From Manual to Digital: The 4 Evolution of Warehouse Inventory Tracking Methods

With the dynamic nature of businesses, new methods of management have continuously been invented. One of the business departments that has been continuously witnessing these changes is the warehouse. Considering the significance of inventory management, numerous inventory tracking methods have been invented since the 20th century. The sole purpose of these advancements is to improve the accuracy of inventory tracking. 

Therefore, in this article, we will deeply understand the 4 most significant changes and advancements in warehouse inventory tracking methods, along with their disadvantages and benefits. Also, learn about Considerations When Buying Racks for Your Workspaces by reading this article.

In the early days of inventory tracking methods, all the recording and management were done with just pen and paper. This method involves physically counting and recording the levels of inventory in notebooks. 

Inventory managers initially commended and trusted this method of inventory tracking because it was accurate in calculating the inventory level of small businesses with a small inventory. 

However, after some time, it was found that as the scope and size of the business inventory expanded, the pen-and-paper method of inventory tracking struggled with the following issues:

• Illegible handwriting: It was found that inventory managers with bad handwriting write things that are unreadable and indistinct, leading to miscalculations and mathematical mistakes. 

• Inaccuracy: One of the biggest disadvantages of pen and paper inventory tracking was the lack of recording data in real time. This is because the manager has to locate the notebook and pen, which wastes a lot of time. 

• Managing inventory: Another disadvantage of the pen-and-paper method of inventory tracking is the lack of analytical tools that help businesses analyze and provide detailed insights into the inventory level. 

Even if you are not involved in the inventory management department of any business, you must have seen the barcode technology of inventory tracking in retail stores. These codes are printed on the packaging of the goods that are scanned to track the level of inventory in the warehouse. This technology significantly enhances efficiency and accuracy. This technology not only reduces the possibility of manual errors but also speeds up the whole process. 

Furthermore, this technology also records and tracks the inventory level in real-time, increasing visibility and control over the stock. 

RFID, or Radio Frequency Identification Technology, is a scanner technology based on radio waves. This technology is used along with circular-shaped tags with a small chip inside that reads as well as writes data to record the data. 

Since the involvement of RFID technology in the inventory tracking and management systems of businesses has happened, the whole inventory calculation process has become easy and fast. Inventory managers just need to scan the RFID tag of the products to record the inclusion and exclusion of products. 

At last, it can be concluded that RFID technology has simplified and brought more accuracy to the inventory management system. 

Since only one aspect of warehouse management was considered with the previous methods, a new invention, inventory management software, was made. These are the systems or software that effectively help businesses control and manage their daily warehouse operations. These systems include procedures, policies, and organizing tools that allow businesses to correctly track all kinds of goods, such as raw materials and finished goods. 

Moreover, the following are the benefits of using advanced warehouse management systems: 

• Automation of Data Collection: This software uses digital tools to automatically collect data and process it with minimal assistance from humans. 

• Traceability: One of the most important abilities of a warehouse management system is the traceability of the inventory. With the use of serial, batch, and lot numbers that indicate the specific item and the group in which they were made, respectively, tracing them becomes easy.

• Increased Productivity:  By systemizing tasks like receiving, picking, packing, and shipping cargo, warehouse management systems reduce operational time by increasing productivity. 

• Cost Reduction: Warehouse management systems also reduce the cost of operations by optimizing inventory levels, enhancing labor productivity, and reducing waste and errors. 

• Security: These systems leverage the security levels of a business inventory by eliminating unauthorized access to crucial data, promoting accountability for the tasks performed, and establishing audit trails. 

• Customer Satisfaction: The ultimate benefit of utilizing a warehouse management system is the satisfaction of customers, as they are the ones who enjoy fast, accurate, and real-time visibility of their inventories. 

Furthermore, advanced warehouse management systems also incorporate features such as mobile applications that enable inventory managers to enjoy the aforementioned benefits on their smartphones. 

Explore the Evolution of Warehouse Inventory Tracking Methods

All the changes in warehouse inventory tracking methods are focused on simplifying the tracking process. From barcodes and RFID to WMS (Warehouse Management Systems), all the advancements in tracking methods improved the accuracy and traceability of inventory. 

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