Continuous Stock Management System: Handbook for Apparel Companies
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Perpetual Inventory Systems, a modern inventory management solution, are not exclusive to large establishments and production outlets. Small businesses and apparel brands can also benefit from this real-time tracking system, revolutionising their inventory management processes.
This system continuously records the cost of goods sold (COGS) and raw materials purchased in real-time for every transaction. Unlike periodic inventory systems, where COGS calculations are made at the end of an accounting period, Perpetual Inventory Systems perpetually count inventory as it moves in and out of shelves and warehouses by capturing sales data from point-of-sales systems.
This real-time tracking makes it easier to identify and prevent theft or unauthorised stock movement. One of the major upsides of managing inventory with a Perpetual System is that it can greatly minimise the occurrence of phantom inventory, lessens the need for physical inventory counting, and offers a high degree of accuracy.
Key features to look for in a Perpetual Inventory System for apparel brands include real-time inventory tracking, barcode and RFID integration, order management automation, inventory alerts and notifications, detailed reporting and analytics, multi-location and size/color variant tracking, integration with Point of Sale (POS) systems, and security and loss prevention features.
These features collectively support the complex inventory needs of apparel brands, helping maintain stock accuracy, improve customer experience, and optimise operational efficiency. By automating their inventory management, businesses can achieve greater operational efficiency and more accurate accounting records.
However, it's important to note that implementing and maintaining a Perpetual Inventory System can be expensive. When choosing a system, look for one with an Enterprise Resource Planning (ERP) module for comprehensive business management. Additionally, a good Perpetual Inventory System should integrate well with third-party solutions such as POS, scanners, and warehouse management software.
The Perpetual Inventory System contributes to accurate financial reporting by providing a clearer picture of a business's assets and liabilities. For small businesses with a limited inventory, a periodic inventory system might be more suitable, as it records inventory at stipulated time intervals.
In conclusion, Perpetual Inventory Systems offer numerous benefits for businesses, from enhancing customer satisfaction to minimising manual counting errors and discrepancies. By embracing this technology, businesses can optimise their inventory management processes and drive growth.
[1] Uphance: A Potential Inventory Management Solution [2] Real-time tracking in Perpetual Inventory Systems [3] Key features to look for in a Perpetual Inventory System [4] The Perpetual Inventory System perpetually counts inventory [5] Minimising manual counting errors and discrepancies [6] The Perpetual Inventory System can minimise the occurrence of phantom inventory [7] Upsides of managing inventory with a Perpetual System [8] In a Perpetual Inventory System, every time a product is bought, sold, or moved, the changes are immediately reflected in the inventory records [9] Security and loss prevention features in a Perpetual Inventory System [10] Automating inventory management with a Perpetual Inventory System [11] Perpetual Inventory Systems contribute to accurate financial reporting [12] Periodic inventory system for small businesses [13] Choosing a Perpetual Inventory System [14] Integration with third-party solutions [15] ERP module for comprehensive business management
Data-and-cloud-computing technologies are essential for Perpetual Inventory Systems, as these systems require real-time tracking and analysis of large amounts of inventory data. Technology enables the seamless integration of Perpetual Inventory Systems with Point of Sale (POS) systems, reducing manual errors and improving operational efficiency.
