Busting Myths About Inventory Management Systems

By Paul Trujillo

Over 1100 small businesses participated in the 2017 State of Small Business Report. Of those, 43 percent either used manual processes to track inventory or didn’t manage inventory at all. If you are a company that has hesitated to add an inventory management system to your operations, the following thoughts might pop up, not only in your own mind, but in your business meetings, too:

“Our old way works just fine. Why should we change?”

“Change is hard and potentially time consuming.”

“It is too much money.”

It’s OK to consider these factors in your decision making. However, don’t make them a barrier to improving your overall business, either. So, I’d like to address each of the aforementioned “myths” you might believe about the implementation of an automated inventory management system.

“Our old way works just fine.” But does it, really? That had been the feeling at RaceSource, a custom manufacturer of vehicle components for the racing industry. But RaceSource Vice President Paul Huffaker found that as their business expanded, so did the growing pains— especially when it came to inventory management.

“Maintaining an accurate inventory count on Excel was time consuming and error ridden,” said Huffaker. “Often I would reorder or manufacture parts I already had simply because I didn’t know I had them, which was an unnecessary cost. And with many smaller items being combined into an assembly, I needed a system that could use the existing UPC codes to track the individual item as well as the assembly.”

How many nights have you stayed way too late at the office, sifting through files and piles of spreadsheet? And even if you eventually organize the data you need, you can’t be sure it’s completely accurate. Even the best typist makes a keying error every 300 strokes. And that can add up. You can never be certain about how many keying or handwriting errors are unaccounted for in your data. Plus, the reports you pull up are likely not up to date, either. Let alone that fact that you might be wasting money by ordering extras of things you don’t necessarily need – all because your inventory control is out of control.

“Change is hard and potentially time consuming.” While I can’t deny change is not always easy, that doesn’t have to be the case with inventory management. In fact, in some cases you can download a free trial of a program and try it out before introducing it out to your employees. This was a selling point to Huffaker as he considered doing away with spreadsheets.

“The free trial that lets you test drive the system and see how it works specifically for your company,” Huffaker added. “This provided me with the opportunity to learn the system before I made the purchase and see what I liked about it.”

Once your business is ready to take the first step, the standard installation and implementation can be performed while you’re still doing business. And this is accomplished with little or no downtime. Plus, on-site training Go to the full article.

Source:: Business 2 Community

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