels improve customer relationships by preventing backorders and improving employee relationships by giving them an accurate view of inventory status.
ADVANTAGES
Financial savings
There are many ways inaccurate inventory can cost you. If you don't have a product in stock, a customer could cancel an order and buy that product somewhere else rather than wait on a backorder. On the other hand, an inaccurate inventory can also lead to excess stock which will increase storage cost, insurance cost, and taxes. An inventory control system will save you money by keeping inventory at optimal levels.
ADVANTAGES
Reduce manual labor inaccuracies
Physical inventory tracking can be prone to errors and fraud. By tracking a product from purchase order to customer delivery, an inventory control system will take human error and theft out of the equation.
ADVANTAGES
Improve customer satisfaction
In this day and age of next-day or even same-day delivery, customers expect to get their orders quickly. If your inventory is inaccurate, a customer could order an item you show in stock but don't actually have. This could result in a backorder or canceled order, which can lead to an unhappy customer who may not order from your store next time.
ADVANTAGES
Optimize your logistic workflow
Your supply chain is complex. There are a lot of steps involved in getting a product to your customer. An effective inventory control system will not only allow you to track a product each step of the way, but also give you the tools to find bottlenecks in your logistic workflow. This gives you more time to work on improvements.
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