Inventory management is essential for business it can play a crucial role in saving cost and avoid unnecessary expenses. An automated inventory management software can help organizations in several ways as it can keep track of orders, inventory, sales, and purchases, how much inventory is left in the stock, and alerts you when your inventory level is below the defined level. Other than this it also makes your daily operation more organized and streamlined.
There is no doubt that inventory management software adds value to the firm. But
What is inventory management anyway?
Inventory can be raw material, finished goods, or some MRO (maintenance repair operation) products. Inventory is essential for business or it can be a source of generating revenue! Basically, it is a process of sourcing, storing inventory for the purpose of selling. Inventory management is the process of managing inventory at the right level in the location at the right time in the right quantity.
Below we have mentioned some important function of inventory management software that you should be looking for!
- Enhancing productivity – When you perform activities manually you will end up counting the wrong inventory number. Thus, you need to automate the process. By automating the regular manual task needed by inventory management software, productivity and efficiency can be improved to optimize your company’s growth. It also saves countless hours and the app also offers the ability to track inventory, manage inventory, dispatch inventory from the dashboard.
According to Statista, “Revenue in the Supply Chain Management Software segment is projected to reach US$17,144.51m in 2021. Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 6.5%, resulting in a market volume of US$22,082.52m by 2025.”
- Avoid stock issues – We know that managing stock is the main concern but most organizations lack in doing it. Most of the time they either have too much stock or they don’t have stock at all. It is important to understand that both of these issues only lead to business loss. How? If you are not able to finish the stock that stock will be wasted and your business will suffer from loss, incase if you do not have stock then you will lose potential customer & we know that it leads to business loss.
However, with the automated inventory management software, you can set reorder level through which you can define a reorder inventory level. In which whenever the inventory goes below the defined level your team will be notified about the inventory level and the process will be refilled for inventory.
- Real-time information reporting – Reports have their own importance in business. They help in making crucial business decisions. These decisions are based on precise information not on assumption. When you make decisions based on assumptions it will be not effective. Real-time information has a very critical role to play.
For instance, if you have too much inventory then you will receive real-time notification then you can return inventory to the manufacturer or send the inventory to some other warehouse.
Similarly, when some specific product is selling quickly then you will be notified about the same. So that you can prepare or bring some more quantity of stock. It also let you know how much stock you have in real time & for how much time it will sufficient. You can know these types of things with real time function.
- Analyzing trends – An ideal inventory management software assists you in analyzing trends. Accurate data and statistics are helpful in letting you know your customers especially when you are into the retail business. Trend analytics allows you to prepare for the future so that you can increase your sales numbers.
Furthermore, it is also helpful in identifying inventory that is not doing good. When you are aware of these types of analytics so you are in a position to make good and effective decisions.
When you keep track of trends, it can give your organization an extra edge compared to your competitors. It is also beneficial in minimizing expenses. It is important for all businesses to focus on trends otherwise the competition will impact your business.
Conclusion – Inventory management is important for a business such as retail, logistics, manufacturing, etc. It is also significant for warehouse, supply chain management. Inventory is essential for performing functions such as purchasing, sales at different-different levels, production levels as well.
Inventory management may seem simple job although it is just managing inventory at the right levels. However, it is very complicated because there are a lot of factors that need to be considered before purchasing inventory. This is where the most mistake occurs. In order to avoid these mistakes, asset management software or inventory management is essential. This software has the capability to take your business to the top. For business growth this software is critical.