Inventory Management Software – A Key to Effective Stock Management

Inventory Management Software – A Key to Effective Stock Management

Inventory Management System

Inventory management software is a software system used for keeping track of your inventory items, orders, and deliveries. In industry, to manage your business efficiently, it can be used to create a work order, bills of materials and documents concerning to the production of stock as well as it can be employed in checking overstocking and under stocking. Inventory Management Software stores data in the database which was stored in the form of hard copies previously. Such software system, due to their easy-to-use features, allows you to handle great amounts of data and business efficiently. The efficiency of the system can be broken down into certain factors that enable it.

Basic Inventory Control:

Basic Inventory Control gives a systematic plan to be able to manage and control your inventory across all your sales channels. Most businesses, when start, use spreadsheets to keep track of their inventory because they think that the spreadsheet offers them formulas and graphs; this automatically means to them that they are keeping a good account of their products as this level of automation seems to suffice in the beginning. But as soon as business takes a growing stream, managing inventory using simple spreadsheets starts to become a challenge and very messy, which most times result in the demise of what possibly was a great business plan.

Most businesses, however, have begun to realise how short-sighted humans can be with inadequate technology. As a result, Inventory Management software systems have been making their way into the market as they are tailor-made to aid the business inventories for future growth.

Barcoding & Scanning:

As the business grows, your production grows because the market demands your products, so you always need to be on your toes for any sort of spike in orders. When the order comes in from the retailers they need them at the high-time of a product, so you would need more manpower if the system is not automated which would require you to pay the workers at a disproportionate rate. To avoid this from happening you can instead start using barcode scanners to read inventory barcodes for every product, update it on the Inventory Management Software of its quantity levels using instant communication. Barcode scanners will also helps in eliminating errors in the selection of inventory items for customer orders, basically means, instead of having users enter the item numbers into the system, you would simply scan their barcodes.

Demand Forecasting:

When you have limited resources, you better be careful if they’d dry out before your needs are met. You can get to know which products are low in demand, so you can stop pouring your resources in their production. Using Inventory Management Software, you can learn more than just which products are high in demand and which show anomalies in their sales. Such software systems allow you to get an anatomy of your products and categorise them like colour, scent, or type of material. So you can crack the code of what’s required by breaking it all down into their basic attributes and make connections to figure out which combinations of attributes make the things that are high in demand; this helps you form ideas for new product development as well as deft manipulation and utilisation of the resources. This also helps you keep more accurate levels of inventory and make better decisions about what and how much to buy and make.

Account Integration:

An accounting system usually is not able to do some specialised work, especially one of an inventory management system, but it is necessary for the smooth functioning of a successful business. So, using the Inventory Management Software, you can potentially integrate your account section with the software and make all the records of the audits and transactions in the software connected and seamless. This updated version of your financial status always comes as useful as it helps you make an informed decision for where to spend your money, which products you need to stop producing and which ones should you be caring for as they show an anomaly in their sales. It enables you to easily post to your main database account and keep track of all the business activities within and outside the inventory.

Lot Tracking:

FDA approved products are often the only ones that retailers look for; else their business gets banned. So they are always concerned about the lot tracking system of the production company. If a product gets recalled for some reason, lot tracking allows you to know which items are in stock, being sold and need to be pulled out from your inventory. You can also track which customers of yours already have a product from that lot so that you can find out the customer and notify them not to use it. Tracking of a product can be done on raw material, finished the good level or both, whichever your business seems fit. The Inventory Management Software helps you control the lot tracking by using a few details and using that to identify certain products, so in case inspection is required of any product by the FDA you will have full details and traceability readily available to issue.

Support for kits (kitting or assembly):

Most of the retailers tend to have an added kit or bundles to their product mix, meaning the product for sale is not one single item but comprises of more than one product sold together as a kit or assembly item, or collection of a few items that complement each other. This might seem easy to manage from the retailer’s point of view, but from the inventory’s standpoint, the management is a little complex. Because in an inventory, in case of no automation, you need to figure out which product is placed where, then package them together differently and then maintain a record of which products have been sent, and all of that being done in a fatiguing manual way. The Inventory Management Software allows you to define recipes of your kits and then manage the stock levels of each kit as well as containing recipes.

The Inventory Management Software helps you regulate your business in an effective way because of the compact way that it keeps the information. It also gives you an analysis of the data that you have for future purposes by extrapolating the current data. To succinctly put, it makes your business run smoother, faster and better if it is used to its fullest, and smart decisions are made when required.