When it comes to managing inventory, there are three main ways to do it:
- On paper.
- With Excel spreadsheets.
- Using inventory management software.
On Paper
Managing inventory with a pen and paper seems like an easy proposition. It just takes your time and a little ink and paper. It’s inexpensive in the fact that you don’t have to pay much for the supplies. But it’s expensive in the fact that it takes a lot of time to manually update your inventory records every time you make a change. This is very limiting because the papers containing inventory data can’t be viewed by multiple people in different locations. Also, they can easily get misplaced, lost, stolen, or destroyed. And they aren’t easily replaced.Spreadsheets
The nice thing about Excel is that it can be used for storing all sorts of information, including inventory data. This includes such things as vendor names, order numbers, and product quantities. Someone with the right skill set can adapt Excel spreadsheets to transform them into a full-blown inventory management system. But if the worker who created your Excel inventory management system ever leaves your company, you’ll most likely be up the river without a paddle. They probably won’t leave behind detailed notes on how to use the system, so you might have to start over from scratch. Also, Excel can’t be automated to instantly add new entries when you make changes to your inventory. You’ve got to do all of that by hand.Inventory Management Software
Inventory management software allows you to automate numerous processes by in a variety of ways, such as:- Setting up automatic reorder points on all of your parts and products.
- Using barcode scanners in your daily operations.
- Speeding up the ordering process.
- Quickly picking orders in batches or one at a time.
- Receiving goods into a warehouse with speed and precision.