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What Are The Limitations Of Inventory System?

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The main limitations or disadvantages of an inventory system are the costs required in setting an inventory system up, and the complexity of using and maintaining an inventory system in an effective way.

  • Limitation one - cost

The technology and software required by an inventory system can be expensive to purchase, install and use. For example, the software used to track what products have been bought, sold and delivered in very technical, and therefore very expensive. In addition, the technology used in conjunction with an inventory system, such as tracking devices in delivery vehicles or barcode scanners, are also expensive. This means that a good quality inventory system is usually out of reach of small, new or independent businesses.

  • Limitation two - complexity

Due to the technical nature of the software and technology used in an inventory system, it can be difficult to thoroughly educate all members of staff on how to use the inventory system in an effective way. In addition, the education process can take days or even weeks, meaning that business can come to a standstill during this time. As a result, although inventory systems can be incredibly useful, they can also be difficult to implement.

  • What is an inventory system?

An inventory system is a piece of software used by a company or business to track the business's property. For example, the inventory system could be installed on the tills at a supermarket to keep a record of every product scanned and sold - as a result, the supermarket would be able to see which products are selling well, which products are not selling well, and whether or not they need to buy further stock.

Technology such as barcode readers and tracking devices are also included under the term "inventory system", as they are used to inform the software of data such as the number of products sold.

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