The Importance of Database Software in Inventory Management
What is “Inventory Management” anyway, you might be thinking. Well, basically, it’s all about managing your inventory, namely sales, purchasing and payments. So how can Database Software help?
Database Software for inventory management can really help to reduce the amount of time spent, hence costs, in keeping track of your inventory and streamlining the business or organization.
Database Software in Inventory Management
Database Software is really a magical solution to all of your inventory management problems. Just imagine being able to:
- have complete stock management
- create invoices quickly and easily
- maintain a client database automatically (automatic is good!)
- keep a track on stock balance and manage all reordering
Database software is used for such diverse applications as airplane flight landings, funeral costs or even predicting how many new software programs need to be created
Invoices – should be quick and easy to do, whether for existing customers (already in your database) or new ones (increasing your database). Not only that, but every time you add a certain item to the invoice, your stock level will be automatically updated so you’ll always know what you’ve got left.
Customer database – is the lifeblood of any business, and all of the time you’ll be increasing your customer database effortlessly when you make out an invoice, and if you need to invoice an existing customer you don’t have the hassle of filling out all of the details again – told you it was magic.
Tracking Inventory - is easy with a database software inventory management system. You’ll be able to keep a record of how many are in stock, item codes, category, sub-category, even where they are in your warehouse if applicable, you can literally add as many fields as you need to suit your individual requirements.
Profitability – your accounts department will be able to create reports showing exactly which products are your most profitable, and which are really taking up valuable space without benefit. That way you’ll be able to replace any unpopular stock items with those which sell like the proverbial “hot cakes”.
Reordering – because your database software inventory management system automatically updates your stock every time you make a sale, you’ll have no problem knowing when it’s time to reorder certain items, in fact, many systems allow you to set an automatic reorder stock level, so once your stock gets down to that level an order will automatically be generated.
Multiple Use – your database will be available across your company network. Your sales reps in the field won’t have to telephone the office any more to see if there is a certain item still in stock, they’ll be able to check it out for themselves. You know how annoying it can be when 2 people sell the last of a single item in one day, that really can cause problems – all of those problems will magically disappear if you have a suitable database software inventory management system.
You can learn more about inventory managment by visiting The Association for Operations Management.
How Does Database Software Work?
Database Software has three main objectives, it is used to store, organize and to manage information. So how does it do it?
Table of Contents
Database Software utilizes tables, pretty similar to spreadsheets actually, in to store the required information. Each table is organized into rows and columns.
- Rows are the record with the information needed for a specific thing – names of clients for example.
- Columns (otherwise known as fields) are for the individual bits of information regarding each client – street name, zip code, state, telephone number etc.
Database Software vs. Spreadsheets
Database Software does have several advantages over spreadsheets, which is why many businesses or organizations simply couldn’t function effectively without them these days.
- Reports – database software can easily sort and then combine the information in the table and be used to generate reports and searches. You could easily find out, for example, all of your clients who live in a specific state (great for offers in a specific geographical area) or all of those clients who have bought from you within the last 3 months. Just a couple of examples, the more fields you have, the more specific information you can extract.
- Updating – if you need to update your information the database software will allow you to do it quickly and easily, unlike spreadsheets where each individual record would need to be updated.
- Linked tables – you can even link 2 or more tables with your database software, so you may have, for example, a separate database for each state, or for each type of product they bought, and then you can easily match the two together.
Types of Database Software
Database Software is basically available in three different types:
- Desktop database software is perfect for individuals or small businesses serving data from the desktop of a single computer.
- Server database software is used to store the information on a central computer, making the data available for other computers either by a computer network or via the internet. This is popular for larger businesses.
- Web enabled database sofware means that the data is stored locally but is made available on websites for internet access. Microsoft Access is an example of this, where you can store data which might not change very often with references, contact information etc.
Database Software really has taken so much “leg work” out of running a business or organization, and can be used for everything from keeping the local library organized to running a multi national corporation. Oh, and of course, desktop ones are great for keeping your Christmas card list up to date.