Many business owners stick to Excel as a tool for Inventory Management because it is simple in use and inexpensive. In reality it causes more damage to business than it really helps in inventory tracking. As the company grows, it becomes increasingly more difficult to organize schedules and keep track of certain types of data. As the number of transactions grows, Excel cannot provide up-to-the-minute, real-time inventory tracking. As Excel documents grow in size, business owners come to understand that business cannot grow further for the following reasons:
1. Manual entering of inventory causes inevitable data errors which are not easily spotted and therefore cannot be corrected. It leads to confusion, re-ordering, overstocking or understocking. The manual approach is time consuming and causes unnecessary expenditures.
2. Excel limits use to only one user at a time, while most companies have several people who do the inventory tracking. This leads to an increase in error and inefficiency. Today there is a need for multiple users to review and update inventory details; this can be done by an automated inventory tracking system.
3. Acting upon wrong or insufficient information can be harmful to business. Excel doesn’t provide up-to-the-minute, real-time information. When inventory data is entered at certain times only, the business owner gets a huge unsynchronized spreadsheet. This can be misleading as data can change between the time it is entered and the time when a worker or a business owner checks it. There is a need for real-time inventory tracking.
4. It takes a really long time to find or track items in Excel document. A business owner or an accountant has to deal with enormous spreadsheets to find acute information. Besides that, they have to manually count inventory and enter data into a spreadsheet. Printed inventories have to be transferred into spreadsheets, which is time consuming. As a result, it is next to impossible to have a clear picture of resources’ allocation and movement.
Even though Excel is familiar and inexpensive, it makes sense to switch to an easily operated, automated and cheaper than expected inventory software, such as HandiFox. It will pay for itself in no time with cost savings and increased sales.