Why Do Enterprises Need To Invest In An Inventory Management System?
- by eSellerHub
Are you still using manual inventory tracking procedures for your business?
Does your team spend a lot of time managing the excel sheets for inventory?
Gone are the days when business owners and warehouse supervisors had to spend hours updating their spreadsheets for inventory. With the right custom-built inventory management system matching your exact business needs, you can save a lot of time, effort, and money. One can even reduce the human errors with inventory management solutions.
Some Known Facts about Inventory:
- 43% of small businesses in the USA don’t track inventory and use a manual system for inventory management.
- 34% of businesses ship an order late because they sold a product by mistake that was not available in stock.
- Reducing overstocks and stock-outs can reduce your operational costs by 10 percent.
John owned an online store selling beauty products and equipment. His company had to stock up thousands of products in different categories and manage inventories for the same. As they had been managing the stocks and orders in excel sheets, it was quite difficult for the staff members to get real-time information about inventory. This resulted in stockouts and overselling, which was not a good sign for their business.
They were losing customers and so, they wanted to switch to an automated inventory management system that provides accurate, real-time information about the supply chain and streamline the order fulfillment process. They invested in a custom inventory management system and once the team started using it, they could optimize and streamline procurements, order delivery, and stock management easily. Inventory management helped them keep accurate records of the stock as it provided a centralized view of stock. It also helped them manage effective planning and forecasting by analyzing data trends.
It is important to receive and find the right stock to fulfill the orders successfully. Inventory management enhances the business operations by offering an easy way to keep a track of your stock levels and ensure that you never run out of a product.
Whether you run an ecommerce website or own a retail store, you may find it time-consuming and tedious to manage your inventory. Hence, a software tool with the right features can be the best way to eliminate headaches and gain better insights about your business processes. With the emergence of new technologies, automated programs can streamline the tasks, check different metrics, and get a complete picture of detailed analytics and reporting also.
Let’s explore some of the major benefits of Inventory management solutions:
Automated Inventory Management
One of the most obvious advantages of inventory management is automation. Automation eliminates the risk of human errors, and helps you save a lot of time. Repetitive tasks can be executed with ease without any hassles by adding the rules into the system. Business owners and stakeholders get real-time visibility on the stocks and sales, even if you have multiple locations.
Some businesses may use inventory management solutions for peace of mind, while a few others rely on the data for enhanced visibility. For instance, the customers may have bought the products but they may actually be out of stock at your warehouse. This may result in dissatisfied customers who may get frustrated because of the delay in order or cancellations. Another example could be related to order procurement. Your team can place orders for the products that have low quantities and high demand. As the purchase department gets real-time updates about the available goods, they can order more products to close more deals.
Improves Sales Velocity
Poor inventory management may result in a low turnover. Companies look for reducing the risk of overstocking and understocking. They look for efficient ways for higher inventory velocity. They demand inventory operations where products are sold quickly and inventory does not sit in fulfillment centers for a longer period of time. Keeping accurate records of inventory and sales helps companies make strategic business decisions by evaluating product effectiveness. We can help you get custom inventory management software development for strong demand forecasting and sales processes resulting in more revenue with less expenses and losses.
Enhanced Productivity and Efficiency
Businesses that use modern inventory management systems witness higher efficiency and productivity. As there would be less human errors and accurate data, it becomes easy for businesses to fill the orders correctly and quickly. With the right kind of inventory management solution, you can simplify various work processes. This would result in enhanced business efficiency and productivity. As inventory management involves accurate record keeping using various types of tools and devices, it makes the entire inventory operation more efficient. The employees can focus on other important tasks as inventory management and supply chain management would be taken care of by integrated systems.
Prevent stock outs and overselling
Overselling is a major challenge for the ecommerce industry. When you don’t have accurate data for your inventory, the products may get out of stock but the same products can be visible on your website or ecommerce portals. An inventory management system can help you manage the stock, orders, and prevent overselling.
Addition of new sales channels easily
Do you wish to add new sales channels to the list of particular products? If you want to add more products under different categories, an inventory management solution can help. It centralizes your inventory and offers real-time visibility, even if the products are located at multiple places. Features related to real time inventory tracking and sales forecasting help you manage the new sales channels without any difficulties.
Manage multiple locations
Nowadays, large businesses find it difficult and tedious to manage inventory at warehouses situated at multiple locations. It may not be feasible to carry out stock control manually if you have multiple locations. Inventory management software can connect multiple warehouses at different locations by providing a bird eye view of the supply chain. You should choose software that monitors all the movements made in various facilities, ensures speedier deliveries, tracks inventory at each location accurately, and creates multi-location forecasting.
If you need help with inventory or warehouse management solutions, get in touch with us and we will help you understand how our software development solutions can help you streamline your business operations and increase profitability.