A company has to have inventory management in order to track its goods and services.If you do not know what is available, then you cannot use it to your advantage.There are two kinds of inventory systems.They are perpetual and periodic.They differ in the way that they are updated.This article is going to discuss the perpetual system.
With the perpetual system, the inventory is always updated.The system is update for when orders are shipped, placed or received.This is because computers can operate in real time.When product is received, it is put into the system via bar coding technology.Everyone seems to like this system because the info is always updated.You know that you info will be the most recent that is available.
But mistakes can happen due to human error.You will only get fresh info when the information is keyed into the system.It cannot be seen, analyzed or corrected if it is never keyed into the system.This is why the information has to go in once an order is placed, shipped or received.
Obviously, all systems will have good and bad features.Other than real time updating, one of the main benefits of using the perpetual inventory control system is that it is a time saver.For instance, sales personnel must know how much inventory is in stock before they can sell it to potential customer.This is really true for a same day delivery.This information can be pulled from the salesperson's laptop or phone.This info is convenient.It is a good way to check product before placing an order for an customer.
Previously, the salesman would have had to call someone back at the office to get this information.Many times this would have meant sending someone out to the warehouse in order to do an actual physical count of the inventory.For some companies, this might take hours.This is why the perpetual system is popular.It saves everyone time and headaches.
When it comes to the perpetual inventory system, there are few cons.The loudest complaint is that it is a huge upfront investment.The software for this type of system is not cheap.But, once you get past this, it is a great system.Also, if you have to enter the info, then this can be quite time consuming.The database has to be maintained.
There are both disadvantages and advantages, but it is a great inventory management system.
With the perpetual system, the inventory is always updated.The system is update for when orders are shipped, placed or received.This is because computers can operate in real time.When product is received, it is put into the system via bar coding technology.Everyone seems to like this system because the info is always updated.You know that you info will be the most recent that is available.
But mistakes can happen due to human error.You will only get fresh info when the information is keyed into the system.It cannot be seen, analyzed or corrected if it is never keyed into the system.This is why the information has to go in once an order is placed, shipped or received.
Obviously, all systems will have good and bad features.Other than real time updating, one of the main benefits of using the perpetual inventory control system is that it is a time saver.For instance, sales personnel must know how much inventory is in stock before they can sell it to potential customer.This is really true for a same day delivery.This information can be pulled from the salesperson's laptop or phone.This info is convenient.It is a good way to check product before placing an order for an customer.
Previously, the salesman would have had to call someone back at the office to get this information.Many times this would have meant sending someone out to the warehouse in order to do an actual physical count of the inventory.For some companies, this might take hours.This is why the perpetual system is popular.It saves everyone time and headaches.
When it comes to the perpetual inventory system, there are few cons.The loudest complaint is that it is a huge upfront investment.The software for this type of system is not cheap.But, once you get past this, it is a great system.Also, if you have to enter the info, then this can be quite time consuming.The database has to be maintained.
There are both disadvantages and advantages, but it is a great inventory management system.
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