Negosentro.com | Inventory Tracking: What is it? And Everything You Have to Know |
What is inventory tracking?
Inventory tracking is the process of tracking inventory. These are tracked using SKUs. It tracks the locations of SKUs and the amount available at each one. The ability to monitor inventory levels in real-time is one of the most important features that you should look for in a provider. This is particularly important for ecommerce entrepreneurs as it is an essential part of the supply chain.
There are many ways that companies can use inventory. Wholesalers and retailers both buy and sell products. These businesses have inventory, which is the product they buy and sell. Manufacturers use different inventory. It includes raw materials and items that are used to make products.
You can see that keeping track of all moving inventory is crucial to the company’s success. It is important to know where everything is at all times, as many companies invest a lot in inventory. This leads us to the obvious question: How do we effectively track inventory?
How to Track Inventory
There are three ways to track inventory: manually, with software, or both.
You can track inventory regardless of what tool you use to see how it is moving.
When you are a startup, you can track inventory manually. Large corporations use software, and software can help you streamline your fulfilment process.
Our order management program at Thill helps you keep track of all your moving inventory.
A few decades ago, inventory tracking was manual. Imagine having to manually track thousands or tens of thousands of products every day. As you can see, human error was a problem, and accuracy was a problem. Companies rushed to automate inventory tracking when OMS technology was available.
Inventory is a valuable asset that companies own. This is why you need to know the location of your inventory.
Also, you want to know where your inventory is at the moment.
- It is broken
- Is it back?
- It is currently on hold
- Is it rejected?
- Is it accepted?
You can prevent theft and loss by keeping an eye on your inventory.
What is an inventory tracking system?
Software and programs for inventory management allow you to create an inventory tracking system. This allows you to monitor real-time inventory levels across your locations. This will allow you to track how many products are available to ship to customers who order products. This will help you with shipping units to different locations and backorders for items not in stock.
The inventory tracking software/system is among the best inventory tracking tools you can use.
Methods for Inventory Tracking
There are a variety of ways to track your inventory.
Barcodes are one of the most common and popular tracking methods. Barcodes, also known as the universal product code (UPC), are often used by retailers and grocery stores. Retailers and grocery stores can scan these barcodes to locate products, determine stock levels, and check for different sizes.
Barcodes can be used to track inventory and get product descriptions, prices, and units of measurement.
Radiofrequency identification (RFID) is another method of tracking inventory. There are two types of RFID technology: active RFID and passive RFID. Passive RFID is best used in situations where security concerns exist. It requires real-time tracking information. Passive RFID is most effective when used in conjunction with handheld scanners and where security concerns are not a concern.