What are the Benefits of a Perpetual Inventory System?
Perpetual inventory system
Inventory is a strong back for every business. People have to keep up enough inventory to meet their customers’ demand, but without exceeding the needed limits. Many businesses are overpaying on storage costs. This is where a perpetual inventory system gets the importance. This is a reliable and effective way to track your inventory in real time. It tracks and records inventory levels, and logs in the purchase and sale of stocks automatically and immediately.
Perpetual inventory
This is an accounting method that helps businesses to track inventory levels in real time. With this method, businesses can make precise and perfect inventory counts that are happening to a business every time. There is a difference between perpetual inventory system and perpetual Inventory. The latter is a software solution that performs the perpetual inventory tracking method.
Benefits of a perpetual inventory system
This is a kind of inventory control software offering a lot of benefits for eCommerce businesses. It helps track stock levels in real time while removing the need for additional labor costs and chances of manual errors. Let’s dig deeply to know the advantages of having perpetual inventory software for small businesses.
It helps record data in real-time
This system records all inventory updates and operations when they happen in the business environment. Companies can trust this wonderful software solution for their inventory counts. It will keep it accurate and perfect at all times.
It offers an elaborate paper trail
This software solution makes restaurant inventory management really effective and effortless. It tracks inventory interactions and movements across the eCommerce supply chain. With this data, companies can get more insights into the bottlenecks in their operations, and find more effective ways to optimize the supply chain.
It lowers inventory management costs
Real-time updates and records help businesses control and decrease stock-holding costs and inventory replenishments. Perpetual inventory system automates many operations in the supply chain, hence great savings on labor costs are ensured.
It calculates the year-end inventory balance
A perpetual inventory system tracks inventory levels continuously, this helps businesses to calculate year-end inventory balance instantly as the year ends. This way, businesses can easily calculate accurate inventory counts and report the same for accounting purposes.
It forecasts demand more precisely
This real-time inventory control software manages to forecast demand in a simple and straight way. It makes use of historical inventory and sales details and predicts future sales cycles. This way, businesses can ensure a sufficient amount of inventory at different times of the season, especially during holidays.
Optimizing the inventory management process
First of all, you have to choose an inventory software for small business. This will save you from the manual and time-consuming processes of managing inventory. However, you will want to the right technology and professionals to optimize the system and processes.
Tracko offers you the most advanced perpetual inventory system and multi-channel inventory management features to choose from. We will help you reduce the time you spend on inventory management tasks while providing you with great visibility into the order fulfillment process. Visit our website to know more about our packages and price rates.
FAQs
Q. What describes a perpetual inventory system?
Ans: It is an advanced software solution that tracks all purchases and sales to provide the company with a solid inventory count. Businesses can get an idea of the number of products they have in the warehouse to sell. This way, companies can maintain records and calculate valuable metrics easily and accurately.
Q. Where is the perpetual inventory system used?
Ans: It is suitable for big companies where a large volume of sales is being tracked. The software needs periodic physical counts but, in a few times, and at a low cost and scale.
Q. Who are the major users of perpetual inventory system?
Ans: Perpetual inventory system suits better for business that run larger and more complex inventory levels, and have high sales volume. For example, it is best for restaurant inventory management, and pharmacies and grocery stores can find it best for their operations.
Q. What are the major features of a perpetual inventory system?
Ans: It helps prevent stock-outs. Give more insights for businesses into customer preferences, and allows companies to centralize the whole inventory management system for different locations.
Q. What is perpetual inventory system in FIFO?
Ans: FIFO- First in, First out is an inventory calculation method that considers the first stocks added to the inventory should be sold first.
