What is Perpetual Inventory?
Perpetual inventory systems use a continuous, near real-time inventory count, as opposed to counting inventory only occasionally and periodically.
In a typical inventory management system, inventory is counted at regular periods. That varies by business and industry, but it can be done annually, bi-annually, monthly, or even weekly.
In a perpetual inventory system, the inventory count is tracked continuously and in near real-time, as goods are received, distributed, or sold. This means the inventory count is much more accurate than systems that only update inventory counts periodically.
One Network's Perspective on Perpetual Inventory
Effectively managing and optimizing inventory requires an accurate inventory count. If your system is only updating your inventory count occasionally, your actual inventory levels almost certainly differ from your system count. Therefore, continuous or perpetual inventory tracking is the first step to managing and optimizing your inventory. The system can update inventory numbers automatically, based on point-of-sale and receiving data.
One Network’s NEO Platform is a network that connects all trading partners in real time, it tracks inventory across your sites, trading partners, and in-transit. This gives you accurate inventory quantities, continuously updated as new supply arrives, and new sales are made.
One Network's Multi-Tier Inventory Optimization and Management Solution is a perpetual inventory system. Accurate inventory counts drive better decisions, and improved optimization across the supply chain. The result is reduced inventories, improved service levels, reduced stock outs, and improved revenues for all trading partners. Intelligent NEO agents continually monitor shifts in demand and supply, and re-match supply to demand to keep inventory levels optimized at every node - to meet demand at the desired services levels and the lowest cost.
Inventory Optimization Resources
Multi-Enterprise Inventory Optimization
How One Network’s MEIO solution enables inventory planning and optimization across multiple tiers in the supply network, to improve revenue and customer satisfaction while reducing inventory levels and transportation costs.
Nucleus Research's Inventory Optimization Value Matrix 2019
How do inventory optimization solutions stack up? A complimentary report from Nucleus Research tells you what you need to know.
How Dana Reduced Inventory by 31% (Case Study)
This automotive supply chain case study explains how Dana was able to connect multiple ERP systems, gain visibility across hundreds of suppliers, and cut inventory by 31%.
