Selecting Best Inventory Management Software

For various Business

Presented By: Hamza Hafeez Naeem ul Hassan Shahzaib Muneer Kamran Majeed Abrar Hashim

Inventory Management

•Effective inventory management is all about knowing what is on hand, where it is in use, and how much finished product results.

Why Inventory Management

• Manufacturer's Angle• Working Capital Issues• Overstock Hazards• Avoiding Stock outs

Why Inventory Management

• Inventory optimization• Supply chain visibility• Accurate financial reports

Inventory Control System• Continuous Inventory Systems In a continuous inventory system (also referred to as a perpetual system and a fixed-order-quantity system), a continual record of the inventory level for every item is maintained. • Periodic Inventory Systems

In a periodic inventory system (also referred to as a fixed-time-period system or a periodic review system), the inventory on hand is counted at specific time intervals; for example, every week or at the end of each month.

Inventory Control System• The ABC Classification SystemThe ABC system classifies inventory according to its dollar value to the firm. Typically, thousands of independent demand items are held in inventory by a company, especially in manufacturing, but a small percentage is of such a high dollar value to warrant close inventory control.

Types of Inventory Management Systems

• Manual• Many small business owners, especially if the business has

very few products, keep track of inventory manually. The easiest way to perform manual inventory management is to use a spreadsheet.

Types of Inventory Management Systems

• Barcode• Inventory management systems that use barcode

technology increase the accuracy and efficiency of managing inventories. All major retailers use barcode technology as part of an overall inventory management program.

Types of Inventory Management Systems

• Radio Frequency IdentificationWhile barcode technology has done a lot to increase

the accuracy and efficiency of managing inventory, radio frequency identification (RFID) has raised the bar on inventory management. Companies that use RFID typically move thousands of pieces of inventory through their doors. RFID uses two types of technology to manage inventory movements--active and passive technology.

Selection Criteria for Inventory Management Software

• Ease of use Training staff to use new technology can be an expensive, time-consuming process. Many vendors offer live demonstrations or software trials, so you can test drive the inventory software before you buy it. This is a great way to evaluate how easy (or hard!) a product will be for you and your employees to learn, without having to spend a dime.

Selection Criteria for Inventory Management Software

• Balance of features and simplicity Like buying a new car, it’s easy to get caught up in bells and whistles that aren’t mission critical. Unfortunately, this can add to the complexity of a product. • Integration with existing technology There are two considerations here: hardware and software. Avoid unexpected expenses by carefully reviewing the system requirements for the inventory software you are considering. Be sure that your existing computer and operating system can support the solution in question.

Selection Criteria for Inventory Management Software

• Timeliness of data • Inventory solutions can be used as software only or with a mobile

computer. Using a mobile computer gives you the flexibility to update inventory data from your warehouse, instead of doing every transaction from your computer.

• CostTrying to determine what an inventory tracking solution actually costs can be difficult. Elements that can bump up your basic solution cost are per-seat software licenses, hardware add-ons (like mobile computers or barcode scanners), technical support contracts, training, and implementation.

Types of information• Fixed information

• Product code• Description• Batch number• Size• Weight• Storage/handling type (e.g. carton)• Minimum pick quantity• Picking priority (e.g. FIFO)• Preferred store area or zone• Secondary store area or zone

Types of information• Variable information This describes those aspects which will be highly dynamic and which may change frequently during a working day. These are associated with the warehouse process and include:• Unique identity of each unit load in stock (e.g. pallet number)• Location of each unit load• Quantity of SKUs in each location• Movement of each picked item• Load status (e.g. available, QC hold)

Types of information• Derived information • Movement rate per stock keeping unit (SKU) i.e. analysis

of fast, medium and slow overs;• • Stock discrepancies (compared with master record in

inventory control system)• • Space utilization in the store• • Operator productivity

Inventory Management Software for Integration of Information

• Job verification• Location control • Automatic replenishment • Performance monitoring• Reporting• Interlink with other management information systems

Inventory Management Software in Modern Businesses

• Ordering and Receiving• Create purchase orders and email directly to vendors• Maintain a database of customers and suppliers• Set low-level warnings so you know when to reorder• Update item quantities when orders are received

• Inventory Reporting• Monitor and report stock levels, costs and averages• View inventory levels by location, category or overall• Product history shows when items were received or sold

Inventory Management Software in Modern Businesses

• Item Control• Scan in barcodes to add new items• Add notes, URLs and photos to item descriptions• Group items into categories for organized stock control• Set sales units for items sold by weight or in bundles• Integrates with other business programs to maintain inventory data across all aspects of

your business

• Manage Users and Locations• Transfer stock between locations• Web access allows users in different locations to log in• Assign appropriate access levels to different users• Manage multiple businesses simultaneously

Thank you