There is no doubt that effective inventory management can help businesses in several ways. From managing stock efficiently to avoiding wastage of inventory, from predicting future requirements to preventing unnecessary inventory expenses, and so on. Inventory management helps in managing the most crucial tasks related to purchasing orders, stock, sales, etc. For efficient inventory management, effective inventory management software features are important.
Thus, in this blog, we will discover what are the important inventory management software features that you should be looking for! Without wasting any time let us begin!
Important Inventory Management Software Features
1. Stock Monitoring
Stock monitoring lets you know the exact number that you have in stock. It is possible because of tagging, in this process assets are tagged with asset tracking technologies such as Barcode, QR Code, RFID (Radio Frequency Identification), etc. These tracking technologies come in the form of inventory tags & labels. These labels adhere to the inventory so that they provide real-time information.
It helps in knowing how much inventory is left in stock & when it will be finished? When you have these types of information you can take better decisions. For instance, you can identify the reorder level.
Stock monitoring feature helps with:
- Inventory count
- Inventory tagged
- Keep you informed
- Real-time information
2. Restock Inventory
Inventory is crucial for generating revenue for the business. When inventory is crucial for businesses that deal in retail, logistics, and manufacturers. You can lose a lot of potential customers due to the unavailability of the inventory. Therefore, it is important not only to know the current inventory level and refill them before they are finished.
According to Statista, “In 2020, manufacturers suffered the most from inventory distortions in the retail sector. The surge in demand for consumer products produced out-of-stock costs as well as overstock ones, together with other depending factors like outdated IT procedures or home office for employees. In total, the inventory distortion caused a 580 million U.S. dollars loss for stores.”
This data shows how much business suffers from loss due to the inventory distortions. Lots of inventory get wasted because they are not utilized or they get expired. Therefore, you must bring inventory neither too much nor too little. This software helps in restocking inventory & avoid out of stock before your business suffers.
Restock Inventory feature helps with:
- Optimize inventory level
- Regular audits
- Save expenses
- Reduce stock issues
3. Set Reminder
When you have a lot of products then it’s become hectic and complicated to remember all things manually. Thus, reminder alert future allows you to focus on other things & you don’t have to remember manually. How does this feature work? All you have to do set a particular level whenever the inventory goes below that level it alerts the team!
Those days are gone where the vital stock details had to be manually monitored by waste your precious company time and resources. What if a low stock inventory warning is alerted directly? You will find the possibilities of potential problems with the proper inventory warning feature directly via email and/or SMS alert in the future. Shipment status, alarms, etc. Crucial items in operating and organization precisely can be handled quickly by receiving inventory warnings.
Set reminder features help with:
- Minimize inventory wastage
- No potential customer loss
- No need to remember manually
- Better operation control
4. Data Reporting
Data helps analyze the performance of the business. It has all the power to change the whole game for business. As it can help in identifying your organization’s shortcomings and more importantly it can help in resolving those issues.
You can also understand the behavior of customers with data for instance when your business sales are increasing and which product sells higher in which month. This type of information helps in understanding customer. When you understand your customer, you can make better decisions or create a marketing plan to increase sales.
Data reporting features help with:
- Analyzing pattern
- Customer behavior
- Inventory history
- Identifying mistakes
- Resolving issues
5. Assist Cloud-Based Technology
You can run the inventory software from every computer because you have a cloud-based inventory scheme. It allows you to track your stock in real-time. You can use the system from any computer anywhere, wherever, which ensures the communication between workers is enhanced. Precise teamwork leads to a quick and perfect judgment.
If you are not equipped with this software you will have to buy specific software for data security which will be an extra expense whereas Cloud technology keeps data safe & you have to pay only on a subscription basis.
Cloud-based technology features help with:
- Access data from anywhere
- Data security
- Real-time visibility
- Better teamwork
- Add, move inventory from one place to another
With the inventory management software features, you can not only increase productivity but also save a lot of money. When you save money, it impacts the bottom line positively.
Inventory management software enables you to see all transactions on one page which makes it easier to understand. You can create & maintain a list including spare parts and consumables, not just that you can also check stock availability at all locations from a single view place. Inventory management software or asset management software has the potential to take your business to a whole new level.
Frequently Asked Questions (FAQs)
Inventory management enables to track and manage inventory efficiently. It is an approach to sourcing, storing, and selling inventory. This inventory can be read to use a product or it can be raw material inventory that can be a part of a vehicle.
1. Avoid spoilage
2. Saving money
3. Inventory optimization
4. Prevent the theft
5. Detailed reports
These are a few of the benefits of Inventory management. Other than this it can help in understanding customer behavior that can assist in generating more revenue.
There are several techniques used for inventory management:
1. FIFO (First in First out)
2. JIT (Just in Time)
3. ABC Analysis
5. Consistent auditing
6. Set par levels