INTRODUCTION TO INVENTORY CONTROL SYSTEM

An inventory control system is a process for managing and locating objects or materials. In common usage, the term may also refer to just the software component. Modern inventory control systems often rely upon barcodes and RFID tags to provide automatic identification of inventory objects. In an academic study performed at Wal-Mart, RFID reduced Out of Stocks by 30 percent for products selling between 0.1 and 15 units a day. Inventory objects could include any kind of physical asset: merchandise, consumables, fixed assets, circulating tools, library books, or capital equipment. To record an inventory transaction, the system uses a barcode scanner or RFID reader to automatically identify the inventory object, and then collects additional information from the operators via fixed terminals (workstations), or mobile computers.

Common Components of an Inventory Control System?

Barcode Scanner
We can help you find a scanner for use on any barcode symbology in any environment. Barcode carries all types of barcode scanners: Laser, area imager, handheld, wand, counter-top, in-counter, industrial, USB, PS2 keyboard wedge, serial (RS232), cordless, wireless RF, Wi Fi 802.11b, raster, CCD, and more!

Wireless Barcode Scanner

Our handheld computers and portable data terminals function as multi-use tools for your advanced data capture and mobility needs. Choices include mobile computers with batch or wireless (802.11 b/g) data capture, Windows Mobile, Linux-based, or Palm OS operating systems, 1D/2D barcode scanning capabilities and more.

Inventory Software
We carry inventory software for control and tracking of warehouse or point of sale inventory. Bundle our software with barcode scanning hardware for a complete inventory management system solution. Download a free inventory software demo program for your computer.

Barcode Printer
Direct thermal and thermal transfer barcode printers from Zebra, Data max, SATO, Intermec and more. Suitable for light or industrial printing needs.

Barcode Label
We carry a full line of direct thermal and thermal transfer barcode labels. We have 1000's of labels in-stock and available to ship today. Use our label selector or custom label quote request form to find labels that suit your needs

IMPORTANCE OF INVENTORY CONTROL SYSTEM

Inventory control is important to ensure quality control in businesses that handle transactions revolving around consumer goods. Without proper inventory control, a large retail store may run out of stock on an important item. A good inventory control system will alert the retailer when it is time to reorder. Inventory control is also an important means of automatically tracking large shipments. For example, if a business orders ten pairs of socks for retail resale, but only receives nine pairs, this will be obvious upon inspecting the contents of the package, and error is not likely. On the other hand, say a wholesaler orders 100,000 pairs of socks and 10,000 are missing. Manually counting each pair of socks is likely to result in error. An automated inventory control system helps to minimize the risk of error. In retail stores, an inventory control system also helps track theft of retail merchandise, providing valuable information about store profits and the need for theft-prevention systems.

Computers and Inventory

Automation can dramatically impact all phases of inventory management, including counting and monitoring of inventory items; recording and retrieval of item storage location; recording changes to inventory; and anticipating inventory needs, including inventory handling requirements. This is true even of stand-alone systems that are not integrated with other areas of the business, but many analysts indicate that productivity and hence profitability gains that are garnered through use of automated systems can be increased even more when a business integrates its inventory control systems with other systems such as accounting and sales to better control inventory levels.."

How Does an Inventory Control System Work?

Automated inventory control systems work by scanning a barcode either on the item. A barcode scanner is used to read the barcode, and the information encoded by the barcode is read by the machine. This information is then tracked by a central computer system. For example, a purchase order may contain a list of items to be pulled for packing and shipping. The inventory control system can serve a variety of functions in this case. It can help a worker locate the items on the order list in the warehouse, it can encode shipping information like tracking numbers and delivery addresses, and it can remove these purchased items from the inventory tally to keep an accurate count of in-stock items. All of this data works in tandem to provide businesses with real-time inventory tracking information. Inventory control systems make it simple to locate and analyze inventory information in real-time with a simple database search. Inventory control systems maintain information about activities within firms that ensure the delivery of products to customers. The subsystems that perform these functions include sales, manufacturing, warehousing, ordering, and receiving. In different firms the activities associated with each of these areas may not be strictly contained within separate subsystems, but these functions must be performed in sequence in order to have a well-run inventory control system. In today's business environment, even small and mid-sized businesses have come to rely on computerized inventory management systems. Certainly, there are plenty of small retail outlets, manufacturers, and other businesses that continue to rely on manual means of inventory tracking. Indeed, for some small businesses, like convenience stores, shoe stores, or nurseries, purchase of an electronic inventory tracking system might constitute a wasteful use of financial resources. But for other firms operating in industries that feature high volume turnover of raw materials and/or finished products, computerized tracking systems have emerged as a key component of business strategies aimed at increasing productivity and maintaining competitiveness. Moreover, the recent development of powerful computer programs capable of addressing a wide variety of record keeping needsincluding inventory managementin one integrated system have also contributed to the growing popularity of electronic inventory control options. Given such developments, it is little wonder that business experts commonly cite inventory management as a vital element that can spell the difference between success and failure in today's keenly competitive business world. Writing in Production and Inventory Management Journal, Godwin Udo described telecommunications technology as a critical organizational asset that can help a company realize important competitive gains in the area of inventory management. He noted that companies that make good use of this technology are far better equipped to succeed than those who rely on outdated or unwieldy methods of inventory control.

APPLICATION
An inventory control system may be used to automate a sales order fulfillment process. Such a system contains a list of order to be filled, and then prompts workers to pick the necessary items, and provides them with packaging and shipping information. An inventory system also manages in and outwards material of hardware. Real-time inventory control systems may use wireless, mobile terminals to record inventory transactions at the moment they occur. A wireless LAN transmits the transaction information to a central AVALON. Physical inventory counting and cycle counting are features of many inventory control systems which can enhance the organization control systems WORK ONLY with computers.

What Industries Use Inventory Control Systems?

Inventory control systems are employed in a wide variety of applications, but they all revolve around tracking delivery of goods to customers. Inventory control is crucial in retail stores, especially those with a large number or variety of merchandise items for sale. Inventory control is also used in warehouses to track orders and shipments, and for automated order processing. Other important applications of inventory control systems are in manufacturing, shipping, and receiving.

THE FUTURE OF INVENTORY CONTROL SYSTEMS.

In the latter part of the 1990s, many businesses invested heavily in integrated order and inventory systems designed to keep inventories at a minimum and replenish stock quickly. But business owners have a variety of system integration options from which to choose, based on their needs and financial liquidity. At the same time that these integrated systems have increased in popularity, business observers have suggested that "stand-alone" systems are falling into disfavor. A 1996 study by the International Mass Retail Association (IMRA), for example, concluded that stand alone Warehouse Management System (WMS) packages acquired to perform individual functions will soon become obsolete because they do not integrate well with other systems. Another development of which small business vendors should be aware is a recent trend wherein powerful retailers ask their suppliers to implement vendor-managed inventory systems. These arrangements place the responsibility for inventory management squarely on the shoulders of the vendors. Under such an agreement, the vendors obtain warehouse or point of sale information from the retailer and use that information to make inventory restocking decisions.

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