Ecommerce Fulfilment Services

Perpetual Inventory System

perpetual inventory system

A perpetual inventory system (PIS) is a method of accounting for inventory. It records the sale or purchase of inventory immediately through the use of computerised point-of-sale systems and enterprise asset management software. Unlike periodic inventory systems, which update inventory counts at specific intervals, a perpetual system offers real-time insights into inventory levels, costs, and financial records.

For eCommerce businesses, integrating a perpetual inventory system with online sales platforms ensures accurate stock levels are displayed to customers, improving the shopping experience.

How Perpetual Inventory Systems Work

Real-Time Tracking

The core feature of a PIS is its ability to track inventory changes in real-time. The system automatically updates the inventory count and financial records whenever a product is sold, purchased, or moved within a warehouse.

Integration with Other Systems

Perpetual inventory systems are often integrated with other business systems, including point-of-sale (POS) systems, purchasing, and accounting software, to streamline operations and ensure accuracy across all departments.

Continuous Reconciliation

Although the system updates inventory counts instantly, regular physical counts are still necessary to account for discrepancies due to theft, loss, or damage. These counts help businesses reconcile their physical inventory with the records in the perpetual inventory system.

More Fulfilment Terms

Direct to Retail refers to the business model where manufacturers or producers sell their products directly to retail stores.
A Stock Keeping Unit (SKU) is an identifier for each distinct product and service that can be purchased in business.

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