Keeping track of inventory is a challenge, and to meet this challenge, most businesses use dedicated inventory management software. However, inventory management software is expensive, and if you want to save on inventory tracking, you’ve got to look for an alternative. Thankfully, Excel offers an inexpensive alternative with endless columns that allow effective data sorting and categorization. Creating an Excel barcode inventory system is incredibly easy as well.
However, before you learn how to create an excel barcode inventory system, you’ve got to consider certain factors. Read on to gain greater insight into what those factors are.
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The product Categories and Inventory Information
In an Excel spreadsheet, product categories are best presented as columns, as it will allow you to track the performances of individual products based on their respective categories. Apart from the product categories, information like every product’s barcode, SKU, quantity in stock, location, value, and reorder point also needs to be included. It’s vital to capture the details correctly before beginning the inventory tracking process.
Formulas for Reducing Stress Associated with Number Crunching
Excel offers several simple formulas to use for calculating information automatically. At first, the formulas tend to seem more complex than they really are. However, once you start using these formulas, you’ll get used to them after a while.
Formula 1: SUM
You can use the SUM function to add figures you enter into multiple cells. For instance, you can use the SUM function for automatically updating the amount of money you’ve generated by completing math based on formulas you enter per line to build a running sales figure. This eliminates the need to double-check each line using a calculator.
This is quite useful for calculating automatic value totals for your inventory products. But remember that if you’ve got 200 lines, you’ll have to do it for each one.
Formula 2: SORT
Sort allows you to sort your inventory by color or number size, allowing you to swiftly and easily go through all the products based on profitability, sales, or remaining stock. The sort function will, predictably, be inaccurate if any data is input incorrectly.
When you input the quantity of products you sold using a subtraction formula (=B1-B2), it will deduct that number automatically from the current stock, which you can then filter by stock to determine which items you need. This also eliminates the problem of not ordering things based on your lack of knowledge regarding the items to order.
Formula 3: RANK
You can use the Rank function to sort goods by sales volume, inventory volume, or the quantity of products you’ve received. You can use it to organize your inventory based on either specification as it makes sense to rank high-sale products that you need to refill on the top.
Sort and Rank are different as Sort puts your information in order whenever you instruct Excel to by selecting “Sort,” whereas Rank does it automatically. It doesn’t modify the order automatically, so your #1 might still remain in the center of the page.
Adding new SKUs makes the Inventory Tracking Process more Time-Consuming
Updating inventory spreadsheets takes time, as it involves several processes. Typically, it flows like this:
Input data – Update data – Export, import, merge sheets – Review data – Reconcile data
The update process may even be broken down into more processes, and in such a scenario, the inventory management professional must be thoroughly trained in Excel barcode inventory system functions. Also, when new SKUs are added to the inventory list, it makes things more time-consuming. So, when it comes to managing an Excel inventory control template, you need a sizeable team, as a small team is likely to struggle with the demands.
Excel Lacks Real-time Reporting and Automation
Features in Excel such as conditional formatting, pivot tables, and formulas can automate calculations and tasks to an extent. However, when you need to do one or more of the following tasks, Excel is likely to struggle with automation:
- Shifting distribution points for better order fulfillment
- Checking on reorder levels in the event of depleted stocks
- Updating inventory counts across numerous sales channels
Excel’s limitations boil down to its lack of sophistication in terms of tracking information without manually uploading data. Spreadsheets are also not very effective in terms of real-time reporting of inventory changes. In the long run, this can prevent a business from capitalizing on marketplace changes and making timely decisions. Despite Excel’s affordability, it has plenty of inefficiencies that may lead to a situation where your business is forever playing catch-up with its competitors.
Manual Error Possibilities
If you use Excel for inventory management, you’ll have to enter a lot of data manually, which may lead to errors. Manual errors are likely to impact the bottom line, and even if you hire an experienced data entry specialist, there’s still no guarantee that mistakes won’t be made
Wrap up
However, if you choose Excel to manage your inventory, this is a cost you’ll have to be ready to pay. The cost may especially be significant for businesses with multichannel structures.
