Abstract In today’s growing market many businesses are turning toward automated systems to perform their everyday tasks. Automated systems can replace the cost and time consuming processes that were once completed by hand while providing companies with more accurate data. One automated system that is becoming more popular is the automated inventory system. This system is used to track the merchandise and goods of retail stores, grocery stores, hardware stores, etc. In this paper I will discuss the background of automated inventory systems, including what they are, how they work and what type of data and information that they provide for businesses. I will also give some examples of companies that have automated inventory systems and how they have changed their business. I will provide the advantages and disadvantages of automated inventory systems and the affect they can have on a businesses’ growth and competitive edge. Automated inventory systems play a large role in today’s businesses, especially the retail industry. This is because businesses want the ability to access and organize data in a quick and efficient manner. With an automated inventory system, businesses can rely on computers to do tasks that were once performed manually, such as inventory checks and product sales. These tasks can be very overwhelming for businesses to do manually because of their size, number of stores, and their product diversity. This can all be changed, though. With automated inventory systems these processes can be handled in a timelier manner and also be more accurate and reliable than ever before. Automated Inventory Systems are specialized software that allows businesses to input their inventory and track the products that are delivered and sold. At the time of arrival the products are registered into the database and are