Inventory Management Systems
CIS 210
Nathan Heil
10/17/14
Prof. Kurt Brandquist

In a changing and growing market, many businesses are turning toward automated systems to perform not just inventory, but many tasks that are in their everyday routine. Automated systems can replace the cost and time consuming processes that were once completed by hand while providing companies with more accurate data. 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 what goes into the implementation of such a system. 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 added to the list of current inventory. They can track the depreciating inventory by using barcodes and scanners on all the products being sold. This is done with special software that instantly takes the product out of inventory at the point of sale or POS. With point of sales software, products are subtracted from the inventory count the moment they are sold instead of being deleted manually at a later time. This process allows data to be more accurate than the previous process because the business knows exactly how much inventory they have in stock at any given time. If the inventory becomes low, the business is notified by the system to order more inventories.
Now that we know how an Automated Inventory system works, let’s take a look at the cost and maintenance of such a system. Given that the provided scenario/business we have is small, we can take a look at more cost-effective solutions that can still provide an effective system in a retail environment and yet, not break the bank in doing so. For logistical purposes, I will break down the price by each piece of necessary inventory. Firstly, we need the bar code scanner. In today’s market, there are a wide variety of different brands and models of bar code scanners which make it easy to find the right one that fits your budget. Three of the top selling bar code scanners are the Honeywell Xenon 1902h (for approx., $860), Symbol LS2208 (for approx. $120), and the Unitech AS10 (for approx. $50). Given that we are looking at cutting costs for this type of a system and also given the low volume the system will be dealing with, it would be prudent to choose the third option as the better fit. Keep in mind that you could purchase two of these scanners for a price that is less than the total price of the two previous options. Along the same lines, there are other methods to scanning, such as mobile computers. However, these tend to be on the high end in terms of price and so this would not be the prudent route for a small retail business.
Next up is the software to store and process the inventory for your automated system in various ways. As a general statement, this is where your money will be spent most on. Regardless of what you are trying to accomplish, you will need to make sure that the software has the necessary requirements for what you’re trying to accomplish in your business setting. There are so many options for this type of software but, one option that is top rated on multiple sites is labeled Scout topShelf Plus. With this software, you will have the ability to create purchase orders/sales orders, receive products, pick/pack/ship products, create reports, manage serialized assets and integrate your barcode scanner or scanner’s. Relative to the rest of the competition, this software is priced at $600 and that is a one year price. This is a fairly new product and so this price is for one year, as it is a cloud based application that will store any information on a server rather than relying on your computers HDD space.
Moving right along is the bar code printer of which prices will change frequently and you will need to provide up to date information regarding your products to customers and employees alike. These printers can be used for printing asset labels from your desk or in the warehouse making shipping labels. In this market, there are, once again, an abundant amount of options for this product, but I have narrowed it down to one for budget’s sake. This is the Zebra GK420t printer. This is a thermal transfer printer that can print up to 203 dpi, has a four inch print width (max), serial, parallel, and USB interfaces. This printer is priced around $600 dollars and the cartridges are around $23. Along with the printer, you must also order the labels that will contain the information you need changed about the product. Generally speaking you can order these in bulk which is how I priced this out for the small business as this will negate the reasoning of ordering more in the future. Zebra Z-Select 4000D in bulk at 2100 rolls is around $170 and can last for a very long time. As a final amount of what an Automated Inventory System would run a small company, with two scanners, two printers, 4 cartridges, labels and the software, an approximate amount would be close to $1600.
Now, price is obviously of the utmost importance because if your budget does not allow for the cutting edge technology listed on the market currently, you cannot try to work that into your business. The above price is fairly reasonable considering the size of the business and what it is being used for. But along with new technology, comes the upkeep of said equipment. For instance, for the software, you will most likely need to pay a fee to keep the cloud storage per year. While this will likely not be the same price as the initial product cost, it will be something to factor into your budget and be aware of. Along with the subscription comes the OS upkeep. Keeping updated with the latest versions of the software, drivers for the equipment as they relate to your OS, and also the condition of the physical aspects of the devices (i.e. paper quality, cord structure whether that be USB or power cord) will be key in sustaining the longevity of your investments. At some point, you have to factor in that some, if not all, of these devices will need to be replaced depending on the wear and tear they experience.
An automated inventory system is software that allows companies to better manage their inventory systems. They increase companies’ productivity and sales while decreasing their cost and time spent to conduct an inventory count manually. As technology grows and businesses expand, it is becoming more and more obvious that having manual processes to perform tasks are no longer to the company’s advantage. If they want a competitive edge over companies automating is the way to go.

References

BarcodesInc (1994-2014) Inventory Control System http://www.barcodesinc.com retrieved on 10/16/2014 from http://www.barcodesinc.com/articles/inventory-control-system.htm

Manual or Automated Inventory Management. Retrieved February 14, 2005, from www.terrauniversal.com/products/autostorage/morainventrack.php.

Santosus, Megan. (1997, September). Working Smart. Maximize the Payoff from Information Technology. Retrieved February. 14, 2005, from CIO Magazine, www.cio.com/archive/090197/smart.html