Integrated Barcoding Technology - Assignment Example

Plan for a Low-Cost Automated Inventory System Inventory Management Systems CIS200 11,01 Introduction An automated e-procurement system like an automatic inventory model is suitable for small, medium and large sized entrepreneurial ventures. Such systems have numerous benefits like elimination of paperwork, reduced inventory levels, shortened time to deliver items, shortened time to audit financial, enhanced efficiency of both staff and tracking of customers. Besides, recent modern inventory systems take into account other features like business intelligence functionalities, electronic invoicing, budget tracking, email bids, and routing of purchase requisition before approval through emailing system. This system will deliver big savings on time and resources over the manual system. Customers would be able to order their desired clothing outfits without necessarily visiting the clothing store. Besides, the store would be able to identify urgent orders and make appropriate schedules meet the demands. Describe all the necessary equipment Integrated Barcoding Technology Automatic inventory systems work well with software for capturing information. The system eliminates manual entry of information. Barcoding enables the linkage between a scanner and the program of an inventory system for automatic tracking and management of store stock. Barcoding that captures information for every clothing item received (Anthony, 2005; Alan, 2005). Barcoding enables faster retrieval of clothing information using either UPC or SKU when the clothing store staff member scans the item. It helps in tracking quantity of specific items sold. Besides, this system makes it possible to know the financial returns from specific projects, hence helps in the restocking of clothing. Tracking software Systems, which assist in tracking how clothing comes in and goes out of the store, is an essential asset. Constant monitoring and watching these events helps restock or increase the volume of a particular line of clothing (Manual/Automated Inventory Management, 2015). Therefore, accurate tracking of such information will eradicate the possibilities of having small volumes of stocks that sells well. Although small stores keep low stock, it is possible that unexpected boom in sales may occur. It eradicates the possibilities of catching the store personnel off-guard. Such measures justify the need to install an ideal system that quickly detects and indicates the need to restock additional supplies when the inventory falls below a critical level. Handheld IntelliTrack Computer System This tool is appropriate for small sized entrepreneurial ventures dealing with clothing. The hand-held device connects to the inventory system and is used for capturing and entering inventory sales when received. It allows stores personnel to walk around the shop while obtaining and entering clothing items in the inventory records and database (Manual/Automated Inventory Management, 2015). It is convenient and eradicates the laborious and slow paperwork of recording and quantifying the sales inventory. Besides, this tool assists in registering of inventories transacted when a business closes because one can make modifications or generate reports when the day ends. iMagic Inventory Tool This software is suitable for small sized businesses. The tool makes it possible to automatically re-order clothing. The store personnel will have to set the critical limits of the store stocks and give commands to effect that function. In such a case, the store staff needs not worry about stock volumes because the inventory system has an automatic function that communicates with the suppliers. There is a possibility that the shop may have several clothing outfits procured from different providers. These requires different emails, and this tool will generate emails to the target suppliers who should respond appropriately by sending supplies within the agreed timeline (Megan, 1997). Database or Spreadsheet programs Low-cost businesses need databases that would assist in tracking the inventories. Although it may be laborious, OpenOffice Calc is a free program and available for starting business ventures. The database helps in manual tracking of clothing items and their quantities (Manual/Automated Inventory Management, 2015). Financial implications in the creation of the system Installation of this system will require the purchase of essential software and hardware that supports the automated inventory system. A low-cost system for small sized ventures will need local cheap items like label supplies captured by the bar coding system, electrical accessories, cables, spares, service contracts, and sales tax. Besides, a costumed programming and resource interface will work effectively for a small business venture (Anthony, 2005). Financial analysis helps business ventures when comparing costs incurred to the expected savings from the installing and using the system. Investments must incur costs with the expectation of gaining returns after a short period. Returns of principal and dividends come from income improvements and other forms of cost savings strategies. It is not different from automated inventory system (Manual/Automated Inventory Management, 2015). Such systems would incur the cost of installation and purchase of essential items. However, after a period, previous prices would decline sharply, and the investment would commence giving returns. Projected income statement Financial documents prepared on the accrual basis are appropriate for low-cost projects. It enables recording of expenses incurred from the costs. This report also records non-cash expense like depreciation of the assets of the project. A project income statement records savings from labor, and the inventory cost avoided every year the system is operational. During the first year, the store would not save on labor cost as it will continue using the manual system while installing and evaluating the model. That period would involve incurring costs on the purchase of the system and essential supplies (Anthony, 2005; Alan, 2005). Besides, contracting services and installation costs of the system would be needed for the project as stated in the cash flow statement for the project (Table 1). Service supplies and service contracts would be required for the first four years before the system becomes free from incurring costs. However, during the second year and subsequent years the income from inventory holding cost saving and inventory, financial savings would leverage the financial burden for the clothing store (Table 1). The payback period helps in evaluating the projected duration that the investment would support itself and give returns to the business venture. This low cost automated inventory system would provide returns after 3.8 years (Table 2). Table 1: Proposed financial statement for the project Cash flow statement for the proposed project Year 1 2 3 4 5 Total 1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half 2nd half System cost (8000) 0 0 0 0 0 0 0 0 0 (8000) Service contract (1200) (1200) (250) (250) (250) (250) (250) 0 0 0 (3650) Suppliers (200) (200) (200) (200) (200) (200) (200) 0 0 0 (1400) Installation cost (3500) 0 0 0 0 0 0 0 0 0 (3500) Labour savings 0 0 3000 4800 4800 4800 4800 4800 4800 4800 36600 Inventory holding cost saving 0 0 2500 3500 3500 3500 3500 3500 3500 3500 27000 Inventory financial saving 0 0 1500 2500 2500 2500 2500 2500 2500 2500 19000 Income 0 0 (1100) (6500) (6500) (6500) (6500) (6500) (6500) (6500) (46600) Net cash flow (9400) (1400) 5450 3850 3850 3850 3850 4300 4300 4300 52550 Table 2: Return on Investment (Payback Period) Payback period Year 1 2 3 4 5 Initial cash outflow 14300 0 0 0 0 0 0 0 0 0 Net cash savings 0 0 5450 3850 3850 3850 3850 4300 4300 4300 Payback period 3.8 years Description of the ongoing maintenance of the system Software maintenance Maintenance would involve assessing how software installed and interfaced with the system works. Periodical evaluation and determination of how data were capturing was taking place, and the duration, it made to transmit and communicate essential commands, would be necessary for its maintenance. Determining the speed it takes to acquire, transmit, and record the captured information related to clothing store is critical to ensure efficiency of the system (Manual/Automated Inventory Management, 2015). Hardware maintenance Maintaining of the system hardware is the most important factor, other accessories like electrical appliances, cables, and peripherals and other interfaces assessed how they work. These must always be in a cold and dry environment. Cable with proper insulation and connected to a backup power system will keep the system running when there is no power supply to enable store personnel finalize their transactions. Database maintenance Inventory system must have a database for storing the store information. The database support is essential in ensuring it functions well, it is up to date, and that the information captured can be retrieved and modified if need be. . References Megan, S. (1997). Working Smart. Maximize the Payoff from Information Technology. Retrieved January 11, 2015, from CIO Magazine, www.cio.com/archive/090197/smart.html Manual or Automated Inventory Management. Retrieved January 11, 2015, from www.terrauniversal.com/products/autostorage/morainventrack.php. Alan M.F. (2005). Survival in a Changing World. Journal of Commerce, p. 1. Anthony, D. (2005). A Jewelry Store Management System can help you keep track of the enormous amount of information needed to make your operation hum. Business Information, 76(2); 132-137 Read More