Advantages And Disadvantages Of Manual Inventory Management

Inventory management is an integral part of businesses. There are manual and automated management systems each one having its own advantages and disadvantages. Problems with manual system need to be analyzed, and take steps to consider to see if an automated system is more feasible for the business. The business process assessment needs to be in the equation as well as software capabilities and hardware needs. INVENTORY MANAGEMENT Most businesses, regardless of their size, small or large, carry inventory. The inventory can be from raw material to finished products, but it needs to be counted and tracked manually or with an automated system. Regardless of the system used, it is important to maintain stock at the right levels as well as†¦show more content†¦There are also disadvantages with the manual inventory system. It can be labor intensive to run by having to constantly monitor the inventory every time a sale takes place to ensure that stocking levels are appropriate. Prone to human errors is another disadvantage of the manual inventory system. The manual inventory system relies on people s efficiency to record the sale in a timely manner and to count the items correctly to avoid increasing inventory levels and its carrying costs, or not having enough product on hand to fulfill an order. Some of the carrying cost to consider are warehousing storage, insurance, taxes, depreciat ion, and breakage among others.  © Fishbowl Inventory A business owner wanting to convert a manual inventory system to an automated system must have detailed processes that take place with the current system and then begin to change it to what he or she wants it to be. With the new system design, employees performing the current tasks regularly, need to be included in the new designing process. A thorough business process assessment must be done to be able to assess the business process efficiently. The report should list all aspects of the business, requirements and trade demands as well, to measure its processes effectively. Any processes happening behind the scenes need to be account and make changes necessary to the procedures to ensure the process is complete. The business owner must keep in mind that â€Å"the purpose of the inventoryShow MoreRelatedInventory Systems Paper1372 Words   |  6 PagesInventory Systems Summary Inventory control systems are used so that companies can track materials or products. Before technology was so readily available, employees of companies had a harder time tracking inventory. Today one can go into a large retailer and ask an employee to check if an item is in stock and all the employee would have to do is check a little hand held device. 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