Table of Contents
1. Introduction
2. What is a Perpetual Inventory System
3. Perpetual Inventory System vs. Periodic Inventory System
4. Key Features of Perpetual Inventory Systems
– Real-Time Tracking
– Automatic Stock Adjustments
– Reorder Alerts
– Integration with ERP and POS Systems
5. When to Use a Perpetual Inventory System
– High Transaction Volume
– Multiple Sales Channels
– Complex Inventory Needs
6. Let’s Simplify Operations with Perpetual Inventory System
As a seller, your inventory is your biggest asset. So, what happens when you find yourself out of stock on a popular item or, even worse, stuck with too much of something that’s just not selling? It’s frustrating, right? But as more brands are adopting technology, the e-commerce ecosystem is shifting to help you tackle these challenges head-on.
That’s where the Perpetual Inventory System comes into the picture. This technology-driven solution keeps your stock levels accurate and up-to-date in real-time. Let’s explore how it works, its benefits, and why it might just be the key to smoother, stress-free inventory management.
What is a Perpetual Inventory System and How It Works
Simply put, a Perpetual Inventory System is an inventory management system that is your personal assistant that tracks your stock 24/7. Every time you sell, get a return, or receive new stock, the system updates your inventory in real-time. You don’t have to wait for a monthly or yearly count because everything is automatic with this system, so you always know exactly how much inventory you have.
This system doesn’t just keep track of what’s coming in and going out. It also helps you analyze trends, know the best-selling products, and even flag slow-movers that might be tying up valuable space in your warehouse.
But how does it really work? Let’s say a customer buys the last piece of your best selling product online. The moment the purchase is made, your inventory count is updated. If another customer tries to buy the same item a minute later, they’ll see it’s out of stock. This prevents overselling and helps you manage your stock more effectively.
Sounds pretty useful, right? Now, let’s understand how it is different from the traditional (periodic) inventory management system.
Perpetual Inventory System vs. Periodic Inventory System
Now, how does it differ from the traditional Periodic Inventory System? Well, with a Periodic Inventory System, you only count and update your stock at set intervals, maybe once a month or even quarterly. That means between those counts, you don’t have an up-to-date view of your inventory, which can lead to stockouts or overstocking.
On the flip side, a Perpetual Inventory System keeps you updated in real time. If you’re selling on multiple platforms or handling a lot of orders, this system is a must-have.It saves you from the stress of manual stock counts and helps you stay on top of your inventory at all times.
Key Features & Advantages of Perpetual Inventory Systems
Here are some key features that make your inventory management smarter:
1. Real-time Tracking
Unlike traditional methods, where you might do a stock count once a month or even less frequently, with a Perpetual Inventory System, you can monitor your inventory in real-time. It keeps your inventory counts accurate by recording every transaction as it happens. So, if someone buys the last red dress in your store, your system will immediately reflect that it’s out of stock. No delays, no manual updates. You can easily maintain optimal stock levels, ensuring you’re neither overstocked nor understocked.
Advanced Inventory Management Software
Focus on expanding your business while Unicommerce Inventory Management Software handles your e-commerce operations seamlessly.
2. Automatic Stock Adjustments
An advanced Perpetual Inventory System comes with Automatic Stock Adjustments. This means your inventory counts update automatically whenever there’s a change. For example, if a customer buys an item, your system immediately reflects this sale by decreasing the inventory count. If you receive a new shipment, your inventory goes up accordingly. This automatic updating ensures that your stock levels are always accurate and current without any manual effort.
3. Reorder Alerts
One of the major features of a perpetual inventory system is the Reorder Alerts. Every time your inventory reaches a certain threshold, let’s say you set a minimum quantity for a particular item, the system automatically sends you a notification. This means you can reorder just in time, ensuring you always have enough stock to meet customer demand. Moreover, these alerts can be customized based on your preferences. You can set different thresholds for different products depending on their sales velocity and importance.
4. Integration with ERP and POS Systems
A Perpetual Inventory System works best when it’s part of a connected network with your ERP and POS systems. This setup keeps everything in sync; when a sale or return happens, your inventory updates instantly across all sales channels, so you’re always up-to-date. For example, if a product sells in-store, it’s also shown as out of stock online right away. Also, linking with your ERP helps connect inventory with other key areas like procurement and accounting. So, if stock levels drop, your ERP can trigger reorders or adjust financial plans automatically, keeping your operations smooth and coordinated.
When to Use a Perpetual Inventory System
A Perpetual Inventory System is ideal for businesses that need real-time visibility and precise control over their inventory. Here’s when it’s particularly beneficial to use such a system:
1. High Transaction Volume
If your business is managing a huge number of transactions, whether it’s dozens or thousands per day, keeping up with inventory manually can be overwhelming. A Perpetual Inventory System updates stock levels instantly with each sale, purchase, or return. This real-time tracking ensures your inventory data is always current, so you won’t face unexpected stockouts or overselling issues.
2. Multiple Sales Channels
Got a website, physical store, and maybe even a few marketplaces? If you’re selling across various platforms, keeping your inventory synchronized can get tricky. A Perpetual Inventory System helps by updating stock levels across all channels instantly, so you don’t accidentally oversell or run into stockouts.
3. Complex Inventory Needs
Do you sell a wide range of products, bundles, or items that require special tracking, like serial numbers or expiry dates? A Perpetual Inventory System is designed to handle this kind of complexity. It tracks every detail of your inventory, so you don’t have to worry about losing track of items or dealing with inaccuracies.
Let’s Simplify Operations with Perpetual Inventory System!
If you want to stay ahead in this competitive ecosystem you need to keep investing in the latest technology. A Perpetual Inventory System is a prime example, offering real-time tracking and automatic updates that keep your inventory accurate and your operations smooth. By embedding such advanced solutions into your business, you’re not just keeping up, you’re leading the way. So go ahead, make the leap and watch your business thrive!
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