Every business that deals in physical products needs an effective inventory management system, and in the absence of an effective system, it might be difficult to keep track of the quantities of inventory, which may result in stockouts, overstocking, and other costly missteps. Hence, such businesses should have a database specifically designed for inventory management. The use of such a database can help speed up the process and provide information about the number of items and their movement in real time.
Inventory Management Database
An inventory management database is an essential tool businesses use to track their inventory levels, stock movements, and other related data. By utilizing this database, companies can easily monitor their inventory levels, track the movement of goods, and ensure they always have the right amount of stock.
This database is a crucial component of any successful business, as it allows companies to make informed decisions about their inventory and ensure that they are always prepared to meet customer demand. With the help of an inventory management database, businesses can streamline their operations, reduce costs, and improve their overall efficiency.
What Is the Importance of an Inventory Management Database?
Any company dealing with stock, whether raw materials, parts, or finished goods, should have an inventory management database. This is an essential tool for any company that does business with stocks.
Inventory management’s primary purpose is to ensure enough stock to meet demand without creating overstock or excess inventory. It is important for the profitability and efficiency of a business to keep control of its inventory. With an inventory management system, a business can have an up-to-date and accurate overview of its stock levels for every product, so it can meet customer demand without the risk of overstocking, which incurs unnecessary costs and reduces profits.
Key Features of an Inventory Management Database
The key features of an inventory management database can be categorized into several areas, such as:
#1. Inventory Control
- Tracking products in stock, categorizing them by type, location, and SKU (serial number)
- Generating real-time reports, searching, filtering, and viewing products
#2. Inventory Management
- Handling data from other parts of the system, such as inventory control.
- Managing business processes before stock arrives at a warehouse
- Integrating with other software or enterprise resource planning (ERP) platforms
- Centralizing warehouse functions, tracking stock levels, product history, and other product specifications
- Offering vendor-managed inventory (VMI) solutions for long-term business relationships
- Providing automatic shortage reports and alerts for quick response to inventory issues
#3. Inventory Tracking
- Automating manual tasks and eliminating manual processes
- Reducing stock-outs and overstocks by tracking inventory in real-time
- Integrating with third-party logistics (3PL) providers and mobile barcode scanning devices for better inventory accuracy, speed, and stock replenishment
#4. Inventory Barcoding
- Integrating barcode software to reduce data entry errors and automate business functions
- Collecting, storing, and organizing digital inventory data for better inventory operations
#5. Integrations and Scalability
- Providing an easy-to-use interface for minimal training and support
- Allowing administrators to easily add software modules with minimal configuration
- Integrating with hardware (barcode or RFID readers, computer vision cameras)
Benefits of Having an Inventory Management Database
The benefits of using a strong inventory management database include the following:
- Saving time, cost savings, and customer satisfaction.
- Better inventory accuracy
- Reduced risk of overselling
- Avoiding stockouts and excess stock
- Greater insights and more productivity
- Better terms with vendors and suppliers
- Increased profits, a more organized warehouse
Inventory Management Database Software
Inventory management software is essential for businesses to keep track of their stock, orders, sales, and more. It helps streamline processes, reduce errors, and optimize inventory levels. Numerous inventory management software options are available, each with unique features, integrations, and pricing.
#1. Orderhive
Its pros include:
- Affordable way to start selling across multiple sales channels
- Automated real-time updates, barcode scanning, and inventory reports
- Easy-to-use interface for bundling products for sale or setting up a dropshipping business.
Its cons include:
- May not be suitable for businesses with unique inventory management needs
#2. Zoho Inventory
The pros are:
- Free for small businesses
- Comes with e-commerce support and warehouse management
- Offers dozens of integrations to expand your business’s footprint
The cons are:
- May not be suitable for businesses with specific inventory management requirements
#3. Ordoro
Pros include:
- Comprehensive feature list for inventory tracking, warehousing, production, supply chain, and order fulfillment
- Suitable for various types of businesses
Cons include:
- May not be the best fit for every business
#4. inFlow Inventory
Pros include:
- Offers excellent inventory tracking and stock management solutions
- Top pick for businesses on a budget
Cons include:
- Free option may not include all the features and integrations needed for some businesses
#5. Upserve
Pros:
- Provides excellent inventory tracking and stock management solutions
- Suitable for various types of businesses
Cons:
- May not be the best fit for every business
#6. Cin7
Pros:
- Offers excellent inventory tracking and stock management solutions
- Suitable for various types of businesses
Cons:
- May not be the best fit for every business
#7. Microsoft Excel
Pros:
- Free and accessible to many users
- Can track inventory levels, basic order management, and multiple warehouse management
Cons:
- Lacks some advanced features and integrations of dedicated inventory management software
Inventory Management Database Design
The steps to creating a inventory management database design might vary based on the particular softwars you design with. However, there are general steps you can follow to design a database schema for managing suppliers, salespersons, items, item stock, purchase orders, and customer orders.
- Create the Inventory Database: First your create the inventory database
- Create Category and Product Category Tables: Design the Category Table and Product Category Table to store product categories and their mappings.
- Create Order Table: Design the Order Table to manage inventory orders, which can be associated with either suppliers or customers.
- Create an Order Item Table: Design the Order Item Table to manage the order items purchased by customers.
- Create a Transaction Table: Design the transaction table to track order payments made by buyers and for bookkeeping. This table can also be used to record partial or full refunds of orders.
Inventory Management Database Design Example
An inventory management database design typically consists of four main elements: products, purchases, orders, and suppliers. Each element must be tracked based on its location, SKU, and quantity. The current inventory, or products on hand, is updated by tracking incoming shipments and outgoing orders.
Here’s an example of an inventory management database design using MySQL:
#1. Products: This table stores information about the products in the inventory.
product_id (Primary Key)
- sku
- name
- description
- price
- location
- quantity
- category_id (Foreign Key)
#2. Suppliers: This table stores information about the suppliers.
- supplier_id (Primary Key)
- name
- contact_info
#3. Brands: This table stores information about the brands of the products.
- brand_id (Primary Key)
- name
#4. Categories: This table stores information about the categories of the products.
- category_id (Primary Key)
- name
#5. Purchases: This table stores information about the purchases made by the suppliers.
- purchase_id (Primary Key)
- supplier_id (Foreign Key)
- product_id (Foreign Key)
- sku
- quantity
- price
- purchase_date
#6. Orders: This table stores information about the orders made by the customers.
- order_id (Primary Key)
- customer_id (Foreign Key)
- product_id (Foreign Key)
- sku
- quantity
- price
- order_date
#7. Customer_Orders: This table stores information about the relationship between orders and customers.
- order_id (Foreign Key)
- customer_id (Foreign Key)
Computer Inventory Management Database Software
Computer inventory management database software is essential for businesses to track, monitor, and analyze their devices to ensure they are updated and secure. Manual tracking of hardware and software inventory can be challenging, which is why automated tools are necessary.
Computer inventory management is a strategy that records a list of computers owned by a business and identifies the attributes of each, such as make, model, and operating system version. The asset inventory is the central document store for inventory management and must be kept constantly updated. Software inventories are also considered part of computer inventory management.
Computer inventory management helps companies schedule updates and patches and discover security concerns from unpatched systems and applications. Tracking, monitoring, and updating enterprise computers to fix vulnerabilities leaves them vulnerable to cyberattacks. Computer inventory management can help organizations identify ways to improve network security by providing facts about computer installations.
Computer inventory management database software is designed to centralize, automate, and streamline many of the tasks required to list, track, and configure patches for devices across a network. It can detect devices on your network, analyze them and their configurations, and generate reports to communicate what it finds clearly.
Computer inventory management database software tracks applications on these devices, including third-party apps that need patches. As organization fixes become available, it can push them to appropriate applications. Computer inventory management database software prioritizes chores. PC inventory tools should flag missing important patches for systems and applications. Network administrators can safeguard PCs from future intrusions by addressing these vulnerabilities and using this info.
Top Computer Inventory Management Database Software
#1. SolarWinds Server & Application Monitor
This is a top pick for computer inventory management software because it identifies all computers on a network and scans each device.
- The tool identifies all of the software running on each computer and creates application dependency maps.
- It watches over server resource usage, noting which applications need which services and spotting when resources run short.
- This software also thoroughly documents, tracks, and guards computer inventory.
#2. SolarWinds Patch Manager
This includes a computerized inventory management system capable of providing flexibility and scalability to the patching process for physical and virtual Windows desktops and servers with prebuilt, tested patches.
- Patch Manager can automatically deploy and manage third-party applications and Microsoft patches across tens of thousands of servers and workstations from a centralized dashboard.
- Additionally, its web-based console is built to seamlessly integrate with other SolarWinds tools, so users can gain insights into the overall health and what needs to be updated or addressed at a glance.
- Patch Manager can help users pass audits by allowing them to determine the status of patches and show auditors their systems are patched and compliant.
Best Database for Inventory Management
Several options are available if you are looking for which database is best to use for inventory management. They include the following:
#1. H2
If you are familiar with programming in Java, you could use H2. It is a lightweight, open-source database that can be used for local software installations.
#2. SQLite
SQLite is a popular choice for local databases. It is a self-contained, serverless database that is easy to set up and use.
#3. MySQL
MySQL is a popular open-source database that is widely used for web applications. It is well-suited for server-client mode and can handle concurrent access by multiple users.
#4. PostgreSQL
PostgreSQL is another open-source database that is known for its reliability and scalability. It is well-suited for server-client mode and can handle large amounts of data and concurrent access.
Factors to Consider When Choosing a Database
- Size of your database: If you are creating a small inventory management system, you may not need a large database.
- Local vs server-client mode: Some databases are more suited for local use, while others are better for server-client mode.
- Concurrent access: If multiple users need to access the database simultaneously, you will need to ensure that the database can handle this.
Can You Use SQL for Inventory Management?
Yes, SQL can be used for inventory management. SQL Inventory Manager is a tool that captures core information about the entire inventory of SQL Servers across the environment. It offers an organized web-based dashboard that allows users to view all SQL Servers, know what they have, where they are, and who owns them.
To create an inventory management system using SQL, the following steps can be taken:
- Design a database with tables for products, purchases, orders, and suppliers.
- Track each element based on its location, SKU, and quantity.
- Update current inventory by tracking incoming shipments and outgoing orders.
- Set order alerts to trigger when inventory levels fall below custom-defined minimum levels.
- Use SQL queries to retrieve and manipulate data from the database.
- Use PHP or another programming language to create a web-based application that interacts with the database.
What Are the 4 Types of Inventory Management?
There are four primary classifications of inventory management:
- Raw materials: These are the materials that a company uses to create and finish products. Once the product is completed, the raw materials are typically unrecognizable from their original form.
- Work-in-progress (WIP) inventory: This refers to items in production and includes raw materials or components, labour, overhead, and even packing materials.
- Finished goods: These are items that are ready to sell.
- Maintenance, repair, and overhaul (MRO) goods: MRO is inventory, often in the form of supplies, that supports making a product or maintaining a business.
Can Excel Manage Inventory?
Yes, Excel can manage inventory, but it has some limitations. Excel inventory management can help you better organize and track inventory and stock items, giving you a better idea of what you have and need.
The basic capabilities of Excel for inventory management include the following:
- The ability to track inventory levels
- Monitor stock movements
- Calculate inventory total values
- Create customized reports
- Automate inventory management tasks.
The limitations of using Excel for inventory control include:
- The risk of errors due to manual data entry
- Limited scalability for large stock inventories
- The need for technical skills to create advanced functions and macros.
Excel inventory management requires time, and it requires more hands-on maintenance than inventory management software, but you can make it work by implementing some basic best practices.
Tips on Using Excel Inventory Management
- Update the Excel document immediately to prevent issues, as Excel is not a real-time inventory management solution.
- Create a basic template for your Excel inventory that includes the product number, product name, item description, item price, item cost or value, item stock, quantity to reorder, and quantity sold.
- Use Excel formulas to automatically calculate information for total sales, and total profit, and organize your inventory based on products that sell the most using a few simple formulas.
- Review data and outcomes to inform your decision-making and forecast outcomes. Use the information to aid you in the process.
- Upgrade to a SaaS solution as needed. Excel can be an excellent bridge between hand inventory and inventory management software. However, as your business grows, there will come a day when Excel is no longer feasible as an inventory management tool.
Can I Use Google Sheets for Inventory Management?
Yes, you can use Google Sheets for inventory management. Several ways exist, including using templates, creating your own inventory management system, or building an app with AppSheet.
Here are some steps you can take to create inventory management on Google Sheets:
- Use a Google Sheets inventory template: This template is fully customizable and covers everything from small shops to warehouses. It includes formulas to help you keep track of inventory values per item and when you need to reorder stock.
- Customize the template: The Google Sheets inventory template contains several columns. If you don’t need all of the data in your copy, you can hide the columns you don’t want to use. You can do this by right-clicking the column name and selecting “Hide column”. You can also add more columns if you need to track additional information.
- Create your own inventory management system: This involves creating a Google Form to collect data and a Google Sheet to analyze and store the data. You can then use a Google Script to update the form with the latest inventory status. This solution is simple; you can use it on your mobile and check the inventory on the go.
- Build an inventory management app with AppSheet: Google Cloud’s AppSheet lets you create apps without writing a line of code. You can build an inventory management application with AppSheet in a few steps. The app will include features such as product name, description, quantity, and price. You can also add features such as barcode scanning and image capture.
- BEST APPS FOR INVENTORY MANAGEMENT IN 2023
- CUSTOMER DATABASE: How To Create One & Software Solution
- SIMPLE INVENTORY MANAGEMENT: System, Services, Software and More
- What Is an Intranet: Definition, Types, Features and Uses
References
