What Is an Inventory Control System?
An inventory control system is a system that facilitates inventory operations, especially for companies with a large amount of inventory. The conventional method of counting all inventory one by one and comparing it with the number of items in the ledger book requires a lot of manpower and a huge amount of time.
Therefore, by managing each item with a barcode or IC tag and reading it with a handy scanner, the inventory verification process can be made easier. In addition, since the read data can be handled as-is in electronic form. It is easy to check whether the actual number of items in stock matches the number of items on the ledger sheet.
Uses of Inventory Control Systems
Since inventories are used to determine the current inventory status accurately, inventories can be used to calculate the cost of goods and profit. In other words, inventory control systems allows company to quickly and accurately determine its profits and help it determine its business strategy.
In addition, if the system is built to manage inventory counts in real time, it can be reflected in material procurement and product sales policies, as needed. Furthermore, errors in receiving and shipping can be quickly identified, leading to early resolution of problems.
Features of Inventory Control Systems
There are various ways to build inventory control systems, so it is important to consider the cost and benefits of implementing and operating the system in relation to the size of the inventory.
The first and easiest way is to use Excel for inventory management, where formulas and macros can be used to reconcile actual inventory counts with those on the ledger sheet. However, since the most time-consuming part of the inventory process, i.e., checking the inventory count and inputting it into Excel, is a manual process, it does not save a great deal of time.
The next method is to manage each item by barcode. By simply reading the barcode with a barcode scanner, the inventory can be checked smoothly, and by linking it to a PC, the time and effort of inputting the data can be eliminated. This reduces the number of inventory counting and entry errors.
Furthermore, if ID tag management is introduced, multiple items can be read at once while being placed on the shelf, eliminating the need to take items out one by one and read their barcodes. Robots can also be combined to create an unmanned automated system.