Inventory control system deals with all areas of taking care of the inventories of a company, including purchase, shipment, receipt, inventory tracking, storage, turnover and reordering of goods. In some firms, some of these aspects may not be contained within different subsystems, but can be carried out in sequence to have a fluid inventory control system.
The introduction of technology into inventory control systems makes it possible to join the different subsystems that are part of inventory management system into one system that is cohesive. In the business environment today, even startup companies have come to embrace computerized inventory systems. Surely, there are lots of small businesses that continue to depend on manual method of tracking inventory. Such companies see using electronic inventory systems as a waste of resources.
But for companies that handle large volume turnover of products, electronic inventory systems are an important part of the strategies of the business, targeted at maintaining competitiveness and increasing production rate. Additionally, recent advancement of computer technological programs capable of handling various record keeping requirements – such as inventory management – in a single system have contributed to the rise in popularity of electronic control options.
Types of Inventory Control Systems, for Warehouses in Malaysia
Inventory control systems make it possible for organizations to keep track of inventory and have data required to manage and control it. No matter your choice of inventory system, ensure that it encompasses a system that can identify inventory items and their data – including asset tags and barcode labels, tools for scanning barcodes, a database of all inventories, produce reports, and predict demands. Today, there are two types of inventory control systems: perpetual and periodic.
1. Perpetual inventory control system
This system updates inventory records continually, and accounts for any addition or subtraction when you receive an inventory, sell from stock, or move from one place to another. Some businesses prefer making use of this inventory system because they give updated information and handle physical inventory counts better. Additionally, they regularly produce results that are accurate when properly managed. Perpetual inventory system works best when in combination with a database of inventory quantities that is always updated by workers using barcode scanners.
The downside of using this system is that they cannot be manually maintained; they required specialised equipment, this adds to the cost of implementation, particularly for companies that have various locations and warehouses. Another disadvantage is that when an inventory is recorded, it may not be reflected on the real inventory because they don’t use regular physical counts, this leads to stolen goods and errors.
2. Periodic inventory control system in Malaysia
This inventory control system does not track inventory on a daily basis; but they make it possible for companies to know when the inventory levels begins and ends during a particular time. Periodic systems make use of physical inventory counts to track inventory.
The challenge with using this inventory control system is that after the completion of the inventory counts, business activities get suspended; due to this, employees may rush through their counts. Fraud and errors may also occur since there is no regular control over inventory. Also, it gets difficult trying to know where problems in inventory counts happen because lots of time goes by between counts.
Generally, inventory systems that make use of barcodes are more efficient and accurate that the manual ones. Barcode systems, when used as part of the general inventory system automatically update the levels of inventory when employees use a scanner to scan them. There are many benefits of using barcode systems, including:
Inventory Control System in Malaysia
For more than ten years, Grand-Flo Spritvest has successfully established data management and collaboration solutions for companies ranging from financial institutions to consumer goods businesses, multinational organisations and educational institutions all over Malaysia. We empowered companies to efficiently manage their data regardless of their capacity frequencies.
Grand-Flo Spritvest offers innovative solutions that can revitalise how organisations manage their inventories. Due to this success, we currently serve 40 percent of the market in Malaysia. We specialised in automatic identification and data capture solutions, providing the right software and hardware to make an ideal solution for business needs.