Inventory Management Software is essential to look after your business that it has enough products to meet the customers’ demand. Inventory Management Software is anyhow the determining point for the strategic management of any organization.
Inventories are the goods that are found in the storage area of the company. These goods are the materials that are being used in the company for production purposes or to meet customer demand.
The goods will include raw materials, material that is in the production process and finished product. This will lead the product as a company’s belonging and represent itself as an important asset.
What supplies and what quantities does a company have at a given point of time?
The workflow of the company decides the number of suppliers it has. The number of supplies will defer for different businesses.
As for the re-seller, the demand of supply depends on the options of the market. Whereas for the manufacturing company, the number of components counts under the final product, therefore, the final product must be in stock and the quantity is directly proportional to the final product manufacturing plan.
Based on the production of the final product, the manufacturing company mark its needs for supply and accordingly the quantity is determined by the amount needed for the production of the final product.
The best for any organization is to order what is needed at that time. To accomplish the target, you must know the number of items to fulfill your current inventory and their quantity level.
The stock represents a significant and potential amount of investment which needs to be carefully controlled.
Assume that you have overstock, in this condition you will spend money for its storage. Or if you have an understock, inn this condition you will stop the production until the necessary material is purchased, this leads to waste of work and time.
In order to reduce these mashups, you need a dependable system that will work on your behalf that will reduce the costs and maintain stock at an optimum level moreover how much stock you need to order.
10 Functions of Inventory Management Software:
Making your inventory right can affect your business and assist you to keep your costs under control through controlling and managing your supply chain seamlessly.
An Inventory Management Software is a computer-based solution which provides your organization with a comprehensive solution for inventory management requirements.
The inventory management system assists you in keeping track of orders, inventory levels, sales, and deliveries, which will make your inventory management more streamlined.
Following are the 10 functions of Inventory Management Software:
- Improved Productivity and Efficiency:
Inventory management software enables us to increase productivity and efficiency by implementing automated daily manual tasks. This will assist you to maximize the growth of your business.
The software saves uncountable hours and gives the opportunity to print shipping labels, process and dispatch orders, manage stock, create and update the listing on the system.
- Avoid Stock-outs and Over-stock:
When it comes to maintaining the balance sheet of inventories and its management, it is a difficult and challenging task to handle. Case of less stock leads to stock-out which not only disrupt customer relation but cause a possible loss whereas in case of over-stock its storage creates a problem.
With inventory management software installed, you can set a limit for re-ordering so that stock when drops it gets automatically re-ordered.
- Quality Management:
The software has the ability to identify and track issues that can cause delayed shipment or broken packages. Through the already feed data provides guidance to quality management.
- Easy Inventory Management:
The software makes the process of inventory management a lot easier which saves money and time both. It assists to automate the business processes and guides to make smarter decisions.
- Improved Profitability:
The software helps to reach the maximum amount for business investment. It uses marketing and production to increase profits. With the software’s ability to automatically operate the business in terms of management of inventory possibility of fulfilling tasks efficiently and accurately, increases.
It can be in any terms from managing stocks to updating lists on all channels. Then the processing orders will turn to reduce expenses and maximize profitability.
- Planned Management:
You can identify the possibilities of opening multiple stock storehouses located near the customers’ location. This will increase efficiency and improve service levels.
- Balanced Supply and Demand:
When it comes to delivery, time is the focus point. Delivery should be given at the exact time that also with the least pay amount and excess of features.
- Inventory Reports:
The software is meant to generate automated reports. You can get any report such as a low stock report, inventory validation report, inventory forecast report.
- Inventory Tracking:
Inventory tracking is the most beneficial function and feature of inventory management software. The software keeps the track of unlimited serial numbers from when the inventory is received until the time it is issued.
- All-in-one Solution:
The inventory management software is an allrounder when it comes to providing services. It provides you work order management, listing management, shipping management, and will assist you in its streamlined working.
Importance of Inventory Management Software
Inventory problems can cause business losses and failure. Whenever a company runs out of stock inventory, the state does not fall good for the company.
Accurate stock management will help your company to fulfill the orders on time and efficiently. Without proper management and tracking of available goods, it will be difficult to know what you need, when you need, in what quantity you need it.
With good inventory management software, you can keep a track record of all your assets in detail. You can gather all kinds of information and capabilities in one place, this will allow you to make informed decisions regarding all the needs of your company.
A good inventory management software should elaborate on the state of supply and demand, the movement of inventory, and delivery times. Inventory tracking software is meant to ensure customer satisfaction with minimal costs.
Easy reporting and analytical views are essential for inventory management software. giving you a fulfilled list of all the inventories that need to be ordered so you can maintain your stock levels.