You start your day at work and immediately notice something’s wrong at the warehouse. Things aren’t right in your business’ retail operation. The first order comes in, and, from that, problems come piling up, one after the other. You are out of stock, and products are lying around, unorganized. It seems like it’s high time for you to seek help managing your business.
Running an efficient inventory management operation is no easy task. But technology has your back. There is software launched to help ease your burden in monitoring stocks coming in and out of your warehouse. Provided below are the advantages of using inventory management software in your business.
Table of Contents
Advantages of Inventory Management Software
An inventory management system’s primary purpose is to ensure enough stock to meet customers’ demands without excesses. Efficient and accurate inventory management software like Fishbowl is one of the key components in running a successful business. Regularly tracking stocks can help you avoid future problems and complications.
Improved Inventory Accuracy
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With a systematized inventory management software, you’ll have an overview of the number of stocks available. This way, you’ll know what needs to be ordered or not when meeting customers’ demands at a given time.
Avoid Stockouts and Excess Stocks
Improved business planning and management help you minimize, or ultimately avoid, days with stockouts. Having too many stocks left in your inventory isn’t also a good thing for you. But with the help of software, you’ll have nothing to worry about anymore.
Avoid Overselling
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Having inventory management software to keep you reminded, you can track what goods/products are still available. The software also lists all the backorders; this way, you can avoid overselling altogether.
Cost Savings
As long as your stock remains unsold, it will cost you money. Your business’s carrying costs may include storage handling and transportation fees, employee salaries, and insurance fees. The longer your inventory stays at the warehouse, the more it’s at risk of theft or loss from circumstances such as natural disasters.
Better Warehouse Organization
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Having an efficient warehouse filled with goods/products organized depending on customers’ demand can make business transactions go smoothly. As the owner, you’ll know which of your products are sold together. This system helps you reduce labor costs and, thus, speeds customers’ order fulfillment.
More Productivity
Systematized inventory management software solutions help you save time that you could spend on other business-related affairs such as negotiating with suppliers. This way, you can have more efficient and productive business hours ahead of you.
Negotiate Better Terms With Suppliers
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Inventory management software is efficient in providing growing businesses comprehensive insights about the products they should sell. It also calculates the volume your orders require. You may use this knowledge to negotiate better prices and terms with your suppliers. This way, you can receive discounts and rewards that benefit your business.
Generate More Profits
When you understand your business’ availability and demand better, it more likely leads to higher inventory turnover. This occurrence is a great sign of increased profits coming your way.
Better Customer Relationship
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Once customers receive what they order, their satisfaction will lead them to become more loyal to your products and services. With inventory management software tracking orders and shipments for you, you’ll have nothing to worry about losing patrons.
Inventory Management Software Features to Look for
As there are different types of businesses out there, so are the features of inventory management software. Depending on your needs, you’ll have to consider which software services can help you the most. Nonetheless, you can find the following features in most inventory management software.
Inventory Analytics and Reports
Systematized inventory management software can help you keep track of the products that go in and out of your warehouse. The software provides you daily analytic reports that allow owners like you to better understand how your business operates.
Receiving updated reports daily also helps you spot areas where you can improve inventory management. Say, for example, is your business losing profit on waste, and if so, how can you cut expenses down? Or, are your inventories currently understocked? Being informed on things such as the above can empower business owners like you to make better decisions.
Real-Time Inventory Tracking
Inventory management software has a real-time tracking feature that helps you keep track of inventories at any time of the day. This feature is highly effective for businesses with higher turnover rates. As a business owner, you need to track goods/products to see which items are selling fast and make orders as soon as possible before going out of stock.
Software with real-time tracking updates users through alerts when a specific item is about to run out. By sending you real-time notifications in cases like this, you can make orders with your suppliers right away to meet demands.
Stock Projections
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Inventory management software that provides daily stock projections can provide business owners/managers with an overview of the amount of stock needed at a given time frame. Having this information to assist your judgment, you can purchase enough products from the supplier without running into the possibility of excess stocks.
Cloud-Based/Multiple Device Support
When choosing inventory management software for your growing business, you need to choose one that is cloud-based. This feature makes sure that all system-generated updates are automatically reflected within your company. In return, it gives managers free access to updated inventory data, making the operation more efficient.
Having the inventory data available on multiple devices, like smartphones, PCs, and tablets, can help you and your staff monitor inventory wherever you all are. Features such as this work best with small-scale, startup businesses that didn’t appoint departments yet.
Performs Stock Counts
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Every inventory management system requires stock counts. Systematized inventory management software is essential to make counting stocks way easier. This helps business owners like you keep track of everything in your inventory. Some software automatically sets variable count frequencies for several products to avoid confusion.
Conclusion
Having inventory management software to assist you in managing your inventory makes your job way more manageable. With features to make the system more efficient, expect a more organized and productive retail process.
