In order of better planning of inventory management, companies, often use information technology and various software solution to address the problems of inventory management. An inventory-checking system in one business could easily use the web to talk to a stock-ordering system in another business, thus automatically ordering new stock.
Some wholesalers use state-of-the-art inventory management technology within their distribution centers, which use bar codes and radio frequency signals to track and assure accurate product for customers.
The process of ordering is usually done by computer, either manually or automatically. Automatic ordering occurs when stock levels and reorder points are reached that trigger the computer to reorder drug products.
The next step is to send the order form electronically to the suppliers via the computer or in fewer situations by fax. When using computers for ordering, the supplier’s computer system interacts directly with the company’s computer system to communicate quickly.
Order processing is becoming more automated through the use of computer technology known as electronic data interchange (EDI). The basic idea of EDI is to replace the paper documents that basically accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information.
Computer applications in inventory and ordering system
