When it comes to categorizing Inventory software, there are two primary types it can classify into. One of them being periodic inventory software and the other one being the perpetual one.
Both have their own pros and cons depending on your needs and capabilities one can choose among them.
One can enhance efficiency and accuracy by using both at the moment of need. Resulting in forming the best inventory management system for oneself. Usually, it’s one of the inventory software from both of them to be used by a facility. But as the needs arise in number the urge to fulfill the needs rises. For that many companies take advantage by coupling both kinds of software types for one. So, let’s explore how both of these inventory software types are different from each other and why sometimes coupling these two into one is a good idea.
Periodic Inventory System
Periodic inventory software is simply the one that uses physical counting on a periodic basis. This could either be manual counting or the checklists coupled with barcode scanners. Most organizations try to make the workflow easy and smooth with barcode readers.
Barcode readers help the organizations remove the need for manually updating the spreadsheets keeping the labor-intensive work to a minimum. By this one can record all the inventories into a database and compare the data with previous periods.
While a periodic inventory saves some cost, it does escalate the labor work. Especially in big operations where one has to record hundreds of thousands of items.
Perpetual Inventory Software
As the name suggests it is a system that works constantly. Perpetual inventory software keeps you updated all the time. Be it the entry of inventory in a facility, moving, selling, or an inventory being used at the moment the central system updates and shows the real-time data.
The perpetual inventory software is used for large-scale operations. Where there are hundreds if not thousands of inventories are being recorded and tracked at the moment.
Perpetual inventory software outranks the periodic inventory software in many ways. To start with one the real-time data updates never hurts to manage the operations. Assisting you in sorting the sheets with the number of goods sold and costs of each item sold. Rather than being manually fed to the system. Making the data precise and labor work to a minimum it helps keeping the operations accurately up and running.