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Inventory management system: how to make your stock numbers match the shelf

What an inventory management system does, the features a business in Egypt needs, barcodes, warehouses and branches, and how to move from Excel without losing a month.

Every business that holds stock eventually meets the same problem: the system says twelve, the shelf says seven, and nobody knows where five went. An inventory management system fixes this by recording every movement, not just the balance. Here is what it should do, and how to move to one without stopping work.

Why spreadsheets stop working

Excel records a number. It doesn’t know who changed it, when, or why. With one person and one warehouse that can work for a while. With several people, branches or sales channels, the file falls behind reality, and the month-end count becomes a week of reconciling.

What a good inventory system records

  • Every movement. Purchases, sales, returns, transfers between branches, damage and adjustments, each with the person and the time.
  • Locations. Warehouses and branches, and the shelves or bins inside them.
  • Units and variants. Sizes, colours, cartons and pieces, and the conversion between them.
  • Batches and expiry dates for food, medicine and cosmetics, so the oldest stock leaves first.
  • Cost. What each item cost you, so the profit on every product is real.

The features that save the most time

FeatureWhat it replaces
Barcode scanning when receiving and pickingTyping codes by hand, and the mistakes that come with it
Reorder alerts per productFinding out you ran out when a customer asks
Transfers between branchesPhone calls and notes about what moved where
Cycle countsClosing the warehouse for a full count every month
Purchase orders and supplier recordsOrders sent on WhatsApp and lost in the chat
Reports on slow and fast moversMoney tied up in stock that doesn’t sell

Connected to the rest of the business

Stock is shared by everything that sells. The inventory system should connect to the POS in your shops, your online store and the marketplaces you sell on, so one sale reduces one stock everywhere. It should also feed your accounting or ERP with the cost of goods sold. For one client we connected a Phoenix ERP to a Shopify store, so orders reach the ERP as they happen and stock updates every five minutes. You can read the case study.

Ready-made or custom?

Ready-made inventory software works when your products and process are standard. A custom system makes sense when you have several warehouses, manufacturing or assembly, special units, or a sales process that ready-made tools force into workarounds. It is built around how your stock actually moves, connects to the tools you keep, and is registered to you.

Moving from Excel without losing a month

  1. Clean the product list. One code, one name and one unit per product.
  2. Count once, properly. A full count on a fixed date becomes the opening balance.
  3. Run both for two weeks. Record in the new system and compare with the old file until they agree.
  4. Train by role. Receiving, picking and sales each learn their own screens only.
  5. Close the file. Once the numbers match, the system is the only source.

Questions about inventory systems

Do I need barcodes?

If you have more than a few dozen products, yes. Printing your own barcode labels is cheap, and scanning removes most counting and picking mistakes.

Can it work for a factory?

Yes. A custom system can track raw materials, work in progress and finished goods, and deduct materials based on what was produced.

What does it cost?

A focused inventory system starts from $1,900 with us, and a full ERP is priced after a paid discovery phase. Details are on our business systems page.

Mohamed Abdallah

Founder of Dark Media. Writes about what we learn building websites, systems and campaigns for clients in Egypt and the Gulf.

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