Management Systems 1

Inventory Management Systems

An inventory control system is a set of hardware and software based tools that automate the process of tracking goods. The type of inventory tracked with an inventory control system may include almost any type of calculable good to include food, clothing, books, equipment, and any other item that consumers, retailers, or wholesalers may purchase. Modern-day inventory control systems are practically completely based on barcode technology. Regardless of technology, all inventory systems require some element of visual inventory management. The use of bar codes, point of sale or stub control all requires manual verification periodically.
As an owner of a small clothing store it is important to use an inventory system for the success and growth of the business. Inventory systems serve multiple purposes and have many functions. The systems’ primary function is to assist in promoting sales by tracking available good and materials by providing sufficient availability of products for customers. In addition, establishing the value of the products on the shelf will enable the owner to monitor the number of goods at a specific period of time which will assist in maximizing profits and minimize losses. The Small Business Administration suggests all inventory systems strive to strike a balance between managing costs and the business advantages of a broad selection of good to offer to customers.

Management Systems 2

Inventory Management Systems

Barcoding Inc.’s Active Shelf inventory tracking system is an affordable method of conducting continuous inventory counts in retail stores, stockrooms, pharmacies, libraries, and warehouses. It allows automated tracking of assets in libraries, document storage facilities, and data tape archives. Initially barcodes were developed to computerize the process of grocery store checkout, their capability to convert a wide variety of alphabetical and numeric symbols makes them ideal for encoding goods for inventory applications. In recent years, Radio Frequency another promising technology for tracking inventory has also has made its way into stores, warehouses and factories. Radio frequency identification (RFID), uses a microchip to transmit product information -- such as type, manufacturer and serial number -- to a scanner or other data collection device. Inventory control systems work in real-time using wireless technology to transmit information to a central computer system as transactions occur. The assets that can be traced are those items that can be stored on-end on a shelf, and that lend themselves to RFID tagging, such as books, data tapes, and document binders. A single RDID reader is combined with a multitude of antennas which are placed within the shelving units to create inventory zones, which are continuously updated and monitored. The diagram on the next page shows the set-up and lay-out of the RFID system.

Management Systems 3

Inventory Management Systems

When asset ID tags are read, the following data can be displayed:
The Active Shelf System has the ability to connect separate devices at the edge of each shelf, such as a light or sensor, which can be used to detect motion near the shelf and have that inventory level monitored immediately. If an item is found in the wrong location, a light can be turned on to alert workers that something is out of place.
• Asset is present in correct location on shelf – tag # appears in normal font/color.
• Asset is present, but in wrong location – tag # appears in purple and gives location of asset.
• Asset is missing from inventory but not checked out – tag # appears in red.
• Asset is checked out of inventory – tag # appears in green.
Asset has been recently returned to inventory – tag # appears in yellow.

www.barcoding.com

Management Systems 4

Inventory Management Systems

Control of goods, which usually embodies 45% to 90% of all expenditures for business, is vital to safeguard the business has the right goods on hand to take avoiding action to stock-outs, to prevent shrinkage (spoilage/theft), and to provide accurate accounting. Often, those who are in the retail clothing businesses have concerns with merchandise not being placed in their correct location. Having employees spend time searching for merchandise negatively impacts daily productivity. In addition, the potential loss of sales may occur when customers cannot find a particular item in a certain size. Upgrading can be done online and doesn’t cause disruption of your daily business process. Based on your needs and the size of your business, you can upgrade based the factory recommendation or as your company grows. By implementing an Active Shelf system, each item is tracked, so your employees know the exact location of the size of a specific item. This will help turn-over your inventory more rapidly as well as improve customer service by allowing your staff to serve each customer more efficiently and help them find what they need in less time.

Management Systems 5

Inventory Management Systems According to RFID Journal most companies that sell RFID tags do not quote prices because pricing is based on volume, the amount of memory on the tag and the packaging of the tag (whether it’s encased in plastic or embedded in a label, for instance), whether the tag is active or passive and much more. Generally speaking, active tags are $25 and up. Active tags with special protective housing, extra-long battery life or sensors can run $100 or more. A passive 96-bit EPC inlay (chip and antenna mounted on a substrate) costs from 7 to 15 U.S. cents. If the tag is embedded in a thermal transfer label on which companies can print a bar code, the price rises to 15 cents and up. Low- and high-frequency tags tend to cost a little more. Retailers are able to run reports to determine their profits and loss during any specific time period. This system is used by small and big retailers and has proven to be cost effective and user friendly taking the retail industry by storm.