Physical Inventory System helps in tracking the different product levels, orders, sales and deliveries. Many retailers, as well as manufacturing organizations, never neglect to use this system because it makes them have an easy management of different aspects of their operations. This system is used primarily, because it helps in preventing both shortages and excessive amounts of stocks. This system, in turn, is used to extensively, as well as efficiently, manage the stocks and inventories. This system imparts a strategic competitive advantage to businesses as this has a user – friendly stock analysis tool, which delivers prompt and fast information.