A warehouse or stockroom gone wrong is when there are not enough stocks, racks have gone empty, and products are not organized and problems on top of problems are flooding at a time where there is a spike in demand.
Not only this can equate to a massive sales loss, but this can also leave new and old, loyal customers dissatisfied. You do not want to witness your business going downhill, right?
Thanks to this digital era, inventory-related issues will be eradicated and prevented as long as a good inventory management software is deployed.
The Perks of Using an Inventory Management Software
Inventory management entails a set of business sub-processes working simultaneously to keep a smoothly running supply chain.
With a well-managed one, the business will be able to cater to the needs of its customers on time and with accuracy while cutting down on the resources needed.
An inventory management software can ace the totality of this process. Its perks? Read on:
Perk #1: Expenses can be reduced across the board
With an enhanced inventory order and an accurate process, errors that were common in the manual process can be significantly reduced, if not totally eradicated. This means you will no longer have to spend as much on fixing errors and the consequential damage.
Another potential savings from using an inventory management software is how it can help you cut down on overstocking expenses.
The system will be reflecting updates on stocks in real-time, hence you will easily notice if a product is overstocked or understocked. This helps you cut back on the capital you have been spending for unnecessary stocks
Lastly, with a good inventory software, you will be able to save a lot of time which you and your staff can spend on other essential matters.
Your pick and pack team will finally be able to do their job with confidence and ease knowing records are still kept accurate.
Perk #2: Efficiency and Accuracy of Inventory
According to a study, inventories are only accurate around 60% of the time, but this can even go extremely lower when managed manually. The thing is, inaccuracy in inventory management can be very damaging to the business.
Here is where inventory management software can be your knight in shining armor. It helps you reduce the time you have to spend on managing inventories without losing data accuracy and integrity.
The best of the best inventory management software in the market nowadays even incorporate the popular just-in-time inventory concept.
Also famous as lean inventory, the concept enables a business to closely monitor its levels of inventory to identify its forecasted short-term demand and sticks to stocking within that range.
Businesses can maximize the uses and benefits of inventory management software to remain active and gain a more accurate and tighter control of inventories. These concepts can boost a business’s return on investment.
Perk #3: Data Integrity and Visibility – Improved and Maintained
As we know, computer systems are mostly created with intelligence, especially if they are from a reputable software provider. This intelligence offers many perks to a business.
In layman’s term, this can be in the form of barcoding, barcode scanning, and other features that facilitate fast but reliable data storing and reading.
Hence, if you have an inventory software with these features and you use this along with a warehouse software, your processes under these areas will definitely be streamlined.
With that at hand, you will finally be able to answer significant queries easily and it will feel like you’ve gained the best control over your records and processes.
It can be inquiries about the inventory, customers, products, and processes. In the present business climate, business intelligence is considered vital to keep that edge over your competitors.
It enables your company to improve and smoothen your marketing efforts to turn more leads into sales and increased earnings. On the production side, the software will be helpful and the data collection can also be used to leverage your marketing plans.
Perk #4: Understocking or Overstocking is reduced or prevented
With the manual inventory management approach, business owners and managers would often have to spend so much time to ensure that stocks are at their right levels on a daily basis.
However, with this time consuming and error-prone process, sometimes even a single day’s miss will lead to item overstocking or understocking. Either way, it can equate to financial loss.
The good thing about inventory management software is it works based on proper algorithms in calculating inventory figures, like reorder points, reorder quantities, and it can automatically alert end-users when these figures are almost reached, allowing business owners to act ahead or on time.
Perk #5: Easy and Reliable Centralized Inventory Management
This perk is very useful especially for businesses that exist in multiple branches. Inventory management software is pro-growth as it can also scale as a business expands and with it, users can take advantage of a centralized inventory management where inventories from multiple warehouses can be tracked and synced with ease, helping business owners get to have a bird’s eye view of the entire supply.
Perk #6: Customer Service is made better
Since your inventory records are kept accurate, you can be sure that the right items are delivered to your customers at the right time. Real-time updates will also help you stay on track.
In other words, an inventory management software will help you meet your customers’ demands conveniently and smoothly. This helps you earn their trust in the industry, thereby enhancing your company’s image and reputation.
Perk #7: The automation is a life-saver!
Inventory apps make it easy to reduce labor costs and save time. Take barcode scanning and other automations in the management process for instance; the manual pen-and-paper approach of recording and updating data is finally eradicated and replaced with technology for a streamlined process.
The then time-consuming tasks are no longer time-consuming and on that note, you can finally have your staff focus on other essential matters. Hiring more staff is no longer necessary.
Inventory must be managed properly as it plays a crucial role in having a seamless and reliable supply chain. With a good cloud-based inventory management software, that will surely be facilitated.