Inventory management refers to how a business keeps track of what it currently has in stock, what is on its way, what is being moved between locations, where a specific item can be found, what needs to be reordered, and so forth.
As a business owner, your customers expect a certain product at a certain time. If you are interested at all in your rate of customer satisfaction, then you will want to be able to meet the demand. Therefore, knowing where you stand with your inventory is crucial.
Many inventory tracking systems also involve warehouse layouts. This means knowing where everything is stored – as well as knowing how to find it efficiently.
Not every business handles these tasks the same way. Let’s take a look at a couple of different types of inventory management systems.
Periodic Inventory Management System
A periodic inventory system is one that tracks inventory at certain intervals. This could be weekly, monthly quarterly, or annually based on your accounting methods. The management system here is often manual with each piece of inventory physically countered and recorded by hand.
This is a simple system that is best used for those who don’t need to maintain a highly accurate accounting on a daily basis. Though, unfortunately, periodic inventory management can lead to a lot of inaccuracies – and difficulty in keeping track of things like theft and loss.
It should be noted that a periodic inventory system does not assist in locating where assets are being stored.
Perpetual Inventory Management System
As its name suggests, a perpetual inventory management system is one that is designed to continuously track inventory. In other words, when something is used, it is recorded and is then no longer reflected as current inventory.
This type of inventory management system requires point-of-sale software. Anytime something is bought, it can then be updated so that inventory levels are always accurate.
Most large businesses have some sort of perpetual inventory management system. They must invest in different systems that work together to keep track of the numbers as they relate to inventory. Still, however, an annual manual inventory must be done to ensure the accuracy of the numbers.
With this type, too, the location of assets is not the focus.
Barcode Inventory Management System
A barcode inventory management system tracks items using a barcode. Many businesses – primarily retail locations – use a Universal Product Code (UPC) that comes from the manufacturer. This code is specific to an item and can help monitor inventory as it comes and goes.
Another type of barcode – a Stock Keeping Unit (SKU) – is created by companies for their own internal control. Scanning it can tell you what an item is, where it can be found, and the many specific details about it. Today, many even use QR codes in the same way. Accessing this information from a centralized location makes this a highly effective option for inventory management. You will always know every detail about your inventory from how many you have to where they are – and everything in between.
Inventory Management at Tracmor
If you have been searching for the most effective way to manage your inventory, then you won’t want to miss what Tracmor has to offer. With the ability to manage shipments, run reports, monitor inventory levels, create barcodes and QR codes, and so much more, there will be nothing blocking your visibility. You will know just how much inventory you have – and where to find it – all at your fingertips.
Contact us today to learn more. You can request a 15-minute live demo with one of our team members here or sign up for a 30-day free trial account here.
