What are the Benefits of a Computerized Inventory System?


Whether managing a few hundred items in one location or millions around the globe, a computerized inventory system has numerous benefits.


  • Implementing a computerized inventory system requires a number of considerations. The buyer must consider ease of implementation and use, vendor reputation, system expansion, training, vendor support and budget constraints.

Financial benefits

  • According to Donald Reimer and Ravi Nayar in Corporate Detroit, "Industry averages suggest that a 20 percent reduction in inventory is achievable with a computerized inventory control system."

Other benefits

  • A computerized inventory system helps management control the inventories, in turn lowering overall operating costs in the areas of labor, facilities and logistics. A computerized inventory system also improves customer-service metrics and fulfillment rates.

Best practices

  • To fully realize these benefits the company must institute best practices in planning and setup, collaboration, inbound merchandise and inventory management and fulfillment.

Cost concerns

  • Reimer and Nayar also state, "The cost of implementing the system goes far beyond the cost of the software package itself. The effort and time could be as high as 5 to 10 times the cost of the package. But the benefits of the system would still far outweigh the costs for a typical company."

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