Unique Content Article on Advice,Business and Finance

The Perpetual Inventory System:The Pros and Cons

by Darren Folkes

A company has to have inventory management in order to track its goods and services.If you do not know what is available, then you cannot use it to your advantage.There are two kinds of <a href="http://ezinearticles.com/?The-Perpetual-Inventory-System:-The-Good-and-Bad&id=7435889">inventory systems</a>.They are perpetual and periodic.They differ in the way that they are updated.This article is going to discuss the perpetual system.

The perpetual system is always getting an update.The system is always being updated for orders that have been delivered, ordered or received.This is because computers can operate in real time.Info is entered via bar coding.Everyone seems to like this system because the info is always updated.You are guaranteed that the information that that is received within the reports is the most up to date information available.

But, humans can still cause errors.The information is only as accurate if it is entered into the system.It cannot be seen, analyzed or corrected if it is never keyed into the system.This is why the information has to go in once an order is placed, shipped or received.

Of course with any type of system there are going to be both pros and cons.The main benefit is that it is in real time.For instance, sales personnel must know how much inventory is in stock before they can sell it to potential customer.This is especially true if the customer is expecting same day delivery.The salesman can get this information from his laptop or phone.He has the information that he needs at his fingertips.It is a smart way to check inventory before placing a same day order for a customer and finding out that the product is not in stock.

In the past, the salesperson would have to get someone from the office to help him with this info.Someone would have to go to the warehouse and do a stock check.This might take a long time to get information in this manner.This explains why the perpetual system is so well liked.It cuts down on time.

When it comes to the perpetual inventory system, there are few cons.The loudest complaint is that it is a huge upfront investment.The software for this type of system is not cheap.But, once you get past this, it is a great system.Also, if you have to enter the info, then this can be quite time consuming.The database has to be maintained.

It has both bad and good features, but overall it is a good <a href="http://hardcat.com.au/the-solutions/solutions">inventory management</a> system.



Click here for more info on <a href="http://hardcat.com.au/">Hardcat</a> Or visit their website at: <a href="http://hardcat.com/">www.hardcat.com</a>.

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New Unique Article!

Title: The Perpetual Inventory System:The Pros and Cons
Author: Darren Folkes
Email: adam@webutation.com.au
Keywords: Advice,Business and Finance,Business: Management
Word Count: 447
Category: Management
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