Inventory management is a complicated task & it is not easy to handle! Optimizing inventory levels is a never-ending fight. Those businesses which are not equipped with the right tool always struggle in managing the right level of stock. Small size businesses have been struggling with this issue for a long time and cloud software can help small businesses.
Thus, in this blog, you will read the main reasons why small business needs cloud-based inventory management software.
Importance of Cloud-Based Inventory Management for Small Business
1. Eliminating Spreadsheet
This is one of the oldest fashions to keep track of inventory and it is not reliable at all. It does not provide accuracy at all; it impacts the productivity of the organization. Spreadsheet data might show that you have inventory available but when you can physically number do not match! As we said no accuracy!
It is time to say goodbye to the spreadsheet and say hello to cloud-based inventory management. It provides real-time inventory available. Moreover, it does not compromise on accuracy. This cloud software for small business is effective, powerful, and economical.
2. Manual Inventory Management
When inventory management is done manually it is not productive at all! When the human factor is involved, chances of mistakes are increased and inventories are a lot in number. That is why it is considered not effective!
Cloud-based inventory management helps the business in providing accuracy and makes your business more efficient. It allows to use or update inventory from anywhere (office, site, warehouse etcetera). Another advantage of cloud technology, it is accessible from any smartphone device.
For more effective tracking of inventory, organizations should utilize Barcode, QR Code (Quick Response Code), RFID (Radio-frequency identification). These asset and inventory tracking technologies help provide accurate information.
Furthermore, it simplifies the process, and quickly counting of inventory can be done. Thus, enhancing efficiency.
3. Lack of Visibility
Many times organizations do not know where inventory is located and how much quantity is available! The main reason behind this, organization negligence and employees take advantage of this negligence by stealing inventory. Inventory theft affects your business supply chain and you will end up disappointing your customer as you will not have inventory to fulfill the commitment.
Cloud-based inventory software keeps track of inventory from each location. This way you will never have to face an inventory shortage issue. You can manage the inventory of each location. Managers can have a complete view and full visibility of inventory.
4. Decision-Making Process
When you do not have accurate data then obviously decisions based on wrong data or assumptions will be inaccurate and not effective. As a result, the decision will not be favorable to business.
With cloud-based software, you can make informed decisions such as forecasting inventory requirements, gathered data reports, and analyzing trends helps in understanding the state of mind of the customer.
Inventory reports help identify the pattern of demand. Which product performs better in which season that kind of data is found in reports. In this way, you will be always prepared for the future and inventory can be filled accordingly.
5. Data Security
According to CNBC,
“The latest surveys show that small businesses need all the help they can get. In the last 12 months, hackers have breached half of all small businesses in the United States”
The same article says that 87 percent of small organizations don't think that they are at the risk of cyberattack. Moreover, 1 out of 3 small businesses does not have a firewall or antivirus application.
In this situation, cloud software for small businesses can be really helpful as organizations do not have to worry about data theft as data security will be the responsibility of the service provider. They keep data in encrypted form to protect data.
What Are the Features of Cloud-Based Inventory Management?
Cloud software for small businesses is very beneficial as it provides several features:
- Demand forecasting
- Real-time data
- Set-reorder level
- Alert & Notification
- Image & video for better understanding
- Complete inventory list view
- Data reports & history
As we can say when you handle inventory manually it is prone to inaccurate and decisions are also inaccurate. That is why cloud software for small businesses is effective. Not just small business all business needs to migrate to automated cloud software which is more accurate and effective.
Inventory can make or break your business that is why it is important to find that level of stock which neither too much nor too little. Many businesses suffer from loss only due to this reason! Inventory management helps to manage it in the right way.
Inventory or asset management software minimizes errors and saves a lot of time. This software will also save your money by reducing unnecessary expenses. This software is worth a try if you want to grow your business.
Frequently Asked Questions (FAQs)
1. What is the importance of precise inventory management?
With precise inventory management, you will be always informed about the exact location of inventory. Accuracy can play a crucial role in customer satisfaction and when the customer is happy bottom-line is also increased. There will be an exact and precise inventory count. Overall, accuracy is the key to effective inventory management.
2. Why overstocking and understocking is dangerous?
Overstocking means you have bought inventory more than required. But if trends change then the inventory will be wasted. Understocking is also dangerous if demand grows then you will not be able to fulfill the demand and it can lose potential customers. It means loss of business. Thus, both these situations can impact the bottom line that is why overstocking and understocking is dangerous & managing them smartly is important.
3. How do Barcode and QR Code help?
Barcode, QR Code, RFID all of these technologies are used in the form of tag and label. Each tag contains a unique identification number. These tags adhere to the inventory and assets with the tag inventory or assets are tracked. They help provide the location of inventory and assets.