What are the Best Tips for Automated Inventory Management?

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  • Written By: Osmand Vitez
  • Edited By: Kristen Osborne
  • Last Modified Date: 03 October 2019
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Automated inventory management allows companies to conduct inventory activities with the use of computer hardware and software. New developments in technology allow companies to order, receive, track, adjust and alter business processes using business technology. The best tips for automated inventory management are to use a system compatible with other companies in the business environment, train employees to use the system properly, install updates as needed and be sure to fully train employees on the system. Proactive management is a must when using technology for inventory management.

Many companies use technology that allows for customization to their internal business processes. Some companies may even design an internal automated inventory management system that is specific to their business operations. While customized software will often suit a company’s operations best, the software may not work well with vendors or retailers looking to order inventory through electronic data interchange. Companies should consider reviewing the most popular computer systems in use and discuss modifying them to meet the company’s needs. This will provide the most exposure for the company in terms of business technology, and possibly cut down on the maintenance for the system.


Training employees is another necessary option for automated inventory management. Not only will older workers struggle to learn the system, but younger workers may also be unfamiliar with the system. Allowing employees to work the system how they desire may result in breaches to the company’s protocol that reduces the effectiveness of the overall inventory system. Companies should create a point person who has the ability to act as a liaison between the software vendor and employees needing time to train and learn the automated inventory management system.

Computer technology is not a static tool for use by businesses. Inventory management software vendors will regularly upgrade their software and add new options to the software. While companies may purchase technical support for the system during installation, upgrades may require the company to pay more money to the vendor. Upgrades will allow the software vendor to correct glitches and improve the optimization of the inventory management software.

An automated inventory management software system can quickly become a burden on a company if not used properly. Companies may feel like they become slaves to the system if they cannot complete a task as desired. Owners and managers should find a way to make sure workers don't believe that they cannot perform certain tasks because of the inventory system. If workers deem the system unable to provide solutions to common problems, this can become a disadvantage. In order to avoid this, companies should make sure employees are fully trained on the system, and that the software comes with adequate user support.


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