Retailers, wholesalers, restaurants, manufacturers, and service businesses are the ones that had to deal with inventory management every single day. The better you manage the inventory, the smoother your business operations will be. Unfortunately, there are a lot of business owners out there who unable to manage their inventory efficiently.
Improper stock management can influence many things. Not only your business operations, but it will also hurt your company’s finance. Overstocking can risk your slow-moving inventory turned into waste. Otherwise, understocking can hurt your business because you’re out of stock and can’t sell anything.
That’s why the demand for inventory management systems is rising significantly recently. Manual inventory checking and recording with spreadsheets can no longer accommodate the vast amount of items in the warehouse.
In this article, we will dive deeper into inventory management and why your business should implement it right away. But first, let’s take a look at inventory management definition.
What is inventory management?
Inventory management is a method used to manage, store, and adding the stock so that the inventory level is always maintained (no shortage or excess inventory) at the lowest possible cost.
Maintaining the stock level and reduce the inventory cost might sound contradictory. To ensure the customer demand always met, keeping enough items in the warehouse is a must. Therefore, the inventory cost will rise. That’s why inventory management is required.
To achieve the optimal result, a lot of business owners automate their inventory management with help from software, since manually stock management is getting harder and harder each year.
What is inventory management software?
Inventory management software is a tool to monitor inventory items in your warehouse or outlets, such as assets, raw materials, and finished products ready to send to vendors or customers.
To get the best result, we recommend using an integrable with other systems, such as accounting software, purchasing, and CRM. The software enables your company to manage the inventory with little to no effort at all.
The benefits of using a stock management system
As mentioned in the previous paragraph, manually managing your inventory will make you spend a lot of time, labor, and money. But with software, you will gain a lot of benefits. Here are some of them:
You can easily access the inventory data from anywhere around the globe. The system enables you to acknowledge your inventory level anytime you want with a mobile device.
With an inventory management system, you can track the stock level in any of your warehouses in a matter of seconds. It also makes the internal transfer process between warehouses easier.
Controlled stock level
The low stock notification feature frees you from the out of stock worries. The feature will warn you when an item in the warehouse is running low and needs to replenished soon.
The inventory management system will make stock controlling a breeze. Not only that, but stock management software also helps you avoid overstocking. Therefore, you can reduce inventory costs as low as possible.
The stock management system can help you simplify the stock managing activities. For example, creating a monthly or yearly stock report will only take minutes. You can also shorten the amount of time needed for stocktaking, which is impossible to do manually.
With automated stock management, you can put more effort into developing your business or develop better marketing strategies.
Automatic inventory management will save you from unnecessary expenses such as human error, overstocking, purchasing unnecessary items, late delivery compensation, and other risks.
Better customer satisfaction
Fulfilled demands, easier shipments tracking, and better accuracy can make your customer happy. The best customer service can crank up the customer’s trust against your brand.
Higher inventory planning accuracy
A robust stock management software enables you as the business owner to accurate inventory planning. You can acknowledge which merchandise is popular currently, how many items you have to purchase from the vendor next time, which vendor gives you the best offers, and a lot of other things from a comprehensive report.
The inventory management software can help you manage your stock levels automatically. You can use the system to manage your merchandise in the warehouses or your business assets. Recently, not only enterprise-level companies are using the software, but the small and medium level business is starting to use it.
Aside from the price gets more and more affordable, free ERP software such as ClickWork.co opens up opportunities for SME to develop their business with more efficient inventory management.