What is inventory management? It’s a seemingly simple question, but it brings up some interesting answers. We’ll start with the basic answer: Inventory management is the method businesses use to organize parts and products required to keep functioning. Now let’s delve a level deeper.
Inventory Management by Hand vs. Software
The two main ways to keep track of inventory are by hand or software. Manufacturing inventory software is better than a paper- or Excel-based inventory management system for many reasons.
With a paper or spreadsheet inventory management system, manufacturers have to input data by hand. This increases their chances of making a typo or other error, compared to the other method. They also run the risk of losing pages with essential information.
With manufacturing inventory software, all of this can be done automatically with barcode scanners. There’s no need to type or write data because it’s automatically generated by the scan of a product barcode.
Manufacturing inventory software is also superior to paper-based systems because it allows real-time inventory tracking. Manufacturers can quickly find where specific parts and products are located, and they can also track the progress of orders from suppliers and shipments to customers.
The Follow-up Question
Perhaps the follow-up question to “What is inventory management?” should be “What is the best way to manage inventory?” For manufacturers, the answer is clearly manufacturing inventory software. It does the job much better than by hand, it reduces costs in the long term and it helps manufacturers be efficient and productive.
The #1-requested QuickBooks manufacturing software is Fishbowl. It offers a variety of features manufacturers need. Try a free trial of Fishbowl today!