Is your business struggling to keep track of inventory in real-time? Have you heard of what a perpetual inventory system is? Explore it more and learn how it can help your businesses automate inventory tracking and improve your operations.
What is a perpetual inventory system?
Perpetual inventory definition is: a type of inventory management system that updates the records for inventory continuously and automatically. It does so by tracking all sold items and adjustments made.
It differs from a periodic inventory system because it doesn’t need scheduled intervals to update inventory, it does it continuously instead, right at the moment purchases are being made.
A perpetual inventory method provides real-time data accuracy, which is more reliable than periodic stock reporting, and leads to less confusion and fewer errors when managing your inventory.
At EP Logistics, we offer advanced inventory management system solutions integrated with the best technologies to make your operations easier and more efficient.
How does the perpetual inventory system work?
Here’s how perpetual inventory systems enhance the way your stocks are managed and the technologies that aid it:
Real-time data updates
Each time a purchase is made, and the transaction goes through, the perpetual inventory system updates inventory records instantly.
This method is more efficient because it is harder to come across stock discrepancies, ensuring your item counts are more accurate, helping you make better-informed decisions on when to restock, and avoiding understocks.
Integration with Point of Sale (POS) Systems
A perpetual inventory method is often integrated with a POS (point of sale system), to enable this automatic inventory tracking as soon as the item is sold. Using this combo makes managing your stock levels easier, reduces errors, and eliminates the need for manual stock counting.
Our solutions, at EP Logistics, can be fully integrated with POS systems to ensure seamless automatic tracking between your items and your recorded transactions.
Use of technology (barcodes, RFID, inventory management software)
The most common tools often paired with perpetual inventory method are barcodes, RFID tags, and inventory management system software that help:
- Tracking the inventory in an organized and efficient way
- Provide detailed insights into stock levels
- Help better analyze and forecast demand trends.
At EP Logistics, we offer you inventory management solutions integrated with the technology needed for the proper handling of your goods and accurate tracking of your stock levels with ease.
Perpetual inventory vs. periodic inventory: key differences
These are the main differences between a periodic inventory system and a perpetual inventory system:
Frequency of updates
A periodic inventory system needs to have scheduled periods to update the inventory and only does it during those times, whether monthly or quarterly, for example. This periodic inventory method gives you less control over your actual inventory levels and a larger margin for errors.
On the other hand, a perpetual inventory system:
- Updates the stock levels in real-time.
- Keeps your inventory count up to date.
- Prevents confusions.
- Gives you accurate indicators for better decision-making.
- Helps maintain optimal stock levels even during peak seasons.
Accuracy and error reduction
Because of the instant updates, the perpetual inventory method minimizes errors and risks, providing you with a more accurate panorama of your inventory status so you can manage it more efficiently and ensure your items are always ready and available for your customers.
Benefits of implementing a perpetual inventory system
Implementing the use of a perpetual inventory system will bring benefits not only to your inventory management but to your overall operations and supply chain, here is how:
Increased inventory accuracy
A perpetual inventory system will ensure you always have precise stock information, eliminating the need for manual reconciliations. Utilizing this system:
- Saves resources.
- Cuts down operation times.
- Decreases chances for human errors.
Improved customer satisfaction
Since the perpetual inventory method provides real-time stock visibility, order fulfillment becomes faster, resulting in fewer backorders. This method:
- Improves your supply chain efficiency.
- Increases your service reliability.
- Boosts your customer satisfaction.
Enhanced decision-making with real-time data
Because data from a perpetual inventory system is accurate and updated in real-time, it allows for better forecasting, accurate purchase decisions, and increased warehouse efficiency to prevent overstocking or understocking.
At EP Logistics, we focus on helping you optimize your overall supply chain through our custom-tailored inventory management solutions and complementary services.
The impact of efficient inventory management
Having accurate inventory tracking for efficient management of your stock level is crucial to keep both your supply chain running without delays and your customers happy.
The impact of efficient inventory management includes:
- Lower operational costs.
- Faster order fulfillment.
- Better customer service.
- Competitive advantage during peak season, holidays, and special sale events.
- Increased customer satisfaction
- Repeated sales.
- Higher profits.
Our warehousing services at EP Logistics are designed to integrate the best inventory management techniques and systems to ensure your inventory management is accurate, and your operations are running efficiently.
Choosing EP Logistics as your trusted 3PL
With many years of proven experience in implementing efficient inventory management solutions, perpetual inventory, dedicated warehousing, and e-commerce fulfillment, at EP Logistics we pride ourselves in being a renowned 3PL in Mexico and the U.S.
If you are ready to improve your inventory management and discover all the solutions we offer for your business to boost operations, cut costs, and increase productivity, reach out to our team at EP Logistics today!
