The Benefits Of Inventory Management Software
Imagine going into work at the warehouse on a Monday morning, getting ready to fulfil orders, only to realise you can’t. You don’t have enough stock, and your products aren’t well organised. Your deliveries are all coming out late, and some of them are even going to the wrong place. That’s a nightmare all Warehouse staff and managers hope to avoid. And thankfully, with the use of inventory management software, it can be.
A successful Inventory management operation is hard work, but there are systems out there to help remove a lot of the stress from the process. With these inventory management platforms, small businesses can stay competitive, and larger companies can more easily deal with complex daily operations.
What is Inventory Management?
Inventory management is the practice of managing inventory to keep your supply chains running smoothly. Your customers are relying on good Inventory management practices so that they can get their orders accurately and on time.
Good storage and distribution warehouses often use Inventory management software to better organise and streamline their processes. Inventory being in the right place at the right time can significantly reduce the resources required to get your products to clients.
Though many warehouses use a warehouse management system (WMS) that often provides more features and services than they need, niche inclusions in inventory management systems such as inventory tracking work well and offer several benefits.
“If your inventory practices are unable to keep up with demand, adopting an inventory management software solution can help turn things around.”
Reduced Costs Across the Board
With improved order and inventory accuracy, you have fewer errors, which means fewer resources spent on fixing them. Fewer errors also translate to less being spent on damage control.
Organising your inventory also reduces the money you spend storing unnecessary items. The system will identify the proper quantities of certain products so inventory managers can rest easy knowing the important things are set to renew as needed automatically. This allows for a wider variety of products and cuts back on the amount of money you spend holding onto inventory.
Integrating automation into your inventory management processes also saves time, which saves money. You don’t need as many people to pick, pack, and prepare shipments if you’re making proper use of AI and robotics.
Inventory Accuracy and Efficiency
Many retailers, inventory is only accurate about 63% of the time. Once you understand how damaging an inaccurate order can be, this number is much lower than it seems. One of the most significant benefits of inventory tracking is that it reduces the amount of inventory companies has to keep on hand while improving order accuracy.
Decreasing held inventory allows companies to save massive amounts of money and effort. Companies that use a modern Inventory management system can actually close one or more Warehouse locations and save money associated with those cost centres.
In addition to inventory tracking software, there is a concept known as just-in-time inventory. This inventory strategy, also known as lean inventory, allows a company too closely track its inventory levels and only keep what’s needed in the immediate short-term on hand.
Companies can leverage Inventory management software features and their benefits to remain agile and have tighter inventory control. Adopting some of these strategies can boost return on investment for the system you choose to integrate.
Improved Data Visibility and Planning
Business intelligence offers plenty of benefits to your business. Barcode scanning and other features allow you to quickly transfer data. When using it in conjunction with a central data warehouse, you can build your data assets, so you can get a better idea of what’s going on within the business. With this information, you should be able to answer questions such as:
- Where is inventory going and what customers are being served?
- Who are our biggest customers? What are the most popular products?
- How can agile inventory improve these processes even more?
- What does customer demand tell us about our customers? How can we apply that information to marketing operations?
In today’s business climate, business intelligence is all but necessary to maintain a competitive edge. It allows your company to fine-tune your marketing efforts to boost conversions and increase profit. Though inventory management is helpful on the production side, the information you collect is useful to your marketing team as well.
Prevent Too Much or Too Little Stock
Inventory managers have to deal with keeping stock at the proper levels every day. If stock levels aren’t regularly checked, that can lead to either too much or too little inventory. Either situation is unfortunate because not ordering enough of a popular item can cause a stockout, which leads to missed sales and upset customers. Too much product makes it hard to move and takes up valuable warehouse space that could be used for other products.
Many inventory management platforms use algorithms with your company data to calculate reorder points for various items so you can properly manage your inventory to keep customers happy and optimise your warehouse space.
Better Customer Service
Keeping your customers happy leads to good reviews and repeat business. You’ll build trust and credibility in your industry, too. All the features of an inventory management system are designed to help you look better to your customers.
Increasing accuracy means the right product is delivered to the right place at the right time. Automated tasks help get the orders out the door even faster. Some systems also feature real-time updates that let customers know when their shipment leaves the warehouse and when they can expect its arrival. Giving customers the tools they need to find out when something is supposed to get to them in real-time reduces their worries, and saves you from having to answer the question for them.
Save Time With Automation
Inventory management systems make it easy to save time and reduce labour costs. With barcode scanning and other agile inventory processing features, there’s no need to type in product numbers or box numbers manually. The technology ensures employees or robotic pickers can dramatically increase the number of scans they complete on a shift.
As you automate the more time-consuming tasks, you free up resources so your staff can spend their time on more value-added tasks.
Manage and Coordinating Multiple Locations
Larger businesses are among the earliest adopters of inventory software, along with other kinds of inventory resource planning software, such as accounting software, because this approach works well to scale as businesses grow. Business owners can use real-time inventory information to track inventory across multiple warehouse locations with ease, getting a bird’s eye view of the entire supply.
Properly managing your inventory is crucial to a successful supply chain. It’s impossible to deny all the advantages of inventory management software, and as time moves on, more companies will adopt them as part of their operations. If you fail to plan for implementation on your own, your competition could easily surpass you.
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