The management of inventory relates to the process, which helps you know what you have in your stock and where the stock is located. Earlier businesses do this job manually. However, with technology advancements, they do this job with a use of an IT solution. And that solution is inventory management software.
This solution does nothing alone. Your vendor integrates it with your accounting and back-office systems. This integration gives you a competitive edge and enables you to plan and execute your inventory management work. Further, it helps you lower your labour costs and human errors.
The installation of one of the best inventory management systems gives you numerous benefits. Here are 3 of those benefits:
1. Inventory optimisation
To have the right products in enough quantity in your inventory is beneficial for the satisfaction of your customers and investors. Ususally, your buyers love to have fresh products on demand from you and investors don’t like idle capital in the inventory. As a business owner, you need to balance these two conflicting objectives. Such balance could lead you to have extra inventory wastes that would be extra investment beyond the early labour and material investment.
Inventory activities like counting, storing, and reworking inventory add extra working capital. And this can lead you to reduce the availability of products. With the right imntegreted inventory management software, you can easily carry out all the associated inventory activities at a lower cost. Further, you will ensure the availability of highly demanded products in good quantity. You will have all the products your customers want in the right proportion.
2. Increased visibility in your supply chain
Many businesses are in a partnership with supply chain players for the management of their inventory and product delivery at customer doorstep. You can also move for such a partnership if you are operating your business at a larger sacle. And for this, you need to integret your inventory management systems with the systems of your supplier and third party logistics partner in addition to your back office and accounting systems. This integration will allow you to have an enhanced supply chain visibility.
3. Accurate reports
In your business operation, you have to make many decisions. You can make such decisions when you have the highly accurate information on what you have sold, what is left with you, what profits you have earned, what your financial strength is, etc. By integrating inventory management software, you will have all the requisite reports on your screen with a single click of your laptop/desktop mouse.