Are you worried about stock? Or is the nightmare of shrinkage your new fear? If managing your inventory seems like an uphill battle, you’ve landed in the right direction. Sluggish inventory can wreak havoc on your business; it can lead to overstocking and increase expenses, and overstocked products can become expired or outdated before they are sold. According to the latest reports, more than 81% of customers experience an “out-of-stock” situation in a year. In addition, retailers, on the other hand, have to face a whopping loss of around $1.75 trillion due to poor inventory management.
If you’re still using spreadsheets, and storing your inventories manually on your desktops, then your inventory management process is screaming for an overhaul. Inventory management is tricky; one little bug can disrupt the entire chain and cause a serious data disaster to a growing business. In this article, we’ll talk about a revolutionary ERP software & inventory management system that can bless your poor inventory processes by streamlining them from scratch. Interested? Let’s talk about it more and learn how you can power your inventory operations from one single interface.
Simply put, Inventory management refers to a series of operations that contains ordering, storing, using, and managing a company’s inventory. In the broadest sense, inventory management also includes the management of raw materials, goods, and finished products, as well as logistics and warehousing of such items of a business.
There are different types of inventory management that businesses practice to effectively optimize and control their inventory at all levels; some of them include:
Just-in-time inventory aims to keep inventory levels at a minimum by receiving goods from suppliers just in time for production or customer demand. It reduces holding costs and the risk of excess inventory but requires precise coordination with suppliers and a reliable supply chain.
In ABC analysis, inventory items are categorized into three groups according to their importance and value. For example, Item A is high-value and needs close monitoring. Items B are moderately important, and items C are low-vale that require less attention.
EOQ is a formula-based approach that calculates the optimal order quantity to minimize total inventory costs. It considers factors such as ordering costs, carrying costs, and demand patterns to determine the most cost-effective order quantity and reorder point.
In this approach, the supplier takes responsibility for managing customers’ inventory. The supplier tracks stock levels, initiates replenishment, and provides timely deliveries. This approach provides tighter control over inventory levels and reduces the customer’s inventory management workload.
In consignment inventory, the supplier has ownership of the inventory until it gets sold by the consumers. The supplier replenishes the stock as needed, and the customer pays only for the items sold. This arrangement reduces the customer’s financial risk but requires close cooperation and accurate tracking of sales.
Serialised inventory management involves assigning a unique serial number to each individual item or product unit. It enables precise tracking and control of inventory by monitoring the movement of specific units throughout the supply chain. This is particularly useful for industries with high-value or regulated products.
Powering inventory management system will bless you with many benefits, which include the following-
The inventory management system provides timely paperwork and other key features that promote strict compliance while establishing strict norms. It will give you control and let you take care of the quality requirements you want to establish in your business processes.
Inventory management is the core operation of every e-commerce business. You need to track and manage your network with vendors and suppliers, and inventory management software will help you at all levels. During inventory management, the quality of raw goods and keeping track of batch numbers and inventory becomes easier. Inventory management software will promote the smooth production of your inventory before leaving any room for error.
Hidden expenses are dangerous for any business. There’s a huge investment that happens in the footwear industry because you need manpower and powerful machinery to provide better value to your customers. The out-of-the-box costing, when you’re not aware of the costing module, can bring some serious damage to your fitness. With the inventory management system, you can easily analyze the cash flow and track it at every possible point.
Consumers demand new variety on a regular basis, and manufacturers find it hard to strike a balance between R&D and constant innovation. The inventory management system solves this problem with its intuitive laboratory module, which facilitates simpler R&D while keeping up with the original methods. Inventory management software enables businesses to manage various shoe colors and variants in order to satisfy customer demands.
Having a reliable inventory management interface can help businesses fill orders and track products. This system tracks every product that enters and exists during production, sales, and storage. Many IM interfaces are also point-of-sales, which means that they have the ability to process payments and sales altogether. They can also have the ability to integrate with your existing point-of-sale systems.
The best part of inventory management systems is that they effectively reduce company costs by preventing overstocking. When a company has accurate insights into its inventory, it can track stocks and prevent backorders. Overstocking can lead to unexpected costs, such as overloaded products can take more space in the warehouse and are also vulnerable to getting expired or outdated, as we have discussed earlier.
Adding an inventory management system can significantly reduce various additional costs connected with stocking inventory, such as.
If you’re still fided about adding an inventory management system to your workforce, do not skip this section. Here we have listed a few reasons that you can relate to if you have poor inventory, including the following-
How are your stocks? Do you find yourself running out of stock frequently? Can you find any logical reason behind running out of stock? If this is your condition, you need a highly-advanced and reliable inventory management interface that can provide you with a clear report of your stock to prevent overstock or stock shortage.
Having no clue about how much stock you’re carrying is a red flag. That’s a clear sign that your business needs an inventory management system. With a reliable inventory management system, you can generate reports with just one click to understand exactly how much stock you have.
Manual counting is vulnerable to error, but having a reliable inventory management system can get accurate counting, perform better audits, and manage your stock efficiently. It can become time-consuming and tiresome if you stay glued to manual counts to understand what stock you have. With an automated system, you can easily track your stock and track figures kept by an inventory management system.
Now that you’re acquainted with the inventory management system, it’s time to learn some tips to help you core strong inventory management operations.
Managing inventory management is a never-ending routine task. You must constantly track results, monitor stock levels, and solve any issue. If you have this data, you can easily define your management plans.
Managing all your stock and inventory at once is a daunting task. Start by identifying critical stock and optimizing operations around them.
Safety stock management involves maintaining inventory cushion to ensure businesses can meet customer demand during peak periods or unexpected fluctuations. It’s like having extra supplies of wrapping paper during the holiday season, ample fuel at a gas station, or an abundance of candy in American stores before Halloween. By strategically holding safety stock, businesses safeguard against potential stockouts and keep their customers happy.
In the realm of supply chains, the game has transformed. Gone are the days of disconnected elements operating in isolation. Today, supply chains pulsate with interconnectivity powered by real-time data analytics. This digital magic unveils vital insights on stock levels, precise locations, and accurate delivery times.
Armed with cutting-edge technologies like barcode and QR code scanners, along with ingenious tracking devices, logistics hurdles have been defeated, becoming rare sightings. Real-time data serves as a compass, empowering businesses to swiftly navigate and make informed decisions, ultimately slashing costs across the supply chain. This alchemy yields a greater return on investment and leaves customers spellbound with satisfaction.
You can schedule a free demo of Inventory Management System. If you are looking for Spend Management, Purchase Management Software then you can also contact us.
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