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Inventory Management System for Small Business

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Submitted By jimshrestha
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Inventory Management System for small business Jim Shrestha Washington Adventist University, Takoma Park, Silver Spring, MD
Abstract
In this paper, I tried to illustrate the importance of inventory management system for small business. The term small business denotes to all those business which is family or person owned and donot have maximum revenue. This paper explains the idea, how to set up new inventory management system with minimal budget. As my paper focuses more on small business, I explain very common and effortless way of setting up new inventory management system. Most of the informations are extracted from different inventory management supplier’s official websites. With these information and some visual figures, I anticipate everyone can understand how setting up new inventory management system in their business can be more economical and time saving.
Inventory Management System Inventory management system is the key term to the modern business era. Without a proper inventory management tools, a business cannot perform in it’s fullest. Simply it is the automated management method of business inventory where every purchase and sale are listed in an organised fashion. The systems ensure customers always have enough of what they want and balance that goal against a retailer's financial need to maintain as little stock as possible. Because mismanaged inventory leads to disappointed customers. That’s why this inventory management system has become no excuse rule for all the gaint business enterprises. For the small business also it is an intergral part of the business which boosts them to increase the production, perform the sale and stand as a strong competitor in its local and global competition business. Overally, it means to maximize the profit and sale. There is no any better option rather than bringing inventory management system for the small business like the local clothing store. Because it has an ability to track sales and available inventory, communicate with suppliers and receive and incorporate other data like seasonal demand. Simply it will tell the store owner when it’s time to reorder the products and how much to purchase. It definatly helps to minimizes the costs by maximizing the profit through well organisation of all the inventories and sales.

Managing Inventory Processing Orders

1.0 Planning
Before starting the system, we have to plan for the system. As it is one time cost, we need to be extra careful so that we can develop this project with great success. Belows are some of the planning we should be doing before setting up this system. • Organise the product being inventoried with inventory technician. • Design storage shelves to provide a clear line of site to each item. • Create an inventory spreadsheet. • Educate everyone in the bussiness about the new system being launch. • Planning of the required budget for the new system.

2.0 Equipments needed
2.1 Hardwares-

• Scanners -Scanner selection is based upon the need to scan 1D or 2D barcodes. The mobility and ergonomics of the scanner should be considered as well as the need to integrate scanning into other tools such as a weigh scale.

• Mobile computers - They can scan 1D and 2D barcodes, including the increasingly popular QR code. They leverage local Wi-Fi networks and carrier-based services for external communication.

• Thermal label printers - In some barcode environments, printers are needed for custom labels or tags.

• Computers – They are the intergral part of this system. Usually everything is electronically organised. So computers are used to view the sales, inventories, profits, vendors and their products.

2.2 Softwares

Some of the most popular and cost effective softwares for small businesses are

• Primesoft organizer pro V3

• Fish bowl

• Free style commerce

2.3 Other requirements

• Wired Lan and Wireless network

• Cable

3.0 Cost of the system

In the market, both required hardware and software can be purchase as a bundle which is way too cheaper than the individual items. Following are some of the popular bundle with the least prices.

• Quick books point of sale 2013 basic software and hardware bundle - $599.99

(Available at pos-deal.com)

• Inventory control inventory tracking solution - $1333.7

Beside these things, other required equipments and materials are not so expensive and can be easily available in local market. We can use existing computer and cash counter plus other equipments.

4.0 Maintenance and Design

The project is quite cost effective as it doesnot require frequent maintenance. But we might need to design the ware house and sales floor with some extra shelves for systematic organisation of the product and also need to set up the location labels which should be easy to read and track the record. Unique and distinctive item number helps to record the inventory of the item in very organise way. To setup all these, some sales floor and stock room construction is needed.

5.0 Work Flow Diagram

Fig. workflow diagram of the inventory management

6.0 Conclusion
As we discussed above, automated inventory management system is better than traditional and manual method. It saves time, money and helps to generate more profit. It is one time expenses and also not so expensive to set up the new automated inventory management system in the business. But there need to be some planning before executing the project and monitoring should be performed at a regular basic.

Referances
Ingram, D. (2009). Setting up an inventory control system. Retrive from http://www.smallbusiness.chron.com Crosby, T. (2007). "How Inventory Management Systems Work" Setting up an inventory
Control system. Retrive from http://money.howstuffworks.com/how-inventory-management-systems-work.htm Fish bowl inventory (2001-2013) Retrive from http://www.fishbowlinventory.com/products/pricing/ Pos-deal (2014) Retrive from http://www.pos-deals.com/discount/bundles?gclid=CMH2_pPg97sCFSHNOgod0EoAzw -----------------------
Place an Order

Set up all Equipments

Scan and record the purchase

Fill the sales floor and scan the quantities

Sales at POS and scan the sales

Fill the sales floor

Not Available stock

Yes
In
Backroom

Happy
Customer

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