It does not matter if your organization is small or huge if inventory is a major part of your organization, then you will need inventory management software. If you are into retail business, production, or manufacturing then inventory management software is important. Why? Because it is helpful in keeping track of inventory and it can provide real-time information on inventory availability so that your organization does not suffer from inventory management issues.
However, there are several inventory management software factors that you must check! In this blog, we will know what these inventory management software factors are. So, without wasting any time let us begin! But before that let us know inventory management basics!
What Is Inventory Management?
How much inventory you have in stock and how much inventory you will require in a specific period without hampering business activities.
When you are managing inventory properly & efficiently that is inventory management. It keeps track of inventory from beginning to end. This practice recognizes and answers patterns to guarantee there's sufficient stock to satisfy client orders in every condition.
Inventory management is not a simple task as there are lots of activities that need to be done to take care of inventory, that is why inventory management software is required.
It provides a systematic approach to keeping track of inventory and minimizes chances of inventory-related issues occurring as it provides alerts in advance & warnings for inventory shortages.
According to the Global Market Insight, “Inventory Management Software Market size crossed USD 3 billion in 2019 and is estimated to grow at a CAGR of over 5% from 2020 to 2026.” Inventory management software enables organizations to manage the right level of stock at the right place at the right time.
Recommend To Read: A Variety of Inventory Management Methods to Enhance Business
What Is the Importance of Inventory Management?
Inventory management is important because it lets you know when inventory will be finished and when you need to reorder.
It is helpful in avoiding stock issues such as overstocking and out-of-stock. Inventory management assists businesses to expand without losing any customers as it provides a strategic approach to managing inventory.
What Are These Inventory Management Software Factors?
Inventory management software factors are discussed below:
1. Software Requirement
Do you really need software? If yes, then what kind of software? It is very important that you figure out what kind of software your organizations need!
So that you can curate software accordingly. What kind of problems will this software resolve! This is one crucial factor when choosing inventory management software.
2. Customized Features
Inventory management software should have customized features according to your needs. Managers should always be communicating with the software development team as some features may not be essential or not good at all. It depends on your needs and work procedure needs.
For example, do you want to track inventory location or keep track of inventory levels? These inventory management software features are helpful in avoiding stock issues! Sometimes you need a specific feature that is not available in the existing software, so a customized feature is added.
3. Software Cost
Another major important factor in inventory management software is software cost. It is not a surprising factor when software is designed as per your business requirements and daily operation.
However, lots of organizations do not spend much as they want just software, but they do not realize that it can be a game-changer for their business and sometimes they do not have much budget.
There are several data that are essential and can be integrated with inventory management software for a better outcome. That's why integration is essential! As it enables one software to be integrated with other software to improve efficiency.
Those organizations who know the potential of integration for them it is not ignorable inventory management software factor.
Several organizations worry that they will not get the support they will require but it does not happen. Moreover, you clarify before investing in inventory management software.
The support team will set up all the low-level inventory stock and they will provide complete training in the software. They will provide a solution to all your problems as quickly as possible.
These were the major factors when choosing inventory management software that is helpful to an organization. If you still have some queries about inventory management software, you can contact us.
Asset Infinity provides cloud-based inventory management software that helps in efficient and effective inventory management easily. For using this cost-effective solution you can schedule a demo.
Frequently asked Questions (FAQs)
Q.1 - What Are the Major Inventory Management Issues?
Major inventory management issues are overstocking and out-of-stock issues both issues are dangerous for business.
In overstocking organizations, purchase inventory, more than they can sell as a result lots of inventory is left in this stock, as the organization is unable to sell or use.
Out-of-stock issues in which organizations do not know that the inventory is finished, and potential business loss occurs. It also leads to customer disappointment.
Both issues can be avoided with inventory management software as the system alerts when inventory is about to finish so you can avoid out-of-stock issues easily. Moreover, it also provides valuable data that lets you know how much inventory you can sell in a specific period which helps in avoiding overstocking. This software also helps in calculating future demands so you can prepare accordingly.
Q.2 - How Is Inventory Tracking Done?
For inventory tracking, inventory tags or labels are used. These tags contain a unique identification number that number is stored in the inventory management software and whenever the number is scanned it fetches all the information related to it. For scanning tags, smartphones can be used as it saves the expenses of purchasing a scanner.
Q.3 - What Are the Various Inventory Tracking Techniques Used? Which Technique Is Best?
Various inventory and asset tracking techniques are Barcode, QR Code (Quick Response code), RFID (Radio-frequency identification), GPS (Global Position System), BLE (Bluetooth low energy), IoT (Internet of things), NFC (Near field communication), etc.
All these techniques have their pros and cons, for instance, a barcode is cost-effective, but it is not as advanced as other technologies whereas BLE is most suitable for tracking inside premises but costly. NFC scans faster but has limited range. So, it depends on the requirements of your organization.