{"id":25265,"date":"2022-11-29T10:37:35","date_gmt":"2022-11-29T02:37:35","guid":{"rendered":"https:\/\/www.nextsmartship.com\/?p=25265"},"modified":"2024-12-30T14:30:34","modified_gmt":"2024-12-30T06:30:34","slug":"inventory-tracking","status":"publish","type":"post","link":"https:\/\/www.nextsmartship.com\/blog\/inventory-tracking\/","title":{"rendered":"Inventory Tracking 101: Best Methods In 2025"},"content":{"rendered":"<p>Whether you run a small business or a large enterprise in multiple locations, inventory tracking is more than just knowing what you have in stock, what you need to reorder, and when you should replenish.<\/p>\n<p>This article explains the basics of inventory tracking, the different ways to track inventory, and the best way to track inventory.<\/p>\n<h2 id=\"basic\">Basic inventory tracking guidelines<\/h2>\n<p>Regardless of the nature of your business, you need a tool or software that can help you achieve at least the following:<br \/>\n\u25cf Real-time inventory tracking<br \/>\n\u25cf Alerts on reordering and low inventory levels<br \/>\n\u25cf Purchasing management and supplier management<br \/>\n\u25cf Inventory reports<br \/>\n\u25cf Unlimited SKUs<br \/>\n\u25cf Inventory support<br \/>\nLet&#8217;s take a look at each function individually<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-25266\" src=\"https:\/\/www.nextsmartship.com\/wp-content\/uploads\/2024\/12\/inventory-tracking.jpg\" alt=\"inventory tracking\" width=\"800\" height=\"445\" \/><\/p>\n<h3>1.\u00a0\u00a0 Real-time inventory tracking<\/h3>\n<p>Do you know what you have and where it is? Have you ordered goods and do not know how long it will take to receive them, so you can not afford to place orders? Real-time inventory tracking ensures that you do not miss any sales:<\/p>\n<ul>\n<li>Customer orders are reflected in your inventory so you do not sell what you do not have<\/li>\n<li>You can track every stage of the transportation of your goods<\/li>\n<li>Goods are displayed as soon as they are scanned in the warehouse<\/li>\n<li>All transfers can be tracked in real-time<\/li>\n<li>You can establish the estimated time for shipment<\/li>\n<\/ul>\n<h3>2.\u00a0\u00a0 Reorder and Low Stock Alerts<\/h3>\n<p>Your inventory tracking system should alert you when running low on stock. In addition, it should also alert you what you need to reorder based on the quantity in store, orders placed and even the year&#8217;s season.<\/p>\n<p>For instance, certain products have a high demand during specific seasons. Can your system set an alert that you need more items in stock for the upcoming season?<\/p>\n<h3>3.\u00a0\u00a0 Purchase management and Supplier management<\/h3>\n<p>All your supplier details and transaction history should be accessible from the system. You don\u2019t have to keep referring to supplier details every time you make a similar order. Your system should store the supplier details for future reference.<\/p>\n<p>Your tracking system should be able to:<\/p>\n<ul>\n<li>Automatically generate and fill your purchase orders.<\/li>\n<li>Store supplier details in a central location within the system<\/li>\n<li>Calculate total cost implications for any discounts provided by the supplier<\/li>\n<li>Track transaction history for every supplier.<\/li>\n<li>Account for any partially received goods and what is pending receipt<\/li>\n<\/ul>\n<h3>4.\u00a0\u00a0 Inventory Reporting<\/h3>\n<p>How about you seeing your performance at the end of each month? Your inventory tracking system will lay a basis for determining what you should have in store and the quantity depending on the report analysis.<\/p>\n<p>The projection is based on inventory usage, projected usage, physical space management, inventory depletion and other factors. If a particular item takes too long to leave the warehouse, then maybe it\u2019s time you sell it at a clearing price to create space.<\/p>\n<h3>5.\u00a0\u00a0 Unlimited SKUs<\/h3>\n<p>Is it even playing its purpose if your inventory tracking system only allows a specific number of items to be added? You need an inventory system to make it easier to track your goods&#8217; state, place and quantity.<\/p>\n<p>If you will need to track some items manually because of your system\u2019s limitations, it\u2019s not worth it.<\/p>\n<h3>6.\u00a0\u00a0 Stocktake Support<\/h3>\n<p>You want to be able to take stocks by warehouse, location or product category for controlled and effective inventory management.<\/p>\n<p>With the base requirements for an inventory tracking system, can you identify the tool you need?<\/p>\n<p>Let\u2019s see the different methods of tracking inventory<\/p>\n<p>&nbsp;<\/p>\n<h2 id=\"methods\">Methods of Inventory Tracking<\/h2>\n<p>Although the demand for electronic methods of tracking inventory is increasing, you may opt for manual inventory tracking as you grow your business to cut on expenses upfront.<\/p>\n<h2 id=\"manual\">Manual Inventory Tracking<\/h2>\n<p>Traditional methods of tracking inventory apply to small businesses. But if you are looking forward to scaling your business, you obviously will need automation. Here are some of the ways of manual inventory tracking:<\/p>\n<h3>The use of spreadsheets<\/h3>\n<p>Spreadsheets like Microsoft Excel can help keep track of inventory. Although the information is electronically stored, you must manually enter data and update it whenever an order is placed.<\/p>\n<h3>Use of cards<\/h3>\n<p>When using cards for inventory tracking, items of the same type are placed in the same location with the card containing the details of the category. A computer is also required to keep track of the products and update the card.<\/p>\n<h3>Advantages of manual inventory tracking<\/h3>\n<p>Using manual methods to track inventory has the following benefits:<\/p>\n<ul>\n<li><strong>Low upfront cost<\/strong>&#8211; You can still track your inventory without investing in tracking software if you are just starting your business.<\/li>\n<li><strong>Simplicity-<\/strong> Spreadsheets and card tracking are simple to use; hence do not require you to train your staff.<\/li>\n<\/ul>\n<h3>Cons<\/h3>\n<p><strong>Tedious-<\/strong> To ensure that you are up to date with your inventory, you must constantly update the data.<\/p>\n<p><strong>Risky-<\/strong> No alerts or reminders when you are running out of stock, and you may miss out on sales or lose customers\u2019 trust when you offer what you do not have.<\/p>\n<p><strong>Prone to human error-<\/strong> The only way to verify entries for inventory is by checking against your inventory with a checklist. Any mistake made in the tracking costs your business.<\/p>\n<p><strong>Limited-<\/strong>You can only use the manual tracking for a limited inventory. Scaling your business requires automated tracking.<\/p>\n<p>The disadvantages of manual inventory tracking are numerous. Considering that the fast-paced technology is meant to resolve the issues highlighted, it is prudent to factor in the cost of inventory software when starting your business.<\/p>\n<h2 id=\"tools\">Computerized Inventory Tracking Tools<\/h2>\n<p>Depending on your business&#8217;s nature, type and size, you have a wide range of electronic inventory tracking tools. You must identify your needs to choose the right tool for your business. Here are some of the commonly used inventory tracking methods:<\/p>\n<h3>Inventory Management Systems<\/h3>\n<p>An inventory management software tracks all your processes throughout the entire supply chain. From order processing to end sales, you can tell what you have and where it is. A good inventory management system supports the following features:<\/p>\n<ul>\n<li><strong>Projection\/Forecasting<\/strong>&#8211; You should be able to project the inventory in every season depending on the reports generated by the system. Your system should capture product details and characteristics, orders and suppliers, and demand.<\/li>\n<li><strong>Barcoding and scanning-<\/strong> You should be able to enter product details of your inventory, such as category, description and cost, using a <a href=\"https:\/\/www.nextsmartship.com\/blog\/barcodes\">barcode<\/a> reader.<\/li>\n<li><strong>Improved inventory analysis<\/strong>&#8211; Are there actionable dashboards? Are there recommendations for what you should consider in stock, depending on demand? Can you track metrics such as gross margin return on investment (GMROI)?<\/li>\n<li><strong>Customizable<\/strong>&#8211; If you have different companies, you don\u2019t need a system for each. You should be able to configure the interfaces, products category, user groups, accounting structure and other features to suit your business needs.<\/li>\n<li><strong>Integration-<\/strong> Primarily, your inventory system should sync with the warehouse system. In addition, does your system support point of sale and website integrations? What other add-ons does your system support?<\/li>\n<li><strong>Software as a service (SaaS)<\/strong>&#8211; Although you may want to have your system on-premise, cloud-based solutions offer more collaboration and storage space flexibility, hence an important feature to consider.<\/li>\n<\/ul>\n<h3>Open Source Software<\/h3>\n<p>Depending on the size of your inventory tracking team, you can purchase open-source licenses for tracking software. You can modify the software to suit your needs, as you can freely access and modify the code. Open-source software is a budget-friendly option.<\/p>\n<h3>Software as a service (SaaS)<\/h3>\n<p>Due to flexibility, greater automation and scalability, SaaS solutions are rising in demand. It&#8217;s easier to implement, and the vast storage space allows for expanding your inventory, whether in terms of users or quantity of your merchandise.<\/p>\n<p>Better still, you don\u2019t need software on-premise with a SaaS solution, which saves installation costs. Most SaaS solution providers provide support and training, so you don\u2019t have to worry about usage.<\/p>\n<h2 id=\"easier\">Easiest Way to Track Inventory<\/h2>\n<p>Are you an ecommerce company looking for an efficient system for all your inventory tracking needs? <a href=\"https:\/\/www.nextsmartship.com\/inventory-management\">NextSmartShip Inventory Management<\/a> helps you control your entire supply chain tracking needs including order and shipping in a single platform.<\/p>\n<h2 id=\"why\">Why NextSmartShip Inventory Management System?<\/h2>\n<p>Here are some of the prominent features of NextSmartShip\u2019s SaaS solution that makes it your ideal solution:<\/p>\n<p><strong>Integration<\/strong>-NextSmartShip\u2019s solution integrates with all your major shopping carts.<\/p>\n<p><strong>Efficiency<\/strong>-NextSmartShip helps you keep your stock at the right levels, in the right location at the correct time\uff0c with an accuracy rate of 99.99%.<\/p>\n<p><strong>Safety<\/strong>&#8211; All your inventory is managed centrally with fire protection and video monitoring. Insurance for our warehouses is an added level of security for your inventory too.<\/p>\n<p><strong>Transparency<\/strong>&#8211; You enjoy a 30-days free warehousing with good profit margins and budget control with a trusted billing system.<\/p>\n<p><strong>User-friendly-<\/strong> With the inventory management system, you can check all the inventory and SKUs in the dashboard, the data will be updated and sync to your online store in real time.<\/p>\n<p><a class=\"cta-btn\" style=\"margin: 0 auto 30px;\" href=\"https:\/\/www.nextsmartship.com\/get-custom-solutions\/\">Get Custom Solutions<\/a><\/p>\n<h2 id=\"view\">General Overview<\/h2>\n<p>Generally, inventory tracking is critical to inform your business decisions. Keeping track of what you have and where it is, predicting trends through reports and staying updated with seasonal adjustment saves on cost and time.<\/p>\n<p>The cost of losing a customer&#8217;s trust is high, and you don\u2019t want to incur it. Accepting a customer\u2019s order of an item that is out of stock or accepting an order of fifty items when you have 45 may lead to losing that customer.<\/p>\n<p>Automated inventory tracking takes care of both you and your customer. You won\u2019t miss out on sales in seasons when the demand is high because you are out of stock or your warehouse is full of items that are not needed during such a time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether you run a small business or a large enterprise in multiple locations, inventory tracking is more than just knowing what you have in stock, what you need to reorder, and when you should replenish. This article explains the basics of inventory tracking, the different ways to track inventory, and the best way to track [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":43970,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-25265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fulfillment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Inventory Tracking 101: Best Methods In 2023<\/title>\n<meta name=\"description\" content=\"An efficient inventory tracking system ensure you don\u2019t miss out on sales. 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