Topics: Inventory, Business, Management Pages: 3 (815 words) Published: February 22, 2013
Inventory is one of the most important factors in running a successful and profitable business. It helps businessman to determine the profits earned by the establishment at the same time it helps them to track down the number of stocks and supplies needed to be replaced or purchased. Inventory sometimes take days or weeks to be done and it requires many people to do the inventory. Check and balance of the materials and goods could be quite difficult if there are shortages and the stockroom clerk cannot determine the issuance made In the manual inventory system, inventory clerks check and balance their logbooks, index cards and compare them with the actual stocks left in the warehouse or stall. Sometimes it takes them time to balance the stock with the one in the logbook or index cards. Efficiently tracking inventory is an imperative component to a small business & successful operation. By having up-to-date data regarding all needed supplies, raw materials and goods for sale, an organization will increase its bottom line. In addition, the money saved by not reordering unnecessary goods can be used in other commodities needed by the establishments; an enterprise will be better positioned to services customers quickly. Inventory navigates any unexpected changes in business, such as a supplier abruptly going out of business, phasing out of some materials in the market, reinvention of packages, reformulation of the product ingredients, and product upgrades are only a few of the problems that most businesses encounter especially there are many stocks still available in the shelf or counter. If one of these things happened, waste of time, effort, and finances could be a clear effect of this situation and worse bankruptcy. Although many companies maintain this information manually, there are benefits to using a computerized inventory system such as time saving, accuracy, and consistency. The amount of time...
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