Computer applications in inventory and ordering system

Inventory management I an especially complex process for companies that producing articles which selling. This means that production just have data about the quantities of products required to produce for delivery or in addition to the annual and monthly sales plans, continuously carrying out plans on daily basis in necessary.

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

IT Outsourcing

A first class information technology system is critical in delivering strategic intelligence and indispensable in managing the company’s greatest asset – information, but the actual management of the systems can be a distraction and a burden for a company whose core competence is not related to IT.

The outsourcing of information system or information technology functions has become a common business practice for small and large company alike.

Software or IT outsourcing can be defined as the significant contribution by external vendors in the physical and or human resources associated with the entire or specific components of the IT infrastructure in the user organization. The word outsourcing finds it roots in the words ‘outside’, ‘resource’ and ‘using’. It reflects the use of external agents to perform one or more organizational activities.

Software outsourcing and business service are large and fast growing sectors globally. The outsourcing involves hiring a third part company or service provider to perform software related activities, such as application management and application development.

Outsourcing success can be viewed as the level of fitness between the customer’s requirements and the outsourcing outcomes. The benefits are enormous. Software outsourcing eliminates all the headaches of the sheer administrative burden of maintaining essential software, the deployment of new project IT, the ongoing upgrades, the sourcing of scarce IT staff, and the employee or consultant costs.

Often-cited benefits of the IT sourcing include improved core business performance, improved IT performance (due to the vendor’s expertise) and reduced IT costs.

Combined with technical staff of the host’s staff, this results in negligible downtime and increase productivity. Users always have the latest version of the software. And the uptake of this model is increasing.

Eventhough the outsourcing of the IT infrastructure is not new, but the traditional model is changing, as software delivered as a service using Internet technology is the next logical step.  By providing software applications like a utility can better manage the distribution of their resource.

By moving IT facilities offshore to low-labor costs areas and/or through economies of scale, the vendor can perform the outsourced function more cheaply than the client firm could have otherwise.
IT Outsourcing