As a startup or small business, it might seem like a good idea to use free inventory control spreadsheets to manage your inventory. It's certainly cheaper than using software that comes with an inventory management program and its own spreadsheets.
You’ll find, however, that that’s only effective for a few weeks; you’ll soon discover why the inventory management software and its spreadsheets are worth the money.
Free spreadsheets require a lot of maintenance. If you don't put your inventory information into the spreadsheet, the inventory theoretically doesn’t exist, which could cause real problems when it comes to year-end counts and/or auditing time. In addition, if you don’t update the data in a spreadsheet every single day, your data is not accurately reflecting your business.
Those types of spreadsheets can be shared with others via email, printouts, thumb drives, shared servers, etc., but if you don’t make a conscious effort to share that information, your employees won’t have enough knowledge to do their jobs well. And in addition to updating the data in the spreadsheet every day, you’ll also have to share the new data with your employees every time you update it.
The best way to keep track of inventory is to record its movement throughout your system. The only way to do that with free spreadsheets is manually – so if a product moves from the shelf to the prep area to the truck for shipment, that’s three manual updates for you to make.
Sounds like a lot of work, right? That’s because it is. Software systems that come with inventory management modules – like Sage ERP X3, for example – are, admittedly, more expensive. The features and ease of use, however, offset the price. Those systems scan inventory as it comes in and then effortlessly follows it as it moves through every stage of your process. It’s as easy as an employee inputting an order and clicking the button to move it from the shelf to the prep area.
In addition, that information is available to anyone at any time. With those types of software systems, the information is saved in a central location; managers can view it from their offices, warehouse employees can see it from the floor, etc. And if there are others that you’d like to have access to the information, it’s as simple as automating a task to share your data with whomever you want, whenever you want.
Compared to the time you'll waste using free spreadsheets to manage your inventory, the money you'll spend on a new software system to ease the process will seem paltry.
If you have any other questions, contact Oates & Company today.
