Any organization using the Inventory management System understands how effective it can be in terms of earning profits.
For the individuals who are in a dilemma to either choose inventory management software for your business or not.
Below we've provided seven advantages of the inventory management system to enable you to settle on a good decision.
Before that, let's just have a quick definition of “what is inventory management?” & Why it is important for the organization. So, without wasting time, let's get started!
What Is Inventory Management?
It is the process of ordering, storing, using & managing the inventory of any organization is known as inventory management. Having the right amount of inventory, at the right place at the right time.
To efficiently serve this purpose you can use inventory management software. This software automates the process and saves from inaccurate data.
What Are the Benefits of Inventory Management for an Organization?
Below we have mentioned the advantages of inventory management:
1. Reducing inaccuracies
Inventory & Stock Management consist of an array of internal management processes. When you do all these tasks manually then there are chances for inaccuracies such as doing data duplicity.
Once you adopt inventory management software, it will automate all the data recording and tracking processes leaving no room for errors.
2. Enhanced productivity in Operations
Analytics and reports can enable you to perceive what items are selling quickly via your business channels. This assists you to settle on making more intelligent business decisions and you may detect a pattern.
For e.g. Do you have to manage item and their expiry dates? This can be significant for wellbeing, beauty & medical businesses. Amazing, right? This can be achieved with proper stock management.
3. Happy customers
A decent stock management methodology keeps your clients returning for more. Good stock management can lead to exactly what are you aiming for - repeat clients.
If you need your clients to return for your services & items, you should be able to meet the requirement of customers & satisfy them. This assists you in making a good image, great service & a brand.
4. No more manual work
When you work manually you are prone to make mistakes, or we should call them human errors. You don't want to make those complex calculations by yourself.
Without inventory management software you will be wasting lots of man-hours. The team will be recording what items are used for each transaction and so on. Inventory management software can do these tasks for you very easily and efficiently.
You can avoid deadstock & overstock situations with the assistance of an inventory management system. Inefficient management of inventory can lead to revenue loss, over-spending money, etc.
When you streamline your inventory management you not only just eliminate the stock expenses associated with the human mistake, but also can earn profit by further cost-savings.
You can also calculate what is your safety stock! Most importantly it can get your product history through which you can refill your stock & manage inventory accordingly.
For e.g. One customer who comes to your shop & willing to buy a specific product that is not available in your shop. You would not want that, would you? So, in this illustration, you lost a potential client and business.
But if you have the software you would have received a notification informing you about the low or finished stock.
6. Data Security -
In the inventory management system, you can restrict the user as per your requirement. You can restrict every user & give them rights so that, no mistakes take place. Another benefit and most importantly it provides security at all levels.
For e.g. A worker can write data about items & the manager will approve them if everything is in the correct order.
Overall you can give rights to a user who can see what data, who can retrieve & access what data information. Every user is restrained, so there is no chance of data loss or leakage.
7. Cut Costs and Increase Profits -
Last, but not least, the well-maintenance of inventory and stock management can enable you to cut expenses and enhance your benefit ratio. It can save your unnecessary expenses & through data analytics, you can know in advance that which item will be in more demand in which season.
Through which you plan according to that information. We must keep in mind that, after all, this is what business is all about!
What Are the Main Features of Inventory Management Software?
The main features of inventory management software are discussed below:
1. Set Re-Order Point
When you set a re-order point you can avoid overstocking issues & it also saves from out-of-stocking issues. As this software alerts the responsible person when stock is about to finish then the stock refilling process begins.
2. Inventory Tracking
When a product is in premises such as warehouse, store. It can be tracked with asset and inventory tracking technologies such as Barcode, QR Code, RFID, etc. They are helpful in providing real-time location.
3. Inventory Optimization
Inventory optimization has several metrics such as re-order point, re-order quantity, Accurate stock cover. These metrics are helpful in inventory optimization
4. Inventory Analytics
This software provides numbers and analytics that are helpful in identifying where you have invested your resources and what was the outcome. In short, it gives a complete picture of inventory management.
Managing stock is a hard job. But managing stock correctly is a considerably harder job. However, your stock is an important part of your business you have to work at improving the effectiveness so that your business can flourish.
When you have a stock & inventory management system in your stockroom, the above-mentioned 7 points are not the only advantages you'll get aren't constrained to. Subsequently, decent inventory management software assists you in accomplishing better effectiveness in your stock management.
Simply put, an inventory management system assists in controlling and balancing the flow of incoming and outgoing products.