Cloud-based Inventory Control vs. On-site Inventory Control: Which is Right for You?

Inventory control is a critical aspect of any business - it can make or break your supply chain. With the advancements in technology, there are two primary ways of managing inventory: cloud-based inventory control and on-site inventory control. While both of these methods aim to streamline the inventory management process, they have inherent differences that make them unique.

Before making a decision on which inventory management system is best for your business, it's essential to know the differences between these two methods. Here's our take on the comparison of cloud-based inventory control and on-site inventory control.

Cloud-based Inventory Control

Cloud-based inventory control is managed through a software program which is hosted on remote servers. Users can access the software through an internet connection and manage inventory virtually from anywhere. It's an efficient, cost-effective way to manage inventory as most cloud-based systems charge a subscription fee with a lower upfront cost.

Advantages of Cloud-based Inventory Control

1. Scalability: Cloud-based inventory management systems are flexible and can scale with your business needs. You can easily add or remove users, storage, and features as your business grows or changes.

2. Mobility: With a cloud-based system, you have the flexibility to manage your inventory from anywhere, any device, as long as you have an internet connection.

3. Cost-effective: It's a more cost-effective solution as it eliminates the need for purchasing specialized hardware, expensive IT infrastructure, and extensive maintenance.

Disadvantages of Cloud-based Inventory Control

1. Dependency: With a cloud-based system, you are dependent on the reliability and security of the internet connection.

2. Security: As the system is hosted on a remote server, it's susceptible to cyber-attacks.

On-site Inventory Control

On-site inventory control is managed within your company's local server or infrastructure. It can be either web-based or offline. It involves purchasing servers, taking on additional IT staff, license fees, and extensive maintenance.

Advantages of On-site Inventory Control

1. Security: You have complete control over the security of your inventory management system.

2. Integration: On-site inventory control systems can be more easily integrated with your existing business infrastructure and other software, allowing for seamless management.

Disadvantages of On-site Inventory Control

1. High start-up costs: The start-up cost for an on-site inventory control system can be significantly higher than that of a cloud-based system. This makes it less accessible and practical for small businesses.

2. Maintenance: Extensive IT infrastructure and specialized staff require more maintenance.

Conclusion

Both cloud-based inventory control and on-site inventory control have their own benefits and drawbacks. In today's world, cloud-based inventory control is a more practical and accessible solution for most businesses, but on-site inventory control may be preferred for companies with their own server and infrastructure. Ultimately, the best choice depends on your business's unique needs and budget.

Have you tried a cloud-based or on-site inventory control system? Share your experience in the comments below!

References:

• Kenandy. "The Pros and Cons of Cloud-Based Inventory Management Systems." Accessed September 28, 2021. https://www.kenandy.com/2017/09/19/the-pros-and-cons-of-cloud-based-inventory-management-systems/

• Fishbowl. "The Advantages and Disadvantages of Onsite Inventory Management." Accessed September 28, 2021. https://www.fishbowlinventory.com/blog/the-advantages-and-disadvantages-of-onsite-inventory-management/