Inventory management is a critical task that any business must master, regardless of size. Optimizing the inventory management process can be quite complicated if you’re working with outdated, unreliable data. You might end up with too many items in your stock or too little. You might also lead to ordering slow-moving products when you should have purchased other items instead.
Performing inventory tasks manually is tedious and prone to inaccuracies. But tracking your inventory doesn’t have to be inaccurate, labor-intensive, and time-consuming. This is where an inventory management system comes in handy.
Here are five ways an inventory management system can impact your business for improved accuracy and efficiency:
One of the key features of inventory management system is the centralization of all inventory-related information. The number of your stocks, customers awaiting orders, incoming items, and more are all located in a single, easy-to-search location.
It eliminates the need for actual spreadsheets, paper files, and clipboards. You don’t have to go over files and folders looking for specific inventory reports from last month. By putting all your inventory data in one proverbial basket, you virtually remove any probability of information getting isolated, buried, and forgotten.
Most inventory management software solutions for SMBs are cloud-based. This allows you and your staff to search and retrieve data you need whenever you need it via your mobile devices.
By taking out the need for paper-based checklists, inventory reports, file cabinets, and more, you are saving your business money. With an inventory management solution, access to real-time data is quick. This helps facilitate and speed up many of your business processes, including order management, purchasing, and shipping/fulfillment, while contributing to improving your customer service.
Your inventory management processes are automated and optimized, thus transforming your business into a smooth, well-oiled operating machine. As overall business efficiency and productivity is improved, you effectively cut down operation-related expenses while driving more sales.
Inventory reports used to be time-intensive and extremely tedious. The simplest mistake could cause a lot of damage to your business. But with an inventory management system, you don’t have to manually crunch the numbers and pray you’re not skipping a figure or two.
You can create reports using pre-set templates for a quick view of your inventory’s status. You can also tailor your reports to include specific criteria. As everything is automated, you don’t have to worry about inaccuracies. Everything is precise and to the point.
This allows you to analyze data better and derive more actionable insights to help you make better business decisions and quick changes to your strategies. Decision-making is no longer based on guesses and hunches. Whenever you decide on inventory-related matters, every decision is fueled by data and insight.
Alloy.ai founder and CEO Joel Beal said in a 2019 article on retail trends that companies in the future will analyze inventory information among other business data to customize their supply and address the demand.
With inventory management software, you’re not only able to track your items in stock, but also who are the staff in charge per shipment, delivery, and audit. This functionality makes it easy to create an audit trail, which then empowers your employees to be effective and efficient in their tasks.
Many businesses suffer huge financial losses due to clerical errors in their reports and significant numbers of stolen items from their inventory. Since it’s simple to identify the staff in charge with a specific inventory, implementing an inventory management solution prevents and discourages inventory shrinkage and theft.
If tracking the inventory of a single location is tough, one can only imagine how challenging it is to manage multiple inventories in multiple locations. You want accuracy, reliability, and immediacy. And you can’t have that if your inventory management practices are old-fashioned and dated.
Omnichannel stock control is an important inventory management trend in the near future, with 90% of consumers preferring constant connectivity. A cloud-based inventory management system allows you to manage and monitor inventories from different locations right from the palm of your hand. You have real-time access to the status of your stocks, view shipment schedules, and check deliveries whenever and wherever you may be.
One of the many advantages of a modern inventory management platform is that it’s designed to seamlessly integrate with other business systems like ERPs, CRMs, POS, and more. The smooth and frictionless integration capability of inventory management software allows you to enjoy painless and more enjoyable business management.
While some say that having multiple business systems can cause more headaches, being able to integrate these systems helps you stay on top of your enterprise and all its processes, inventory management included
Sure, investing in investment management software means spending money. But it is a great and very rewarding investment if you value the importance of inventory management.