Inventory management is essential for all businesses. Managing inventory at optimal levels is essential, as inventory fluctuations cannot always be predicted. In these scenarios it is vital to ensure that all your cash is not stuck in the form of inventory. There are many companies, which do not opt for specialized inventory management software, but inventory goof ups are too expensive for companies to ignore in the long run.
Every product-based businesses have inventories to be managed. Some have perishable inventory whereas some companies have inventory that costs a fortune. For B2C companies, inventory theft by customers in the store is a constant problem. For B2B companies, employee theft is a commonly known issue.At times many of them have inventory software which is a part of the accounting software or retail store management software, but in many cases there arises the need for a specialized inventory management software.
In today’s time and age, wholesalers, retailers, eCommerce traders and manufacturers choose inventory management software to simplify inventory and grow their business. Here are a few reasons why your company needs specialized inventory management software:
1. Easy & Real Time Inventory Management
The first obvious benefit of having specialized software is better control over inventory with real time inventory status. Thus, if you have fast moving products on the shelf, a view of your immediate stock can be beneficial. Moreover, the option to view the history of items received and sold along with returns can make inventory management easier for all the employees. Moreover it also allows barcode scanning of products, which reduces the time taken to register it in the system.If your inventory is spread across multiple locations, your employees can view inventory by location with specialized inventory software. Also if you are a company selling both online and offline network you should have a specialized software to centrally manage inflows & outflows of inventory from both network.
2. Managing Finances
Inventories constitute a big chunk of current assets of any company. They help determine the profitability of the company. Current ratio, quick ratio, inventory turnover ratio clearly point out the importance of inventory with regards to the financial position of the company.
The first and foremost thing that you will be able to achieve with inventory software is monitoring cost of buying inventory. Furthermore you can automate recurring orders and also generate bills for sales and purchase orders. For the companies who regularly import inventory and export goods or vise a versa needs to keep a close watch on international currency exchange rate, a small calculation error can affect business decisions & profits dramatically. An Inventory software can easily manage multiple currencies and international contracts for companies. Also the companies having more number of ingredients used in manufacturing process should have a specialized inventory management software. See Infographic on Manage your Multichannel eCommerce with Inventory Management Software
3. Database Management
Inventory Database management is very important when it comes to huge variety of products. The inventory management system can store images of the products that employees are dealing with. This can give them a clear idea in case of wrong delivery or if the inventory has gone bad of perishable products. Moreover employees can also add notes with regards to the condition of the inventory such as, when it was received or dispatched or details regarding storage conditions or any special notes that pertain to any particular product. Furthermore, if the products are sold online, a URL can be added to the inventory details. Along with it, the details of the suppliers and customer details can also be stored for easy reference. Since all processes are automated, there are zero chances of human errors in inventory counting.
4. Control Inventory Theft
Many companies lose millions due to Inventory theft. With an inventory management system one can effectively reduce the number of internal thefts and eliminate these costs. Since a computer based system is accurate and monitors all activities related to inventory, it is easy for the system to identify loopholes or theft. The system can effectively catch suspicious behavior and can warn the management regarding the same when certain inventory goes missing. The software makes it impossible to hide a counting error in inventory and therefore making it very difficult for employees to steal it. By adapting to a computerized inventory system, companies can definitely cut their losses from theft.
5. Flexibility of Cloud Computing
With cloud computing, you can access your inventory levels on the go. Therefore, even if you are not in your warehouse but are travelling, you can still see how fast your inventory is moving and what orders you need to place. You can access the inventory data practically anywhere, anytime, even on your smartphone. This system works great if you are an entrepreneur who personally manages most of the supply chain and inventory. On top of that, if you ever lose the inventory data on your system, you will always have a backup.
An inventory management software is easy to use software and can be easily taught to employees working in the supply chain of the company. With so many obvious benefits of the system, there is no reason for any company to ignore this software. Still if you have any doubt you can connect with an Inventory management software analyst at softwaresuggest.com. You can view pictorial form of this article in this infographic.