Nowadays we are so dependent on mobile, as it has become part of our body! When we forget our mobile at home, we feel so uncomfortable! We perform a lot of activities with the help of mobile most of them are related to entertainment such as watching videos, listening to music & playing games. However, people also use them for important jobs such as scheduling meetings and taking part in meetings, and so on.
Inventory management also can be done with the mobile application. This is the smart way for managing the inventory process & also control inventory! Now you may ask why? Below we have mentioned few reasons why the mobile application is the smart way to control inventory. But first, we need to know what is mobile inventory management?
What Is Mobile Inventory Management?
Mobile Inventory management allows you to keep track of inventory when you are away from your office or working remotely. It also helps in the inventory control process. With the mobile, you get regular updates on mobile and you can change the quantity or send the inventory to other places if required. Mobile also allows you to look into daily transactions and if some changes are required you can do it with your mobile! Furthermore, mobile can also work as a scanner for scanning barcode tags or QR Code tags.
Reasons, why mobile is a smart way for inventory control, are discussed below:
1. Alert and Notification
“Alert & notification” is important when inventory is crucial for business. It assists in the inventory control process. It can save your organization from losing potential customers. Here is an example, suppose you have a retail store and some specific brand t-shirts are selling quickly. When you run operations manually, you will not find out until your inventory is sold out. Then you tell your distributor about it you would have already lost a lot of potential customers.
But with the automated process, you will receive alerts and notifications on your mobile, email-id & SMS will also be sent so that you can take quick action and avoid potential customer loss. This feature helps you even when you are away from your work location. Within just a few clicks you can resolve your inventory issues.
2. Real-Time Updates
When you have real-time updates you are in a position to make better decisions based on real-time data. For instance, when you should refill your stock and which type of products are sold quickly and which are not. You can get accurate data with automated software. This accuracy comes with the software and tags. These inventory tags add more accuracy to track inventory.
When you have accurate data, you can get accurate information that can help in making business decisions & setting future goals, and getting a picture for future requirements. Accuracy is important for business otherwise it can lead to miscalculations for the requirement and overall, it will impact the expenses of the company.
4. Cloud Technology
You can access data from anywhere at any place. When you have all the information on your mobile you can make good decisions based on actual numbers and not just on estimation. With minimal time and money, you can get phenomenal data security that will keep your data secured. It keeps data in an encrypted form and adds multiple layers of security.
5. Set Reorder Point
There comes a time when you realize that inventory handling is not just hectic but it is complex and frustrating as well. But we have to understand finding the right level of inventory is important for the business. So, what is the solution? The solution is setting reorder point! It ensures that have you have enough stock to keep your customer happy. A reorder point is a quantity number that triggers the process of purchasing inventory.
If an inventory is managed in the right way it can lead to huge business losses and impact the top line and bottom line. Below we have mentioned some mind-boggling data.
According to Statista, “In 2020, manufacturers suffered the most from inventory distortions in the retail sector. The imbalance between supply and demand registered during the coronavirus pandemic produced costs amounting to 677 million U.S. dollars at the manufacturing level.” According to a Netonomy, “In a recent study, IHL Group claims Overstocks and Out-of-Stocks cost retailers almost $1.1 trillion worldwide.”
Inventory is an important component of the supply chain. It is a crucial part for sectors such as manufacturing, logistics, retail, etc. In order to save money and to take your business to another level inventory management is significant.
Furthermore, it is time to move from old, typical type of inventory management to automated inventory management software. You can control the inventory process with this software. It will not save you from unnecessary expenses but also give you peace of mind. It can allow you to focus on other things rather than managing inventory.
Frequently Asked Questions (FAQs)
Sometimes it becomes hectic to manage work and manage meetings as well. When you have a mobile, it allows you to work remotely. You can do certain tasks such as check inventory stock in quantity, they also help in providing real-time updates, centralized information.
To understand the stock reorder point formula first, we need to know what is reorder point. It is the minimum point of inventory it means when it reaches its limit. Inventory re-order shall be given.
The formula for calculating reorder point is a lead time in demand plus safety stock! Lead time in demand means after giving a purchase order how much time will your supplier will take to deliver your inventory.
Reorder point formula = Lead time in demand + Safety stock
The overstock or out-of-stock issues occur because there is a lot of inventory and many organizations manage inventory manually. The second reason old fashioned IT Systems that are inaccurate. The solution is an automated new version of inventory management software and inventory tags are used for keeping track of inventory count. They provide real-time information.