Manual Inventory Is An Inaccurate System That Can Impact An Organization Financially

720 Words Dec 6th, 2015 3 Pages
We can conclude that manual inventory is an inaccurate system that can impact an organization financially. Inaccurate inventory is one of the major challenges for Supply Chain Managers, whether businesses are missing inventory that should be on the shelves or has more products than they should have, they will suffer expenses. The data found in this research shows that main reasons why businesses need to stop performing manual inventory count are inaccuracy, time consuming, and expensive.
Inventory misplacement and inaccuracy are expensive. When items are misplaced they become unavailable for sale until found. Inaccurate inventory count leads to incorrect forecasting and material requisition. Manual inventory counts rely on employees’ memory and experience, which can result in more operation time and mistakes. Supply Chain Managers are always challenge on how to allocate their limited resources, such as employee time in their effort to reduce inventory inaccuracy. Implementing technology can benefit inventory management system through better traceability and visibility of products.
There is no question of the pressures facing supply chains to improved service levels and accurately control cots. As this research shows, implementing technology can deliver a tangible return of investment and will play an even bigger role in the future. Technology is without doubt the best solution for inventory inaccuracy and it can replace the annual manual physical count. Currently there are…

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