Continuous inventory: real-time stock management
Inventory management is a crucial strategic issue for all companies, whether industrial, commercial or logistics. Among existing methods, perpetual inventory stands out for its ability to provide a real-time view of stock levels. But what is perpetual inventory, how does it differ from intermittent inventory, and what are its advantages and disadvantages? This guide explores these questions and introduces you to the tools that can help you manage a perpetual inventory effectively.
What is a perpetual inventory?
Continuous stocktaking is a method of recording every inventory movement as it occurs: receipts, shipments, internal consumption, losses, etc. Unlike a periodic (or intermittent) inventory, which consists of a one-off check of stock on a given date, a perpetual inventory provides real-time information on the quantity and value of items in stock.
Modern inventory management systems ensure continuous traceability through computerized recording of movements. This enables you to monitor the status of your stock in real time, and to have an up-to-date view at all times.
Permanent vs. intermittent inventory
The main difference between perpetual and intermittent inventory lies in the frequency of updating. Whereas intermittent inventory is carried out periodically, often at the end of each month or at defined intervals, perpetual inventory records each transaction as it occurs.
Intermittent stocktaking has the advantage of being simpler to set up, but has major drawbacks: an incomplete and sometimes erroneous view of stocks during the period, a risk of errors when updating stock levels, and less responsive control in the face of shortages or surpluses. Permanent inventory, on the other hand, enables real-time management, but requires more advanced technological tools and continuous monitoring.
The benefits of perpetual inventory
- Real-time visibility:
Permanent inventory enables continuous monitoring of stock levels, providing a precise and immediate view of inventory status. This enables optimized management of stock-outs, surpluses and supply forecasts. - Reduced human error:
By automating the recording of movements, perpetual inventory limits input and omission errors, improving data reliability and reducing the risk of human error. - Time savings:
Perpetual inventory eliminates the need for time-consuming physical stocktaking. Updates are made on the fly, requiring only spot checks, freeing up time for other essential tasks. - Cost optimization:
Thanks to more precise inventory management, perpetual stocktaking helps to limit costs linked to surpluses (storage, maintenance) or shortages (lost sales, late deliveries). This fine-tuned management helps to increase profitability by reducing wastage. - Increased responsiveness:
Thanks to continuous inventory management, any discrepancies (loss, theft, delivery errors) can be detected immediately. This enables you to intervene quickly and correct problems before they affect your operations. - Supply chain improvement:
By having a precise and constant view of stock levels, perpetual inventory facilitates coordination with internal departments and suppliers. This optimizes product flows and improves resource planning.
What tools can help you create a permanent inventory?
To manage perpetual inventory efficiently, it's essential to have the right technological tools at your disposal. HeronTrack is one of the most effective solutions for digitizing inventory and equipment management. With HeronTrack, you benefit from :
- Instant visibility: Quick access to the status and location of all your equipment. No need to manually check each item, everything is centralized in a single application.
- Reduce errors: Every stock movement (issue, return, inspection) is recorded in real time, thanks to tools such as QR codes, GPS tags or mobile scanners, reducing human error and guaranteeing data reliability.
- Simplicity and time savings: Updates are carried out automatically, allowing you to streamline processes and devote your time to more strategic tasks.
- Easier compliance monitoring: The application alerts you to inspection or renewal deadlines for sensitive equipment such as PPE, ensuring optimum safety management.
By combining HeronTrack with perpetual inventory, you can turn your inventory management into a performance driver, while ensuring equipment compliance and safety.
The disadvantages of perpetual inventory
Although perpetual inventory offers many advantages, it is not without its challenges. Its main drawback is the cost and complexity of its initial implementation. It requires advanced technological tools and constant monitoring, which can represent a significant investment for some companies. However, with tool geolocation solutions such as HeronTrack, implementation becomes simpler and more accessible, even for small and medium-sized businesses.
Conclusion
Perpetual inventory is a method of inventory management that offers a multitude of benefits, including real-time visibility, error reduction and cost optimization. Although it requires an initial investment in terms of technology and resources, the benefits far outweigh the drawbacks, thanks in particular to tools like HeronTrack that simplify and automate the process.
Whether you need to keep track of your tools, site equipment or PPE, perpetual inventory, supported by effective technological solutions, is an excellent way to improve inventory management and guarantee the safety and profitability of your operations.
