Managing inventory can make or break a business. Efficient inventory tracking ensures you meet customer demands without overstocking or running out of key products. It plays a crucial role in maintaining profitability and operational flow. As they say, “You can’t manage what you don’t measure“—a quote that’s especially true when it comes to inventory management.
In this blog, we’ll dive into the simplest methods for tracking inventory, explore common challenges, and discuss how a mobile inventory management solution can help you overcome them.
Overview:
5 Simplest Inventory Tracking Methods
An organization that doesn’t follow the right tracking methods to manage its inventory is like groping in the dark to search for the treasure. Though there are several methods to track your inventory, however, it all depends on your organization’s size, requirements and your current market demands. In this section, let’s dwell into some of the most common methods to track the inventory of an organization.
1. Manual Tracking
As the name suggests, manual tracking involves using spreadsheets, pen-and-paper lists, or similar methods. This is typically used by small businesses with limited SKUs. While simple, manual tracking can become inefficient as the business grows.
If you are a retailer or managing a company with minimal stock, this method makes sense.
For instance, you can keep a log of incoming shipments and record sales manually each day. However, this process becomes overwhelmed as the inventory expands.
2. Barcode Systems
This is an automated tracking system that involve scanning barcodes attached to items as they move through the supply chain. This method reduces human error and speeds up the process of counting stock. If your business is maintaining a large inventory with multiple product variants, this method is most ideal and efficient.
3. RFID (Radio Frequency Identification)
RFID systems use radio waves to track items in real time. Unlike barcode systems, RFID doesn’t require line-of-sight scanning, making it much faster. However, it’s more expensive to implement and is typically used by larger organizations.
For example, retail giants like Zara use RFID to track garments from the factory floor to the store shelf, providing real-time stock updates across all locations.
Explore: RFID Inventory Management | The Complete Guide in 2024
4. Periodic Inventory System
In this method, you only update your inventory records at specific intervals, like monthly or quarterly. While this system is simple, it can lead to discrepancies between actual and recorded stock, especially during high sales periods.
For example, if have a seasonal store like a holiday pop-up shop, you might use a periodic inventory system because of the shorter operational time frame and less frequent need for tracking stock.
5. Perpetual Inventory System
A perpetual inventory system updates inventory records in real-time. Every time an item is sold, returned, or moved; the system updates instantly. This method is highly efficient for a business that need up-to-date stock data at any given time.
For example, Amazon uses a perpetual inventory system to ensure they always know their stock levels, which allows them to provide accurate delivery times to customers.
Challenges in Inventory Tracking
No matter which method you choose, inventory tracking comes with its own set of challenges such as:
- Human Error – Manual data entry or incorrect scanning can lead to inaccurate stock counts.
- Time-Consuming – Conducting regular physical counts or updating spreadsheets can drain hours of productivity.
- Lack of Real-Time Data – In many systems, inventory data isn’t updated in real time, making it difficult to know exactly how much stock you have at any moment.
- Inconsistencies – Using a periodic inventory system can lead to discrepancies between actual stock levels and what’s recorded.
- Cost of Implementation – More advanced systems like RFID can be expensive to set up, which might deter smaller businesses from upgrading.
Mobile Inventory Solution Solves These Challenges
A mobile inventory management solution addresses many of these challenges, offering a seamless way to track your stock and improve operational efficiency. Some of the key takeaways of adopting a good mobile inventory management solution are as follows:
1. Reduces Human Error
A mobile inventory management solution enables barcode scanning directly from your phone or tablet. This reduces manual data entry and the associated errors, improving accuracy in inventory tracking.
2. Saves Time
By integrating mobile scanning, you can quickly scan products as they enter or leave the warehouse. This dramatically cuts down the time spent counting inventory or searching through spreadsheets to find information.
3. Provides Real-Time Data
A mobile inventory solution that integrates with your in-house ERP system like Oracle or SAP allows you to track stock in real time. Every time you receive, move, or sell a product, the app automatically updates inventory levels at the backend ERP system. On the other hand, your warehouse and inventory personnel have access to the latest ERP data on their mobiles, empowering them to take the right decisions.
4. Easy to Use
Most mobile inventory apps are user-friendly, allowing even non-technical staff to quickly learn how to use them. This helps reduce the training burden and makes implementation faster and easier.
5. Affordable and Scalable
Unlike traditional inventory management systems that might require a significant upfront investment, a mobile inventory solution is often more affordable. You can start small and scale up as your business grows, making it suitable for businesses of all sizes.
Explore Propel Apps’ Mobile Inventory Management Solution
While there are a couple of vendors that offer good mobile inventory management solutions for diverse industrial requirements, however, not all solutions offer the right features or tend to be pocket friendly. In this context, explore Propel Apps’ mobile inventory management solution that offers the right mix of features, customizable as per your specific industrial needs.
This solution streamlines complex supply chain processes for Oracle EBS, Oracle SCM Cloud, and SAP S/4 HANA while efficiently capturing and maintaining your barcode inventory data. This solution is user-friendly, affordable, and works even in offline mode (suitable for remote locations with poor internet access or when Oracle/SAP servers are down).
Interested to learn more about this solution? Schedule a free demo today to explore how this solution can transform your inventory and supply chain operations.
Final Thoughts
Tracking inventory doesn’t have to be complicated. Whether you’re a small business relying on manual methods or a large corporation using RFID, finding the right system is key to maintaining efficient operations. Mobile inventory management solutions offer a simple and cost-effective way to overcome the challenges of traditional tracking methods, giving you real-time visibility and reducing the potential for errors. As your business grows, having a reliable and scalable solution will ensure your inventory tracking is seamless and stress-free.
By integrating a mobile inventory management solution into your warehouse workflows, you can stay on top of your stock, reduce errors, and save time—ultimately allowing you to focus more on growing your business than managing your inventory.
