In this article, we discuss some basic inventory management techniques, explain what to look for in good inventory management software, look at some best practices for inventory management, and discuss some of the most common problems with Excel for small businesses.
Excel has many valuable functions, but like everything that is free or cheap, Excel is not perfect for inventory management. By integrating tools, functions and formulas and making tables more dynamic and interactive, it is good enough to handle the basic inventory management for a small business.
In this post I will give you some tips on building and using an Excel spreadsheet for basic inventory management, as well as some of my favorite tools for doing so.
Dropshipping is an ideal warehouse management technique when handling and storing your own inventory is too expensive for your current needs. If 3PL does not provide the right software, you should also be able to integrate a forecasting tool into your warehouse management solution to control order processing.
Take the next step by learning why accurate inventory control is critical to your business and learn more about improving your inventory management software. If you want to learn more about how to apply these critical inventory management techniques to your businesses, download "Everything you need to know about inventory management" for free.
When Excel does not perform complex functions, growing and scaling companies like yours need to use automated inventory management software that is as accurate and as easy to use as Excel. As Tomasz Tunguz points out, there are a number of reasons why Excel does not work as well as it should.
Having a cash register system that cannot communicate with your ERP software is not the end of the world, but it can cost you extra time to transfer data from one system to another, making it easier for you to end up with inaccurate inventory figures.
If you use the POS inventory management software, check whether it offers an inventory counting function that you can use. It is not necessary to look at the barcode of the merchandise management software of Excel as in other POS systems.
This means that the inventory management in Excel does not update inventory levels and does not synchronize with the distribution channel. If Excel inventory tracking does not support proper transfer of orders, it cannot take into account line differences that occur and brands end up having problems transferring inventory through Excel.
Excel can scan the barcode and track sales in the same way as other checkout systems, without having to capture or package sales.
If Excel inventory management is limited to a number of users per workbook, your team may struggle to obtain all the information needed to make purchase decisions and access financial information.
Excel does not work well for medium to large inventories with hundreds of columns, which is a lot of data to keep in mind, especially for small to medium-sized businesses.
If inventory management is not handled properly, it can lead to your business losing money on potential sales that cannot be filled, or wasting money by accumulating too much inventory.
You are not a multinational company, but this is an important resource that you must not neglect on your way to cost - effective warehouse management. Good ERP management can help you save your business a lot of money, but it's not for everyone.
There are alternative options and applications for inventory management, but these are the ones most of us already know. When creating Excel spreadsheets for the resources to be used, you should consider resource management software.
Some offer advanced inventory management features, but many of the paid products are not even included. Some have functions such as inventory tracking, inventory reporting and inventory monitoring, as well as a number of other functions.
This data is always available and can be easily exported back into your Excel ERP system and exported to any of the other Excel products.
Using Excel to manage your growing business will cost you more than investing in an inventory management solution. With Excel you can save money initially, but time is needed and the exact setup of the original template is crucial. A special warehouse management system is necessary to save you time and money in the long term.
Using Excel to manage your growing business will cost you more than investing in an inventory management solution. If you feel like using Excel for inventory management, you can contact us for more information on the best solution for you.
But as growth continues, you will end up paying for merchandise management software like Excel (literally). ABC Inventory is completely free and a great way to dip your toe into inventory management software.
As inventory management requirements become more complex, entrepreneurs will learn that Excel is not a sustainable solution in the long term. Whether it is a system or application specifically designed for inventory management or its handling, Excel can be a reliable and affordable option to facilitate the process.
