Writing inventory data by hand on paper was replaced by scanning products and inputting information into a computer by hand. Once barcodes and inventory management programs started spreading through grocery stores, inventory management by hand became less practical. As computers became more common and affordable, this hurdle was overcome. One of the biggest hurdles in selling readers and barcodes to retailers was the fact that they didn't have a place to store the information they scanned.
It also allowed the first versions of inventory management software to be put into place. This further pushed down the cost of barcodes and readers. In the early 1980s, personal computers began to be popular. There was now one primary barcode for grocers and other retailers to buy one type of reader for. This helped drive down costs for inventory management because retailers in the United States and Canada didn't have to purchase multiple barcode readers to scan competing barcodes.
The Universal Product Code (UPC) was adopted by the grocery industry in April 1973 as the standard barcode for all grocers, though it was not introduced at retailing locations until 1974.
Stock cover: the number of days left before a stockout if no reorder is made.
When a product is in a warehouse or store, it can be tracked via its barcode and/or other tracking criteria, such as serial number, lot number or revision number. This helps companies avoid running out of products or tying up too much capital in inventory. Should inventory reach a specific threshold, a company's inventory management system can be programmed to tell managers to reorder that product. Inventory management software is made up of several key components working together to create a cohesive inventory of many organization's systems.
6 Disadvantages of ERP inventory management software.5 Advantages of ERP inventory management software.