MANUAL VERSUS SYSTEM DRIVEN INVENTORY MANAGEMENT: A COMPARATIVE STUDY FOR OPERATIONAL PRODUCTIVITY

Abstract

Inventory management is a critical component of business operations, yet organizations often experience varying levels of efficiency when transitioning from manual to system-driven approaches. This study explores the comparative outcomes of manual inventory tracking and system-driven tools, such as Microsoft Excel, in terms of operational productivity. Although digital tools offer clear benefits in speed and accuracy, adoption challenges remain. The study seeks to evaluate these two methods to determine their impact on overall inventory efficiency. This research applies the Information Systems Success Model, evaluating inventory management based on system quality, information quality, and user satisfaction. System-driven inventory tools, particularly Microsoft Excel, were assessed for their interface usability, data accuracy, and alignment with business needs. Manual inventory practices were also analyzed, particularly their reliance on employee experience and lack of standardization. The study measured efficiency, accuracy, and cost-effectiveness through comparative analysis between the two systems. Findings revealed significant differences between manual and system-driven inventory methods. Manual inventory processes, often handled by experienced store crew, showed lower scores in time efficiency (2.70) and accuracy (2.54). In contrast, system-driven methods, frequently used by newer employees, demonstrated higher efficiency (3.98) and improved accuracy (3.02). Cost-effectiveness was nearly comparable, with system-driven systems rated at 2.86 and manual systems at 2.80. However, system-driven inventory management was found to offer greater long-term benefits through reduced errors and optimized stock control. The study highlights the importance of enhancing inventory management systems to improve operational productivity. While manual systems may seem simpler and more familiar to seasoned staff, they are slower and more prone to errors. On the other hand, system-driven methods, despite requiring initial investment, deliver superior performance through automation, real-time tracking, and increased accuracy. Organizations are encouraged to invest in system-driven inventory tools for sustainable productivity and operational efficiency.