Inventory systems, used by businesses, include a tag system, point-of-sale system, bar code scanning, and radio frequency identification. Businesses choose one of these inventory systems, based upon the size of inventory and the amount of the budget.
A tag system is used by businesses with smaller amounts of inventory. Each item of inventory is tagged. The tag is removed and collected by the salesperson when the item is sold. Tags are then counted to prepare sales reports.
A point-of-sale system scans items at the cash register as they are sold. A computerized system, this software generates reports for analysis. Inventory records managed with a point-of-sale system are always current based upon sales, since calculations do not have to be done manually.
Inventory packaged with a bar code can be scanned with a handheld unit. Handheld bar code readers enter information about inventory into a software program that generates reports. Bar code scanning is mobile and offers larger businesses a convenient option for tracking inventory.
Inventory tagged for radio frequency identification communicate with a receiver. Items do not have to be individually scanned and can remain on shelves. This type of inventory system makes collecting inventory information a quick process and works well for larger businesses.