Traditional Inventory Management: How to Solve Your Problems

Learn how to optimise your inventory management and succeed in today's fast-paced business landscape.

January 6, 2023

Man solving Cloud wms inventory management challenges

Managing inventory has always been a crucial aspect of business operations. Traditional inventory management involves manually tracking and managing inventory levels. However, this method has several drawbacks that hinder a company’s success. In this article, we will discuss the problems with traditional inventory management and the solutions that modern inventory management systems provide.

Whether you’re exploring inventory management or looking to optimise your existing system, this article will provide valuable insights and guidance. So, let’s dive in and discover how to manage inventory in today’s fast-paced business landscape effectively.

Yellow warning sign with text 'Challenges Ahead' for Traditional Inventory Management

What is Traditional Inventory Management?

Traditional inventory management involves manually tracking and managing inventory levels. This process is time-consuming and requires a lot of resources. It involves counting and recording inventory levels, updating records manually, and tracking inventory movement. The process is prone to errors, and it isn’t easy to track inventory in real-time.

Common Problems with Traditional Inventory Management

Traditional inventory management can be difficult and time-consuming. It can lead to various problems, such as inaccurate data, poor customer service, and inefficient processes. Here are some of the most common problems with traditional inventory management:

Inaccurate Inventory Counts

Traditional inventory management is prone to human error. Counting and tracking inventory manually increases the likelihood of mistakes. Inaccurate inventory counts can lead to overstocking or understocking, resulting in lost sales, reduced profits, and decreased customer satisfaction.

High Costs

Traditional inventory management is costly. It requires a significant amount of resources, including time and labour. The process involves hiring employees to count and track inventory, updating records, and manually managing inventory movement. The costs associated with traditional inventory management can add up quickly, reducing a company’s profits.


Traditional inventory management is time-consuming. Counting and tracking inventory manually takes a significant amount of time and resources. It can take hours, days, or even weeks to complete the process. This can lead to delays in order fulfilment and reduce customer satisfaction.

Lack of Real-Time Data

Traditional inventory management does not provide real-time data. It isn’t easy to track inventory movement and stock levels in real-time. This can lead to overstocking or understocking, reducing profits and decreasing customer satisfaction.

How to Solve Inventory Problems

The key to successful inventory management is having an efficient system that can accurately track and manage inventory. Here are some tips for solving inventory problems:

Accurate Inventory Counts

Modern inventory management systems use advanced technology, such as barcode scanning and RFID tags, to provide accurate inventory counts. This reduces the likelihood of human error and ensures that inventory levels are always up-to-date.

Reduced Costs

Modern inventory management systems are cost-effective. They require less labour and fewer resources compared to traditional inventory management. The systems automate the process of counting, tracking, and managing inventory, reducing the need for manual labour and saving time and money.


Modern inventory management systems save time. The systems automate the process of counting, tracking, and managing inventory, freeing up employees to focus on other tasks. This reduces the time to complete inventory management tasks and improves overall business efficiency.

Real-Time Data

Modern inventory management systems provide real-time data. The systems track inventory movement and stock levels in real-time, providing businesses with up-to-date information on inventory levels. This enables businesses to make informed decisions about inventory management and reduces the risk of overstocking or understocking.

Warehouse Management System Overview

A warehouse management system (WMS) is an inventory management system designed to help businesses manage their inventory more efficiently. A WMS can help businesses track inventory levels, automate processes, and improve accuracy. It can also help businesses optimise warehouse operations, reduce costs, and improve customer service.

Benefits of a Warehouse Management System

So, what can a WMS do for your business? Let’s take a look at some of the benefits:

First and foremost, a WMS can improve your inventory accuracy. By automating inventory tracking and management processes, a WMS reduces the likelihood of errors that can lead to stockouts or overstocking. Businesses that implement a WMS typically see an improvement in inventory accuracy of up to 99%!

But that’s not all. A WMS can also increase your operational efficiency. It automates tasks such as inventory receiving, put-away, picking, and shipping, reducing the need for manual labour and increasing productivity. A WMS can help businesses reduce operational costs and improve profitability by optimising warehouse processes. Businesses that implement a WMS typically see a 20-30% increase in productivity!

In addition to improving inventory accuracy and operational efficiency, a WMS can enhance customer satisfaction. By providing real-time inventory visibility, businesses can quickly fulfil customer orders and avoid backorders. This leads to improved customer satisfaction and loyalty – something every business wants!

A WMS can also help businesses improve supply chain visibility. By providing real-time inventory data and tracking, businesses can identify bottlenecks in the supply chain and make informed decisions about procurement, manufacturing, and logistics. This can lead to a more efficient and effective supply chain overall.

Finally, a WMS can help businesses comply with regulatory requirements. It can track inventory expiration dates, lot numbers, and other compliance-related information, ensuring businesses meet regulatory requirements and avoid fines. This is especially important for businesses like healthcare and food and beverage.


Traditional inventory management is becoming less efficient, inaccurate, and expensive as technology advances. Modern inventory management systems provide solutions to the problems associated with traditional inventory management. These automated and accurate systems provide real-time data, making inventory management more efficient and cost-effective. Businesses that adopt modern inventory management systems can improve their overall efficiency, reduce costs, and increase customer satisfaction.

So, consider investing in a warehouse management system like Clarus WMS to solve your inventory challenges. One of the critical features of Clarus WMS is its real-time tracking capabilities.

With this system, businesses can track their inventory in real-time, ensuring an accurate and up-to-date view of their stock levels. This can help businesses avoid overstocking or running out of essential products, which can hurt customer satisfaction and sales.

Discover the benefits of Clarus WMS for your business and book a demo to see the system in action. A representative from the Clarus team will be happy to walk you through the features and answer any questions you may have.

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