Advantages of Automated System over Manual System

Advantages of Automated System over Manual System

Today, even the smallest retail businesses require implementing some form of inventory management system to keep an accurate stock count, as well as for accounting purposes.

The business owners usually have a choice between using an automated and a manual inventory management system. Here we will discuss the advantages of automated systems over the manual system but first have a look at the manual system also:

The Simplicity

For a small retail business that stocks a limited amount of inventory or that deals with the inventory slowly, a manual inventory management system can work fine. The business owner can easily recognize how much stock is on hand with a manual system or simply by applying an eye-ball test in the shop to see if it is time to order more. The owner won’t need to spend a lot of money on inventory management software or spend the time in learning how to operate it.

Sense of Control

A manual system gives a greater sense of control to the small business owner. Rather than depending on a computer to check when it’s time to reorder goods, the owner can manage this process on his own due to the small size of business. The requirement to view his stock on a daily basis, such as while counting stock before ordering, gives him the excuse to assess the condition of his stock, minimizing the risk of a customer receiving contaminated goods.

Labor-Intensive

From labor point of view, the advantages of automated systems over manual systems are noticeable. A major disadvantage of manual inventory systems is that they are highly labor-intensive to operate. They require constant monitoring to ascertain that each activity is accounted for and that the products are kept at the proper stocking levels. It is also extremely difficult and time-consuming to share inventory record information throughout the business because of the lack of computerization makes the inventory and records accessing, more troublesome process. A lot of time spent in checking the inventory levels manually could be efficiently used on more rich activities for the business.

Human Error:

The advantages of the automated system over the manual system are countless. A manual inventory system directly relies on the action of the person using it, which increases the risk of human error. Often it happens that people miss the recording of a transaction or they simply do mistake in counting the items. This results in additional orders that do loss to the income, increase the inventory carrying costs and also use up the precious storage space. The inaccurate manual counts could also result in not loss of inventory stock that means the business can run out of a specific item at the time. This provides loss to the business.

Speed and Accuracy

Computerized retail management systems are quicker as far as entering the information is concerned. You can enter bulk inventory items in leat amount of time and add them to their respective categories. It provides you the ease of access in browsing the products. The counting of stock is also accurate and perfect in the automated systems. This is the guaranteed advantage of the automated system over the manual system.

The Smart business owners always prefer the automated systems. A computerized inventory management system makes all things; from entering information to taking and managing inventory, easier. Doing a manual count of inventory may take several days, but with an automated inventory management system, the same process can be done in few of hours depending on the amount and categories of items. The long-running companies make advanced inventory management systems that fit almost all kind of retail businesses. They make both the generic and business-specific inventory management systems that take a strong hold of all the retail business operations. One of the most efficient retail inventory management systems is the MaxBook, developed by MaxMind Solution. Maxbook provides complete retail inventory business management solution environment with easy to use interface. It enables its users to perform sales, purchase, stock transfer, goods return and customer invoices in just a few clicks. The major advantage of the Maxbook is that it provides multi-store usage facility. You can make better decisions about managing stocks and inventory orders and their distribution among multiple stores.

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