In the retail business, the inventory system helps you keep a fine and accurate track of your business products and goods. Inventory is a very essential part of your business as it is evident that a good inventory system can grow your business and vice versa. If you are not properly keeping track of your inventory you can never maximize your profitability in business. Additionally, you are in the position of running out of cash since you are paying the suppliers before getting paid by your customers. Thus, proving that in most cases the cash conversion cycle is not in your favor and the whole process is not that simple to understand.
Main Types of Inventory System:
There are two main types of inventory systems which are listed below:
- Perpetual Inventory System
- Periodic Inventory System
Difference between Perpetual and Periodic Inventory Systems:
The vital difference between the two types of inventory systems is genuinely the frequency that how often the inventory is updated.
1.The Perpetual Inventory Method:
The perpetual inventory method is the one in which inventory data keeps updating regularly. At the time of placing or receiving an order, that data is instantly entered into the system resulting in the update of the system. The input of data is perpetual and continuous as opposed to the periodic system.
2.The Periodic Inventory Method:
The periodic inventory method is the one in which inventory data gets updated after a particular gap of time. Mostly after a year or six months, the data is updated. The term periodic means the frequency of the data modification is based on the time calendar.
Which Inventory System is more effective?
It is clearly understood that the perpetual inventory system is more effective and efficient as compared to the periodic inventory system.
The Perpetual inventory system requires cloud-based technology and Online Inventory Management Software becomes compulsory. Today, most businesses are utilizing the perpetual inventory system along with the service of automated software. The processing of all calculations is computerized so a cloud-based system best suits your requirements of business growth and efficiency.
The Right Decision of Choosing a Cloud-based Inventory Software:
One of the best business decisions ever made is to start the utilization of cloud-based software. A cloud-based inventory software comes with the following benefits:
- Relying on physical storage is an old idea, whereas the latest approach to resource management and cost-effectiveness forces you to adopt the best cloud software.
- Just through a consistently working internet facility, you can stay online in your business and this online software can help you achieve great targets in less period.
- You can globally access your business information from any part of the world. Now your business and recreational trips are not banned and the technology of your business allows you to travel abroad while monitoring the business metrics especially the inventory records.
- The analytical reporting of your business’s inventory system lets you have a look at the complete insights of your business. Which products are defeating the highest records of sales and which products are most underrated?
- Although the internet is not a secure connection with the feature of data encryption this problem is solved. You can stay stress-free about the security of your data.
- Hence there is no better option than cloud-based inventory software as far as the latest technology is concerned. Every minute backup makes it more appealing to the customers to purchase and implement it in their businesses.
- Online Inventory Management Software helps you achieve the most accurate results of inventory management within a defined fiscal period.
The Main Features of an Inventory Software:
The vital features of an inventory cloud-based software are too many to be discussed here. Although some of the features are delineated below:
This module includes all the purchase quotations, purchase orders, and purchase invoices. Also, it includes the information and set up of all the suppliers and how they function and are chosen while making invoices. All the record is kept in a secure database.
The sales module entails all the features regarding sales like sales quotations, sales orders, and sales invoices. Each invoice (both purchase and sales) contains the tax calculation per item and invoice termed as the item tax and global tax.
Warehouse stock can be checked and further transferred from one source warehouse to a destination warehouse. You can hold the complete record of transferring stock in your database.
4.Batch and Serial Numbers:
With the inclusion of batch and serial functionality you can keep a stern record of every item from its production to sales invoice. Batch and serial numbers are meant to keep transparency in your inventory system so that there is no chance of even a minor theft or misplacement of products.
5.Size and Color Feature:
Another important feature of Online Inventory Management Software is the initiation of the size and color feature which allows you to define all the possible sizes or possible colors in any item and fix their prices accordingly. This feature has facilitated many businesses and improved the business performance graph in the Middle East region.
The invasion of the dimensional measurement feature has taken SMACC to a savagely awesome level of popularity. You can measure the two-dimensional and three-dimensional products and maintain their inventory effectively. The cloud-based software of SMACC allows its users to enjoy the complete freedom of utilizing its services so that business growth is evident and you excel at your business performance.
No matter which business you belong to, SMACC offers the best solution for your inventory management and is still striving high to expand its influence by introducing more features and more languages of operation. Hence, dreaming of owning a successful business is no more a fantasy and SMACC can bring reality to your unfulfilled dreams for sure.