One of the biggest challenges of growing your business is managing your inventory.
You can easily manage a small inventory with manual bookkeeping or maybe a spreadsheet when starting. However, as your business and order volume grow and you expand into new markets, attempting to manage your inventory operations becomes impossible manually.
Not only can it become a hassle, but it can also be a significant barrier to your business’s growth and success. This is where effective inventory management and tracking system becomes beneficial.
As its name implies, an inventory management system refers to the technology that governs how you approach your inventory management. Moreover, it allows you to track and manage your products throughout your entire supply chain, from the purchases to the end sales.
This article will further discuss the whys of your business’s reliable inventory management and tracking system.
Simplified Inventory Management
Perhaps the most obvious benefit to using an inventory management and tracking solution is that it makes the whole process of handling your inventory a lot easier, more convenient, and more efficient. This causes you to save time and money.
With supply and demand changing every single day and your stock levels fluctuating to accommodate those changes, an inventory management system can help automate your process to keep up with daily demands in your warehouse.
Using an inventory management system, you can eliminate manual and labor-intensive processes like typing inbox numbers or product numbers individually. By automating these processes and tasks, you can free up employee resources and spend their time on more important work in your business.
With an organized and systematic inventory management system, you get more things done in less time.
Using software can help manage your inventory that cuts down the time it takes to process, track, and audit your products. With a single and real-time interface, you can check the stock amounts on all your business inventory, follow what is selling, connect to payment apps for purchase orders and invoicing, find vendor information, and so much more.
Improved Inventory Tracking Accuracy
Some inventory management system comes with technological innovations that allow for more streamlined and accurate product tracking.
For instance, radio frequency identification or RFIDs has become increasingly common in warehouse environments to track and trace inventory. RFIDs can be used to eliminate or reduce the need for hand-scanning. In addition, it prevents data duplication, transcription errors, and ‘missed items’ when used to track large numbers of products simultaneously.
This will result in significant and immediate improvement in your inventory tracking and management.
If you’re interested in increasing the accuracy of inventory tracking in your warehouse, consider an RFID-enabled system. It would be best to work with companies like Lowry Solutions, which offers expertise in RFID inventory tracking software to ensure quality and efficiency in handling inventory tracking demands. You can click here for an RFID inventory management system.
By streamlining your inventory management and tracking process, you can save money and cost in your daily operations. For one, it can help improve and shorten your supplier’s lead time with better supplier management relationships. Also, in connection with the previous point, better accuracy helps in reducing obsolete and excess stock, not to mention the costs incurred.
However, automation is perhaps the most significant cost-saving with an inventory management system. Automating your manual processes can prevent poor inventory management, avoiding errors such as overstocks and stock-outs that can cause significant revenue losses.
Prevent Over- Or Under-Stocking
With regards to overstocks and stock-outs, an inventory management system can help you maintain the right balance in your warehouse.
Too much stock can take up valuable warehouse space and incur unnecessary charges. Meanwhile, too little supply can lead to stock-outs causing potential loss of sales and unhappy customers.
With inventory management and tracking software, you can track low stock levels and identify your re-order points for each product you have. This can avoid the occurrence of stock-outs or overstocks.
In addition, suppose you’re unsure how to set up or calculate a re-order point. In that case, most inventory management systems use formulas and previous data from your company to calculate them for you automatically.
Happy And Satisfied Customers
Happy customers mean a happy business. Furthermore, an inventory management system can help boost your name in the eyes of your customer by improving your services.
As mentioned before, an inventory management and tracking system can help increase inventory accuracy. This ensures that the right product is delivered to the right place. Moreover, by automating tasks, those items are also provided to customers faster.
Some software even has real-time update features that notify customers about their shipment, including time arrival estimation. This gives your customers the tools to determine when their products are set to arrive, reducing their worries and saving you from answering questions about their product shipment.
As a result, you can expect a significant increase in customer satisfaction that ultimately benefits your business’s bottom line.
Enhance Inventory Forecasting
A reliable inventory management system can help produce valuable sales necessary in making more data-driven business decisions.
For instance, if you fully understand the law of supply and demand, you can also anticipate sale trends. This gives the business a competitive edge and can reduce operational costs.
Most inventory management and tracking systems are equipped with tools such as reporting and inventory metrics that you can use to make strategic decisions.
In addition, with these analytics and data, you can work out your inventory turnover rate while also identifying opportunities for reducing the amount of inventory you’re holding in your warehouse as well as lowering inventory carrying costs.
Running an effective inventory management operation can be a challenging task. Fortunately, there is software out there that can take a lot of the hassle out of the process.
Using a specialized inventory management system and considering the benefits mentioned above can help you get on top of your business’s busy daily operation and allow you to stay competitive in your specific industry.
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.