When it comes to running a successful business, proper inventory management is vital.
There are hundreds of inventory management software options to choose from, but which one is best for your business? The answer is different for every business, so take some time to decide what features you need.
A system in Place
Proper inventory management requires a sophisticated system. You'll want to have a system that can recognize and handle bundles. This is crucial if you're running multiple locations. The best system will traverse between all locations and provide you with a clear view of where each stock is located. It'll also make stock transfers simple and record all movements in real-time.
Choosing an Inventory Management System
When choosing an Inventory Management system, you must consider whether the software integrates with your accounting system. If you do not have integrated accounting, you can't be sure how accurate your finances are. Inventory management is not only necessary for pure B2C retailers; manufacturers also need an inventory tracking system to keep track of raw materials used in assembly processes. You should consider all of these factors when selecting an inventory tracking system for your business. In addition to tracking raw materials, your inventory tracking software should handle assembly processes.
Types and Purpose of Inventory Management system
There are two types of inventory management systems: periodic and perpetual. Periodic systems require the physical count at the end of a period, while perpetual systems update balances constantly. A periodic system works better for smaller businesses than a perpetual inventory system.
A perpetual inventory system leverages automated software solutions and updates balances in real-time with handheld devices or RFID tags. For best results, choose a system that will fit your business needs and budget.
Manual low-tech inventory management involves tracking inventory manually. This approach is popular with new or small retailers. This method requires that each sale or delivery be recorded in a ledger. It is inexpensive and allows a business to reference previous sales.
Regardless of the type of inventory system you choose, you should make sure that you're getting the best value for your money. Most inventory systems are not cheap, and you can often find a more cost-effective model if you know how to choose the right features. Here are some of the most common features of a good system. Know which features are important to you and which ones are optional. And remember to keep track of the last transactions!