Published on June 25th, 2018 | by Sunit Nandi0
Key Benefits of Inventory Management Software
Whether you perform it manually or you use a computerized solution, the inventory process is the same. Basically, this process implies making a list of your stock, its location and value. This process is essential in order to be able to satisfy the demands of your clients, and to prevent a business from wasting money on unpopular products. However, while the process itself is always the same, its outcome can be different based on the management system that you use. Classic pen and paper inventory is prone to numerous errors and its data can’t be properly processed. Small businesses tend to stick to manual inventory, in order not to waste money on software solutions, but a good inventory app can actually help you save a lot of money. If you are still not convinced, the following lines will surely convince you to upgrade your system with a modern software solution.
It saves time
Manual inventory requires warehouse staff to constantly communicate with the sales team to make sure that each transaction is properly recorded. However, with a inventory management software, this task is automated, and this makes it a lot easier to keep the proper stock levels for each product. This saves precious time, time which can be spent on more fruitful work activities.
It allows for proper data processing
Processing the data from your inventory is essential for sales and stock forecasting. If your inventory is recorded on paper, data processing is close to impossible. Sure, you could always record it in an Excel spreadsheet, but even this method has limited processing options, not to mention that it is also time consuming. Modern inventory apps on the other hand have specific features that allow you to easily process the data from your inventory and present it in an easy to read manner.
It minimizes errors
Human error can never be prevented, but when you use a good software, you will minimize the chances for error, since the tasks of your employees are better organized, and many redundant tasks are automated. A good app will automatically update records and create reports, so there are fewer ways in which your employees can make mistakes that can cost your business money.
It optimizes sales
Based on your forecasts, you can program an inventory software to send alerts when you must order important products or when you must change your par levels during special holidays or promotional periods.
It eliminates paperwork
A good inventory software solution should come with mobile apps that are automatically synced with the main system. This way, warehouse employees can use mobile devices to scan barcodes when picking items from the warehouse. This way, you eliminate most of the warehouse paperwork, and you also eliminate another possible human error situation.
It improves communication
Sharing information between various staff members is essential for the success of any business. However, the information process can be very troublesome when you perform manual inventory. On the other hand, if you use a good software tool, your staff can share valuable information effortlessly and in real time.
If you are currently using other software solutions for accounting, for ecommerce, for customer loyalty or for shipping, you can easily integrate those tools with your inventory system. This will minimize bookkeeping costs and it will save precious time. However, keep in mind that not all apps are compatible with one another, so make sure either choose an app that is compatible with your current systems, or choose a software provider with a good tech team that can handle the integration for you.
As you can see, a computerized inventory system can bring you numerous benefits and it can significantly affect the growth of your business. Obviously enough, no system is perfect, and it is possible to deal with some unexpected scenarios from time to time, such as a system failure, so make sure to always plan for the unexpected. Nonetheless, in the long run, a software solution is way more efficient than manual inventory.