How Perpetual Inventory Software Can Help Your Growing Operation
August 10, 2022 
For many greenhouse and grower-retail operations, bad inventory practices lead to lost opportunities, higher costs, and degraded business performance. It also implicitly invites your customers to shop elsewhere.
There are many ways a grower can manage inventory to achieve better business results. One of the very effective, albeit rigorous, ways is using a perpetual inventory system.
Perpetual inventory is an accounting method where any and all inventory-impacting transactions are recorded in a ledger or software system. Tracking all transactions like this in a ledger allows a company to keep very detailed and up-to-date records on its inventory situation.
For growers, this means recording the receipt and consumption of raw materials, recording the production of finished goods (or bump ups), and recording the sale or scrap of those finished goods, at the very least.
When using a perpetual inventory system, it is important to remember that the grower is managing two realities: the reality in the system and the reality out in the greenhouse or nursery. Ideally those realities stay in sync by using good software and consistent business practices and procedures that ensure employees tell the system when inventory impacting situations occur.
However, in real life, those two realities can and do get out of sync easily because the system is not told what happened in the real world, or told the wrong thing.
Learn more about this topic, the rigors of recordkeeping, and the pros and cons of a perpetual inventory system, in this post from Advanced Grower Solutions.
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