What are Different Types of Inventory Management Systems and Their Pros & Cons?
Departmental overstocks and overfilled warehouses is a challenge that growing businesses face today. One of the most common causes of overstocking is the lack of centralized systems.
That’s why it’s important to use inventory management software that will sync and connect all your multi-locations, as well as brings automation in the system to save time and effort.
In case you are looking for the best inventory system in India, then you should know about major types of inventory management systems. Let’s now discuss these major types of inventory management systems and their pros and cons. Read Other Related Content: e-Invoicing Software
Using Inventory spreadsheet
Many small businesses use spreadsheets like excel for keeping track of their inventory. This type of inventory management system can cause many errors & issues like human errors. This method is easily accessible but costly because you have to hire extra staff to manage your inventory on excel.
Pros :
- There is no need of installing or purchasing any new software/set-up. Spreadsheets are available free of cost on the cloud, which provides easy access.
- Available for Free
- Easy access. No installation required
Cons:
- Generally doesn’t fulfil your management needs
- High chances of human errors
- Not easy to scale
- Have very limited functions
ERP Systems
Erp systems refer to an integrated approach to business planning & operations of inventory management. With the help of inventory management software businesses can efficiently manage logistics, finances, inventories & operations. ERP is a complete package of business management solutions.
Marg ERP is an integrated inventory management software that empowers the business owners of small & medium businesses to manage their business operations in a productive & concise manner.
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Using the software the businesses can track every inch of their inventory. Therefore if you are looking for inventory software for small or medium businesses, so you could choose Marg ERP.
Marg ERP has modern features in addition to the basic ones, so it will grow with your business.
Pros:
- It is a complete system to manage accounting, inventory, supply chain, HR, and more effortlessly.
- Provides greater data security
- The software is able to handle complex and large supply chains
- Helps in advanced location and warehouse management
- Affordable in cost
- Chances of human errors are none
- Can be customized as per the requirements
Cons:
- Can be a complex workflow
- Need setup & installation
- Need training time to learn the software
Cloud-based Inventory Management System
Cloud-based inventory management system is different from spreadsheets. This system is hosted on the internet, in which all the data gets stored on third-party servers. The software is an ERP software or only inventory management software that allows the user to access the records from anywhere anytime.
This software reduces the chance of errors, delays, and other complications, which are commonly faced in the case of spreadsheets.
Pros:
- Shared across the company, this works as a single source of data which improves the visibility and truth of data across team members
- It is oriented to perfectly manage the supply chain functions
- Get real-time updates
- Minimum risk of errors
- Automated function & processes for repetitive tasks
Cons:
- You need a set-up
- Costs higher than spreadsheets but more effective
- May require maintenance fee or charges
