Inventory management systems are the rule for such enterprises, but smaller businesses and vendors use them, too. The systems ensure customers always have enough of what they want and balance that goal against a retailer's financial need to maintain as little stock as possible. Mismanaged inventory means disappointed customers, too much cash tied up in warehouses and slower sales. Factors such as quicker production cycles, a proliferation of products, multi-national production contracts and the nature of the big-box store make them a necessity.
Modern inventory management systems must have the ability to track sales and available inventory, communicate with suppliers in near real-time and receive and incorporate other data, such as seasonal demand. They also must be flexible, allowing for a merchant's intuition. And, they must tell a storeowner when it's time to reorder and how much to purchase.
An inventory control system is a process for managing and locating objects or materials
Modern inventory control systems often rely upon barcodes and RFID tags to provide automatic identification of inventory objects. In an academic study performed at Wal-Mart, RFID reduced Out of Stocks by 30 percent for products selling between 0.1 and 15 units a day. Inventory objects could include any kind of physical asset: merchandise, consumables, fixed assets, circulating tools, library books, or capital equipment. To record an inventory transaction, the system uses a barcode scanner or RFID reader to automatically identify the inventory object, and then collects additional information from the operators via fixed terminals (workstations), or mobile computers.\
It also Applies to lead time management. Reduce liabilities, and Supply and demand.
Some advantages are:
First of all, Wal- Mart contains low priced goods. As a result, people can save their money because they can find many items cheaper in Wal-Mart than other supermarkets, especially; the basic needs for families such a sugar, soda, vegetables and fruit. For example, the box of Coca-Cola in Wal-Mart is 6.00 dollars but in other supermarkets are almost 7.00 dollars. In addition, because it is cheap, Wal-Mart is good for a big family. People can buy more quantities of their basic’s needs
Second, Wal-Mart is convenient. People can find everything for their needs in Wal-Mart. Actually, American’s can find most of their basic needs such as milk, bread, fruit and vegetables or their secondary needs such as perfumes and watches in Wal-Mart because the branches of Wal-Mart are usually big. Also, they can find Wal-Mart in many cities and towns in America. That means Wal-Mart is available in big cities like New York, middle cities like Kansas City and small cities like Carbondale. As a result, people when move to another city because their change their work or their university, they can find big supermarket that contains their needs.
Third, Wal-Mart has good services. For example, people can return any item that they bought. So if someone bought a vacuum and it was not appropriate for him or for her, he or she can return it. Also, Wal-Mart has enough parking.
In conclusion, because Wal-Mart is convenient, has low prices and has good services, people should be happy when Wal-Mart decides to open more branches through the World,Walmartt does have a great beneficial advantage in business.
References:
http://communication.howstuffworks.com/how-inventory-management-systems-work.htm
http://en.wikipedia.org/wiki/Inventory_control_system
http://www.inventorymanagementreview.org/2006/04/walmart_increas.html
http://www.docstoc.com/docs/9517882/Wal-Mart-Database
