The Unlikely Survival Story of Paper Inventory Records
December 4, 2024 - 11 minutes readA step-by-step guide to paperless inventory management
Electronic records and computer-based inventory management systems have been with us for over half a century, yet the paper records that preceded them continue to endure in warehouses, factories, and offices all around the world. Despite pledges to stop ‘killing trees,’ paper records for receiving, work orders, auditing, and invoicing are among the examples of inventory management records that often remain in a hard copy format.
Anyone who has worked with a paper-based system understands the pitfalls of lost paper records, voluminous file storage areas, and labor-intensive record searches. For paper records to have survived and thrived in the face of these drawbacks, there must be some hidden benefits as well.
We take a closer look at the history of paper records in inventory management to understand how they continue to endure in the 21st century. We also examine some of the top strategies for eliminating paper and ‘saving trees’ in the years ahead.
“For small business people, less paperwork means higher profits, boosted sales, and more time with the family.” – Tony Abbott
Why so much paper?
Perhaps it is not surprising that paper records have endured for so long when you consider how long they have already been around. Paper was invented in China in the year 100 BC, making the advent of the computer some 40 years ago a recent development by comparison. When computers made their initial appearance in pre-internet times, word processors and dot matrix printers did more to fuel the explosion of paper than dampen it.
Computers made it easier to generate paper packing slips, inventory logs, pick lists, stock requisition forms, and dozens of other paper documents and records that began to fill up file cabinets and offsite record storage facilities. At the same time, paper forms and reports with handwritten signatures become hard-wired into the operations of many businesses, making the eventual conversion to paperless more challenging.
The pros and cons of paper records
Aside from force of habit, the reasons behind the ongoing survival of paper records boil down to some distinct benefits many businesses still perceive as they continue to resist digital conversion. While some point to the cost of electronic systems, others consider paper records more secure, since they are inherently safe from hacking and digital data theft. Additional benefits of paper records include:
- Simplicity and flexibility for basic tasks
- Ease of review for audits and inspections
- Backup records during system crashes or power failures
- Ease of portability for work orders and packaging
At the same time, the scale, speed, and complexity required for omni-channel commerce, vendor managed inventory, and just-in-time inventory management make the deficiencies of paper-based systems clear. Important drawbacks of paper systems include:
- Slower record approval, retrieval, and filing processes
- Large storage space requirements, including off-site locations
- Lack of real-time data input and access
- Negative environmental impact from paper manufacturing and printing processes
6 keys to eliminating paper records
Despite our long history of dependence, it is still feasible to eliminate paper records from our warehouse and inventory management operations, but it requires a plan focused on identifying sources of paper and systematically replacing them.
1. Digitize existing records
Even after digital record-keeping and tracking tools are implemented, paper records continue to find their way onto warehouse and factory floors. One reason for this persistence is the long legacy of paper that preceded the digital solutions. For example, if receiving inspection records were kept on paper for many years, anyone researching information or looking for supporting documents must sort through original paper files as they copy, scan, or forward them to others before returning them.
Scanning all historical records and transferring them to an electronic record management system may seem like a daunting task, but the initial effort pays dividends in efficiency and reduced clutter down the road. Automated scanning and uploading tools can reduce the time and tedium associated with full scale digitization.
2. Mobile point of sale (POS)
Retail and warehouse workers, especially those working in large, spread-out environments, have long relied on paper checklists, note pads, and procedures as they gather information from the floor, then transpose it into an electronic database in a centralized location or office computer terminal. Mobile devices and apps make it possible to eliminate these age-old practices by substituting devices for paper when workers are away from their desks.
Mobile point of sale (POS) systems that communicate with centralized real-time inventory management software are among the key ingredients of this mobile conversion. Mobile POS allows sales professionals to meet with customers wherever they are, then complete seamless paper-free sales transactions that are instantly converted into digital orders and invoices.
“Sales is really the most noble part of the business because it’s the part that brings the solution together with the customer’s need.” – Greg Gianforte
3. Barcode scanning
The first barcode scanners began to appear in grocery checkout stands and distribution centers not long after the first electronic records hinted at our paperless future half a century ago, but their adoption is still far from universal. Many small companies and E-commerce businesses still rely on manual receipt, cycle counting, and material tracking processes that could be made exponentially faster and less error-prone through barcoding. During inventory audits and cycle counts, barcode scanning eliminates the need for paper stock sheets and logs that must be reconciled during and after the counting process, then stored in yet another paper storage location.
4. Vendor integration
An aspect of paper reduction that is often overlooked is the importance of vendors and the overall supply chain in minimizing paper records. Material deliveries are often accompanied by paper packing slips, receipts, certifications, and other paper records that can easily be converted into a digital format. Scanning these paper originals only creates more work and an inefficient and redundant filing system, so the best course is to eliminate the paper at its source. Supplier partnerships that include collaborative inventory management and order management software can facilitate a mutual elimination of paper records that benefits both companies.
5. Electronic signatures
Most of us can recall a time not long ago when anything other than a hand-written signature was considered non-binding. This led to more printing, scanning, and emailing of files than we had ever witnessed before. Thankfully, encrypted electronic signatures are now recognized by most organizations, for almost any type of transaction, creating a significant drop in paper consumption. Electronic signatures also played a big role in making remote working possible, keeping documents secure as they go through the signature loop.
6. Cloud-based inventory management
Advanced inventory management software and warehouse management apps are among the most essential tools for eliminating paper files once and for all. Centralized, cloud-based inventory management systems provide a historical database and real-time source of truth that can be accessed without using physical documents or reports. Advanced software solutions also lie at the heart of automated receipt and order fulfillment systems capable of recording transactions without generating unnecessary paper files. Additional inventory management software features that help to eliminate paper include:
- Automated stock alerts to eliminate paper reminders
- Digital purchase orders to replace printed paper forms
- Digital audit trails to minimize physical audit documentation
- Electronic shipping documents with no printed packing slips
The persistence of paper: Final thoughts
The first paper records must have seemed like a breakthrough in efficiency when they replaced the papyrus and stone tablets that preceded them. For centuries, paper was the primary medium for knowledge and information transfer around the world, but times have changed. The demands for real-time data, remote approval, cloud-based record access, and digital reporting methods are quickly making paper records obsolete. Advanced inventory management software is at the center of this monumental transition.
Cloud-based Agiliron software solutions include integrated inventory management, warehouse management, and mobile POS software that allows you to maintain, store, and sell products from many locations while managing from one. Full-featured customer relationship management ensures the latest transactions, trends, and feedback are digitally stored and analyzed continuously. All of our solutions are designed to integrate seamlessly with the leading E-commerce platforms.
Paper records served their purpose by preserving the history of society for millenia, but the next era of data management and reporting has finally arrived. Inventory management software and warehouse management software help to make this long overdue transition a reality. To find out more, contact us today and allow our solution experts to explain how advanced software tools can take your business to the next plateau.
