Any business needs to keep a good eye on their assets as well as inventories. The good news is that there are a lot of systems in the market that can help business owners achieve this task and it might be helpful to know what these terms are to keep you abreast with the system.
Assets are the items that all companies use in their daily operation. These assets include furniture, devices and tools that make different business processes possible. These items can remain on site or can be taken to different locations and that they belong to the company and are permanent items used by the company.
Inventory, on the other hand, are objects that are sold by a company or they can be things that are used in the production line. They are also temporary things in the company.
It is important for a business owner to understand the principles behind tracking the assets and inventory to improve the efficiency of the different business processes that they have. For instance, assets need to have its own system that will keep track of its maintenance as well as depreciation while inventory needs a system that will keep track of the release and acquisition of stocks.
The relevance of being able to keep track of the asset and inventory is important not only to the success of the company or a business but it is also important in other aspects of the company. In fact, we cannot escape the fact that the world is getting smaller by the minute and that there are a lot of companies have considered going global thus our communication is still part of the working of a highly globalized economy.
For this reason, companies are now using technologies that can easily track newly purchased raw materials to speed up the production to get their product to the market easily. All things are monitored from the production line to the performance of the employees. A good example is the use of the fingerprints by employees to sign and out their daily time record. Even their breaks, sick days and rate of pay are also recorded and tabulated easily in the system.
On the other hand, while driving home, you might be unaware but there are a lot of cameras and traffic sensors that are installed all over which also takes use of this tracking software. Even GPS is one of them. If you buy stuffs at the grocery, you are also involved in using a tracking device. You take part of this technology in your favorite stores, restaurants and even when you swipe your credit card to buy something, you already gave away your information. The thing is that this tracking system is everywhere.
Although this may scare you, most companies use it to manage their business processes. Several technologies that keep track of the inventory include Geographic Information Systems (GIS) that collects, stores, analyze as well as document large information. Aside from that, we also have the Global Positioning System (GPS) which is connected to the many satellites orbiting the earth that used by cellphone companies for outdoor positioning.
There is also the Radio Frequency Identification (RFID) which uses small microchips that are attached to just about anything that transmit radio waves for identification and verification. These waves are detected by Wireless Local Area Network.
Now, the use of barcodes by small to medium business enterprises is the most common ways to use the Assets, Stock and Inventory software. The software needs to be bought before you can use it in your system. Basically, a programmer types in all items that are needed to be tracked by the data base. All information are stored in the barcode.
Then the barcode scanner will get the data embedded on the barcode using the photo sensors and translate these images into electrical impulses. The electrical impulses are then matched to the information in the database. The information in the database are linked to the bookkeeping system of the company. The depreciation of the different assts and maintenance are also included. In fact, everything is important especially in the preparation of the financial statement as well as the balance sheet of the company.
A lot of businesses have benefited greatly on the advances of this particular software when it comes to tracking their inventory and controlling their stocks. Everything is simplified and most businesses run smoothly and efficiently this time. Managers can oversee other important concerns in the company unlike before. All these success on different companies also affect the consumers.
It wont be surprising that this technology can be domesticated thus don’t be surprised that one day, you reach into your fridge for a cold soda and a voice tells you that you already run out of it.