Inventory management software is a computer-based system for tracking inventory levels, orders, sales and deliveries. It can also be used in the manufacturing industry to create a work order, bill of materials and other production-related documents. Companies use inventory management software to avoid product overstock and outages. It is a tool for organizing inventory data that before was generally stored in hard-copy form or in spreadsheets. It is often associated with and is similar to distribution software. ————————————————-
Inventory management software is made up of several key components, all working together to create a cohesive inventory for many organizations’ systems. These features include:
Should inventory reach a certain threshold, a company’s inventory management system can be programmed to tell managers to reorder that product. This helps companies avoid running out of products or tying up too much capital in inventory.
When a product is in a warehouse or store, it can be tracked via its barcode and/or other tracking criteria, such as serial number, lot number or revision number. Nowadays, inventory management software often utilizes barcode, radio-frequency identification (RFID), and/or wireless tracking technology.
Companies that are primarily service-oriented rather than product-oriented can use inventory management software to track the cost of the materials they use to provide services, such as cleaning supplies. This way, they can attach prices to their services that reflect the total cost of performing them.
Barcodes are often the means whereby data on products and orders is inputted into inventory management software. A barcode readeris used to read barcodes and look up information on the products they represent. Radio-frequency identification (RFID) tags and wireless methods of product identification are also growing in popularity. ————————————————-
The Universal Product Code (UPC) was adopted by the grocery industry in April 1973 as the standard barcode for all grocers, though it was not introduced at retailing locations until 1974. This helped drive down costs for inventory management because retailers in the United States and Canada didn’t have to purchase multiple barcode readers to scan competing barcodes. There was now one primary barcode for grocers and other retailers to buy one type of reader for. In the early 1980s, personal computers debuted and started becoming popular.
This further pushed down the cost of barcodes and readers. It also allowed the first versions of inventory management software to be put into place. One of the biggest hurdles in selling readers and barcodes to retailers was the fact that they didn’t have a place to store the information they scanned. As computers became more common and affordable, this hurdle was overcome. Once barcodes and inventory management programs started spreading through grocery stores, inventory management by hand became less practical. Writing inventory data by hand on paper was replaced by scanning products and inputting information into a computer by hand. Starting in the early 2000s, inventory management software progressed to the point where businesspeople no longer needed to input data by hand but could instantly update their database with barcode readers. ————————————————-
Companies often use inventory management software to reduce their carrying costs. The software is used to track products and parts as they are transported from a vendor to a warehouse, between warehouses, and finally to a retail location or directly to a customer. Inventory management software is used for a variety of purposes, including: * Maintaining a balance between too much and too little inventory. * Tracking inventory as it is transported between locations. * Receiving items into a warehouse or other location.
* Picking, packing and shipping items from a warehouse.
* Keeping track of product sales and inventory levels.
* Cutting down on product obsolescence and spoilage.
Manufacturers primarily use inventory management software to create work orders and bills of materials. This facilitates the manufacturing process by helping manufacturers efficiently assemble the tools and parts they need to perform specific tasks. For more complex manufacturing jobs, manufacturers can create multilevel work orders and bills of materials, which have a timeline of processes that need to happen in the proper order to build a final product. Other work orders that can be created using inventory management software include reverse work orders and auto work orders. Manufacturers also use inventory management software for tracking assets, receiving new inventory and additional tasks businesses in other industries use it for.
In many cases, a company’s inventory represents one of its largest investments, along with its workforce and locations. Inventory management software helps companies cut expenses by minimizing the amount of unnecessary parts and products in storage. It also helps companies keep lost sales to a minimum by having enough stock on hand to meet demand.
Inventory management software often allows for automation of many inventory-related tasks. For example, software can automatically collect data, conduct calculations, and create records. This not only results in time savings, cost savings, but also increases business efficiency.
Inventory management software can help distributors, wholesalers, manufacturers and retailers optimize their warehouses. If certain products are often sold together or are more popular than others, those products can be grouped together or placed near the delivery area to speed up the process of picking, Updated data
Up-to-date, real-time data on inventory conditions and levels is another advantage inventory management software gives companies. Company executives can usually access the software through a mobile device, laptop or PC to check current inventory numbers. This automatic updating of inventory records allows businesses to make informed decisions.
With the aid of restricted user rights, company managers can allow many employees to assist in inventory management. They can grant employees enough information access to receive products, make orders, transfer products and do other tasks without compromising company security. This can speed up the inventory management process and save managers’ time.
Insight into trends
Tracking where products are stocked, which suppliers they come from, and the length of time they are stored is made possible with inventory management software. By analyzing such data, companies can control inventory levels and maximize the use of warehouse space. Furthermore, firms are more prepared for the demands and supplies of the market, especially during special circumstances such as a peak season on a particular month. Through the reports generated by the inventory management software, firms are also able to gather important data that may be put in a model for it to be analyzed. ————————————————-
Cost can be a major disadvantage of inventory management software. Many large companies use inventory management software, but small businesses can find it difficult to afford it. Barcode readers and other hardware can compound this problem by adding even more cost to companies. The advantage of allowing multiple employees to perform inventory-management tasks is tempered by the cost of additional barcode readers.
Inventory management software is not necessarily simple or easy to learn. A company’s management team must dedicate a certain amount of time to learning a new system, including both software and hardware, in order to put it to use. Most inventory management software includes training manuals and other information available to users. Despite its apparent complexity, inventory management software offers a degree of stability to companies. For example, if an IT employee in charge of the system leaves the company, a replacement can be comparatively inexpensive to train compared to if the company used multiple programs to store inventory data.
II. Background of the Study
The name of the company was Shoes Store in which it established selled products or items to the public. It was located at Gate 3 Plaza, Fort Bonifacio, Taguig City.This store composed of different kinds of brands of shoes like Ipanema, Sandugo, Puma, Nike, and Crocs. They pay rent every month. A method of business growth they are putting more best-selling products commonly purchased by the costumer.The time of opening and closing the store from 8:30 am to 8:00 pm. But when a vendor exceeds the opening of the store an hour he will pay 200 pesos there admin. Talking about the price of the product is based on the brand of it.
III. Statement of the problems
1. They consume lots of time in writing those products in the log book. Specific Problem
o1. Sometimes the seller forgot those products to compile in the log book. 2. Sometimes they forget the price of the items.
IV. Objectives of the study
1. Companies often use inventory management software to reduce their carrying costs. Specific objectives
1. It is easy for them to put those sold items.
2. It easy to know the prices of the items because it has been recorded in the Inventory system.
V. Significance of the Study
To the company
Store – They identified the store because of the use of computerized systems.
To the User
Saler- easy to know the prices of the items because it has been recorded in the Inventory system.
To the Researcher
They will serve as a guide in getting some information about the individual differences of the price. They can consume less of time in finding the items in their log book.
VI. Scope and Limitation
We simply must do is to facilitate the placement of items and to assist them. Nor do they need to memorize those other products. Also, do not lose more as the forgotten place in the logbook as recorded in this system. In the database we created, it can be sold to companies that require easier system of making inventories in their products.
VII. Definition of terms
Optimization is the discipline of adjusting a process so as to optimize some specified set of parameters without violating some constraint. Inventory management is primarily about specifying the size and placement of stocked goods. Barcode is an optical machine-readable representation of data relating to the object to which it is attached. Computer software, or just software, is any set of machine-readable instructions (most often in the form of a computer program) that directs a computer’s processor to perform specific operations. Cohesion (chemistry), the intermolecular attraction between like-molecules Spreadsheet is an interactive computer application program for organization and analysis of data in tabular form.
Spreadsheets developed as computerized simulations of paper accounting worksheets. Complexity tends to be used to characterize something with many parts in intricate arrangement. The study of these complex linkages is the main goal of complex systems theory. Workforce is the labor pool in employment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic region like a city, country, state, etc. Logbook was originally a book for recording readings from the chip log, and is used to determine the distance a ship traveled within a certain amount of time.