Inventory management, Excel and programs Which method is better?
At first glance, managing inventory in Excel is simple. By recording product lists and incoming and outgoing quantities, you can also manage current inventory.
However, as the number of products increases or multiple people manage them together, file management and inventory checking can become increasingly cumbersome.
So, how long should I use Excel for inventory management, and when should I switch to a program? In this article, we will summarize the differences between Excel and inventory management programs for small business owners.
If you need the basic Excel setup for products, receive/issue, and on-hand stock, see How to manage inventory with Excel first.
1. Why manage inventory with Excel?
Many business owners choose Excel first when starting inventory management. This is because it is a tool you are already familiar with, and you can get started right away without having to learn a separate system.
- You are already familiar with it and can use it right away.
- There is less burden of learning a separate system.
- You can freely customize the table configuration.
- Low initial cost.
- If you have a small number of products, this can be easily managed.
It's natural for small business owners to choose Excel for the first time.
2. Advantages of Excel inventory management
Excel also has clear advantages as an inventory management tool.
| item | Description |
|---|---|
| familiar | Easily accessible to most users |
| flexibility | You can configure what you need yourself |
| low initial cost | Can be started without a separate inventory management system |
| Simple management | If the number of products is small, management is relatively easy. |
3. The moment when Excel inventory management becomes inconvenient
This doesn't mean that Excel is a bad tool. However, as management scale and complexity increase, limitations may appear.
1. When there are a lot of products
More rows and columns means it takes more time to find the product you're looking for and check current availability.
2. When multiple people manage together
When sharing files, you may get confused about who last modified them or see different versions.
3. When entry and exit records increase
As records accumulate each day, tables become longer and it can become difficult to catch input mistakes or omissions.
4. When you need to check past inventory history
To double-check when and how much was received and shipped, you may need to manually look up records on multiple sheets.
5. When actual inventory and records differ
Tracing the reasons for differences often requires comparing past entries and releases one by one.
4. What changes if you use an inventory management program?
Inventory management programs often handle products, receipts, shipments, current inventory, and history as one flow. Compared to Excel, there are usually the following differences.
product management
- excel
- Construct your own tables
- Inventory management program
- Use product management features
Receiving records
- excel
- Enter directly
- Inventory management program
- Receiving feature
Shipping records
- excel
- Enter directly
- Inventory management program
- Shipping feature
current stock
- excel
- Formula/Table Management
- Inventory management program
- Check current stock
transaction history
- excel
- direct management
- Inventory management program
- History search
multiple users
- excel
- File sharing method
- Inventory management program
- User/Permission Features
However, not all inventory management programs provide the same features. Since the scope and usage of each product may vary, it is best to check based on the features you actually need.
5. When it is okay to continue using Excel
If the management scale is small and there are no major inconveniences with the current method, as shown below, continuing to use Excel may be sufficient.
- Not many products
- managed alone
- There is not much in/out
- No complicated inventory history
- There are no major inconveniences with the current method.
In this case, there may be no need to change the program. What is more important than the name of the tool is whether it can actually be managed well.
If you want the table structure for continuing in Excel, see How to manage inventory with Excel for products, movements, and on-hand stock.
6. When to consider an inventory management program
Conversely, if the changes below continue, it may be time to consider a dedicated inventory management program.
- Product count continues to increase
- Increasing inventory movement records
- Managed by several people together
- Current inventory needs to be checked frequently
- Need to check past inventory changes
- Excel file management is becoming more and more cumbersome
7. What to check when choosing an inventory management program
When choosing a program, it is better to check what you actually need for your daily work rather than a list of features.
- product management — Make sure basic information like product name, code, and category is organized and easy to edit.
- Receiving/delivery management — Check whether the method of recording receipts and shipments is simple and can be used directly in practice.
- Check current stock — The key is to be able to quickly find the remaining quantity.
- inventory history — It is easy to find the cause of the difference when you can check again what changes occurred and when.
- User/Permissions — If you use it with employees, it's important to be able to share who can do what.
- Import/Export Data — Move your existing Excel product list or make sure you can get the data back when you need it.
- Pricing and usage limits — Compare whether free/paid conditions, store/product/employee limits match the actual scale of operation.
8. What inventory management is necessary for small businesses?
Not all businesses need a complex system at the ERP level.
For small businesses, accurately managing the basic flows below may be sufficient.
- Product registration
- receiving
- Delivery
- current stock
- Inventory change history
The important thing is not to choose the tool with the most features, but to choose a tool that fits the size of your business and how you actually manage it.
9. Which business is STOCKSON suitable for?
STOCKSON is an inventory management service that allows you to manage products, categories, receipts, shipments, inventory adjustments, current inventory, transaction history, etc. on the web.
It may be especially suitable for businesses that:
- A business owner who runs a small business
- Businesses who need to manage product inventory
- Business owners who find Excel management increasingly cumbersome
- Business owners who want to record receiving and shipping
- Business owners who want to easily check current inventory
- Business owners who want to use it with their employees
- Businesses who do not need complex ERP
For more detailed product introduction, Inventory management program You can check it out on the page.
STOCKSON Free Plan
You can start with STOCKSON with the Free plan.
Free
₩0 / month
- 1 location
- Up to 5 products
- Up to 3 employees
Frequently Asked Questions
Can inventory management be done using Excel?
Yes. If the number of products is small and you manage it alone, Excel may be sufficient. If your current method is not inconvenient, there is no need to change it.
When do you need an inventory management program?
You can consider it when the number of products or transactions increases, or when multiple people manage it together and Excel management becomes inconvenient.
Is an inventory management program the same as ERP?
No. Each program has a different scope. Some large systems include accounting and human resources, while others focus on inventory management.
Can I transfer data from Excel to an inventory management program?
Each program has different application methods. STOCKSON supports product CSV import.
Is STOCKSON free?
We offer a Free plan and can use 1 store, up to 5 products, and up to 3 employees.
Start by checking the inventory management method that suits you.
If managing with Excel is still sufficient, you can use it as is. However, if inventory management is becoming increasingly cumbersome, you may want to consider a dedicated inventory management program.
STOCKSON is a web inventory management service that allows small businesses to easily use the inventory management functions they need.