Depending on the size of a business, it can get difficult to track the flow of inventory. It is a relatively simple process in the case of a small business with stock in the back room. The clerk or manager just writes incoming and outgoing on a sheet of paper and it might be managed with software as simple as a spreadsheet.

Bigger businesses cannot do this as they end up spending many workhours keeping track of inventory, especially if they do the job manually. Established businesses have likely already found a partially automated solution but might want to upgrade. A growing business soon loses track of inventory and needs to find a cost-efficient solution fast. The good news is that there is plenty of proven inventory management software that is affordable even to new businesses.

The need for automation is easy to appreciate. A multitasking worker often cannot do more than create ledger receipts for changes in the inventory. That information then has to be inserted into a network by the end of the shift, and the same person moving parcels might not be the person who changes the computer log. This problem is quickly complicated with multiple inventory workers, and human error multiplies the faster that packages are moved.

If information is controlled manually, then it costs a business in several ways. The first is that unloaders and stockers are expected to move quickly and are effective multitaskers. Since many people have one-track minds, they are likely to make errors if they have to use a clipboard and a trolley at the same time. A manager would have a hard time keeping tally of everyone. A much better solution is if all merchandise is controlled electronically.

Big stores have bar codes for all products and keep inventory by scanning items and parcels as they arrive and are leaving the store. Changes to the inventory are kept track in real-time. The system is so efficient that big companies often only have to recheck their in-store inventory one a year or so. A similar scan system is used by postal companies, and it is known to be extremely reliable in skilled hands.

The software in question must be able to handle databases as well as real-time input from many different sources. These inputs might be from stores or depots all over the country, and this means that the same software has to be able to handle a large network. Not every database is up to the challenge of collecting input from diverse sources and then delivering information about inventory management software shortfalls to management or else making orders automatically. You are going to want the best software for that.