Ready to Shift From Manual to Hi-Tech?

Inventory control remains one of the most important components that a business must ideally, keep a 100% accuracy in.  This is especially true when one’s business is involved products in bulk, like wholesale sunglasses. For product-oriented business, having the correct procedure for controlling inventory starts in the area where the inventory is kept, usually in the warehouse.  If the staff in the warehouse does its tasks in maintaining an accurate inventory count, then the other departments of the company, such as accounting, sales and purchasing, can also run smoothly.

Image source: Elm Logistics

For example, if the warehouse staff reports that the inventory for wholesale sunglasses for the summer is running low, then the purchasing department would do the necessary purchasing in the most beneficial scheduler, assuring that the items would arrive on time around May, just in time for the start of summer in Jun. That way, delayed shipment of items, missed opportunities in sales and loss of income can then be avoided.

One inventory control system or procedure that is common and has been practiced for the longest time among companies is manual counting.  Simply put, this is just the process of making sure that the physical inventory, as in the number of items still present in the shelves and warehouse is reconcilable with the inventory as stated in the records or “books” of the company.  In most instances, the warehouse would be closed for a number of days so that the workers can do a manual count of all the items still present in the warehouse.

This manual system has been replaced in most companies by cycle counting, or a computerized system that is set up to count 20 percent of monthly inventory.  That means in a year, the system is expected to complete an inventory for two and a half times.  The system is highly favored as there is almost no room left for human error and it is done without disrupting normal operations or the need to shut down.  Moreover, a report in this inventory control system can be printed out at any time someone in the company needs it.

Does this mean that your business should go computerized as well, to be one with the trends? That really depends on the scale of your business. If you are confident financially that your business has the resources to purchase the software and not go cash strapped, then go ahead! You would need to invest a lot for this venture, but you’ll get your dividends in the long run as long as your dedication to your business is not wavering.