Frequently Asked Questions
How does a perpetual inventory system work?
The perpetual inventory method continually updates your inventory items by recording the cost of goods sold, received, moved, and more. This real-time inventory accounting closely keeps track of inventory around the clock, and delivers the most precise, up-to-date information possible. While perpetual inventory control requires a bit more hardware (like RFID and barcode scanners), the upside is it offers the most reliable record-keeping across all channels.
Why do companies use perpetual inventory systems?
A perpetual inventory control system is best suited for brands with complex inventory operations and multiple sales channels. With perpetual inventory solutions, inventory reports can be accessed online at any time, which makes it easier to manage inventory levels and the cashflow needed to cover future COGS. And due in large part to their built-in automations, perpetual systems have now become the go-to platform for ecommerce optimization.
What is an example of a perpetual inventory system?
When you utilize perpetual inventory, the point of sale system will automatically make changes to your inventory levels. This means you can access your inventory reports online anytime, making it much simpler and more streamlined to manage or purchase inventory. Grocery stores often use a perpetual inventory strategy; each time a product barcode is scanned and purchased, the system will automatically update the stock counts in that store’s database.