How an Inventory Management System Works

If you are a small business owner, you will understand how difficult it is to organise your stock effectively. It may be the case that you stock hundreds, maybe even thousands of individual items, so how are you to know when any one of these items is running low on stock and needs to be replenished? This is where an inventory management system comes in. If you’ve ever visited the supermarket or a large wholesaler, you will have seen this kind of system being put into action. Here are some of the key factors which an inventory management system works around.

Scanning at Your Point of Sale

The chances are that every time you go shopping, you visit dozens of stores that use either an electronic cash register or a point of sale system. Whenever an item is scanned through one of these two devices, it is registered as sold. A report can then be compiled which will give you an instant view of how much of a particular line you have sold and what stock needs to be reordered at the end of the day. The alternative to this is a painstaking process of writing down everything you have sold during the day and checking that against your stock records from the previous night. This is a logistical nightmare and anyone looking to expand their business operations will find it extremely hard if they’re managing their inventory the old fashioned way.

inventory management system

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A Stock Report is Produced

As already mentioned, a stock report is produced bases on what has sold in your store during the day. This can either be viewed on a regular computer, or if you’re serious about digital inventory management, on a handheld scanner. Going into more detail, this stock report can give you extensive feedback on how well each of your lines is selling, doing everything from alerting you when you need to order more stock of a certain item to identifying items that aren’t selling well. Finding out about items that aren’t selling well is just as important as recognising those that do; you may be better of cutting your losses on stock that doesn’t sell particularly well and using the space in your stockroom for something different that may generate more revenue.

Enjoy the Benefits

Once your inventory management system has done its job, you can sit back and enjoy the benefits of running such a system within your company. You will have a lot more time on your hands now; stock checks will take a matter of seconds instead of a matter of hours. Your stockroom or warehouse will have been optimised so that better selling products have been organised closer to the shop floor for the ease of your employees, you can also feel safe in the knowledge that you will always have the right amount of stock to cater to your customers needs. Best of all, an inventory management system will be extremely cost effective. You won’t have to waste man-hours on stock checks or worry about large levels of excess stock ever again.

Posterita is an inventory management system that allows chain stores and single stores to manage their operations easily on a web based platform.

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