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Inventory is one of the crucial element of any business that deals with product storage, orders, sales and deliveries. The wave of COVID – 19 is no more, despite there are several industries facing the challenges of inventory management.
According to the Economist Intelligence Unit (EIU), organizations has experienced an annual decrease in their revenue of 8% to 9% because of supply chain problem.
To overcome inventory related challenges, implementation of inventory management software can help in several ways. Whether it is about ensuring order fulfillment, overseeing large number of inventories, improved decision making, real-time inventory tracking, or fulfill customer demands; staying on the top of your inventory will let you generate sales without any hassles.
Introduction to Inventory Management Software?
Inventory management software is a tool developed that enables businesses to manage their inventory levels, monitor sales, and stock availability, and allow overall control of inventories. The software delivers a centralized platform to track data, automate inventory tasks, and help business control across multiple warehouse locations. Businesses of all shapes and sizes can implement inventory management software to manage their inventory efficiently. Inventory tracking is a boon for businesses as it helps to spot sales trends, track recalled products, provide product sell insights, and optimize stock levels.
Inventory Management Challenges Business Faces
Managing and organizing inventories is a convoluted process that involves several aspects. When it comes to manage it manually, there are chances of causing errors which may result in financial loss.
Following are some issues with manual inventory management process:
Overstocking – Overstocking is when there exists heavy amount of inventory in store and warehouse. Overstocking is a not a considerable choice as you have to pay more for additional space. Moreover, unless your stock gets cleared, the amount you have putted is tied-up. Keeping overstock can also leads to product spoil.
Out of Stocks
Out of stock means not having a sufficient amount of goods in stock. Such type of situation can be an obstacle in the production process which may result in delays or even failure to deliver orders. Alternatively, if can also cause a loss of revenue which will also lead to dissatisfying customer experience who are looking to purchase the product from your website.
Disconnected systems in the supply chain can be the reason for errors and unstable decisions. Also, if you manage multiple warehouse and manufacturing units, the unorganized flow of data leads to a lack of what’s ongoing in your business process.
To avoid in any type of inconsistency in product’s stock levels, businesses are required to evaluate inventory count to keep track of what’s in the store. However, manual inventory count is long hour process which obviously has possibility of errors. Such errors may result in loss of stocks.
An unorganized warehouse is a common situation several warehouse owners face on daily basis. Due to improper labeling, storage conditions, and low-capacity staff. These issues can result in the loss of time, increase the possibility of product damages, or even loss of items.
Benefits of Inventory Management Software for Businesses
Implementing inventory management software can help you save your capital and maintain an accurate stock count. Along with the challenges you have read above, here are the benefits of inventory software to streamline your overall business process.
By integrating inventory management software, you can take better control of your inventories by keeping track of it in real time. Inventory software provides information on the product's location and how it is operational within the system. As a result, it eliminates any human errors that may occur during manual management.
Inventory management software provides a comprehensive inventory record and simplifies the reordering process which is its primary benefits. Additionally, it offers sales data that helps in determining when to reorder a product. Moreover, this software can be programmed to order the required quantity of products to avoid any dead stock accumulation for a prolonged time duration.
Prevention of stock overselling
In businesses, particularly eCommerce businesses, often face the challenge of overselling. If you do not have an accurate understanding of your inventory, it can be easy to run out of products. This can fail to meet customer demand and, in some cases, suspension from marketplaces. To avoid this, inventory management software can assist in monitoring demand and determining whether current stock levels are sufficient. This enables you to know when and how much to restock.
Improved Decision Making
Inventory management software provides comprehensive data that allows you to make informed decisions. With strategic planning and automated reporting, the software enables businesses to effectively forecast for the future and make data-driven choices.
Improved supply chain
The nature of supply chain operations often entails unforeseen challenges. However, with the implementation of custom inventory management software, retailers can effectively plan a strategy for diversifying their supply chain.
By utilizing the data collected on your inventory stocks, you can minimize the possibility of extensive waiting periods if a supplier is incapable of fulfilling orders on time.
Furthermore, this allows you to be prepared for the peak seasons in advance to maintain the appropriate amount of stock levels in your warehouse. Such proactive measures can significantly reduce operational risks and enhance your overall efficiency.
Manage multiple warehouse
Typically, major corporations are the initial users of inventory software. This is because the key advantages of inventory management software revolve around linking various warehouses and consolidating diverse data points into a unified platform.
These software solutions offer a comprehensive overview of the supply chain, enabling efficient tracking of stock movement between various warehouse locations. This allows for timely replenishment of low stock by ordering from alternate locations. The inventory management software provides accurate information on the availability, quantity, and pricing of products across different warehouse locations.
To Wrap Up
For businesses implementing inventory management software is a boon as it automates the business process, cuts down labor costs, and product accurate stock counts.
Now when it comes to considering software, customized inventory has an edge over off-the-shelf solutions. Off-the-shelf solutions lack control over changes and fail to fulfill your business-centric needs, custom software is what you need to manage and control everything as needed.
And that’s where IBR InfoTech excels. We as an enterprise software development company have assisted multiple brands to develop and implement custom inventory management software solutions.
We can make a change for your business too. Post your project requirement. And connect with us.