We already know that an Inventory Management System can be extremely beneficial for your business. It is a fruit of advanced technology that can enable you to utilize everything – from your stock, funds, space, time, to manpower -- better, take more informed and well calculated decisions, come up with smarter strategies, reduce costs, increase profits, and more. Let us delve deeper into this matter to find out in how many profitable ways an Inventory Management System can come to the aid of your ROI.
You know how research-savvy today’s shoppers are. They conduct a lot of checking prior to, or even at the time of carrying out a purchase. As per reports, about 40% of in-store retail sales get influenced by mobile research, whereas about 50% of online shoppers search for products on marketplace sites.
Retailers, on their part, are intent on attracting as many customers as they can. They, therefore, are doing their best to promote products not only across various platforms, but also in retail spaces in brick and mortar stores.
However, retailers can be posed with a very unusual challenge, here. They have to manage the inventory sold via several platforms, in real time, efficiently as well as effectively. Keeping an accurate stock count alone cannot suffice; they need to make sure that they have enough display on the virtual shelves, while not wasting space on items that are not saleable anymore.
An Inventory Management System can come to the rescue here.
Management Of Cycle Stock Inventory
Cycle Stock Inventory Management involves managing that part of the inventory that is cycled through to enable a seller to meet orders. New items are brought to replace the ones that get sold. It is not as simple a process as it might sound, though. Inventory can be moving constantly. Demands might alter. Times might change. Managing Cycle Stock Inventory keeping such – and more – variables under consideration can be a tricky job, especially if ventured to handle manually. An Inventory Management System can help to minimize, or even completely eliminate, errors that humans can commit, or overlook. Data Analysis can help this aspect of Inventory Management to reach the level of a science.
Maintenance Of Accurate Inventory
Keeping an accurate count of stock can get somewhat challenging, when products are constantly moving to and from a storage space, or a warehouse. To combat this kind of a challenging situation, there are businesses that count a particular set of inventory on a particular day. This process is known as Cycle Counting. Through this process, the accuracy of an inventory can be gauged minus a thorough inventory audit every time.
Forecasting Of Demand
An accurate forecast of demand is extremely crucial for the development of a business and its reputation. Over supply, or under supply of inventory can impact a business adversely. If you invest too much of money on the wrong inventory, your money can remain tied up to something that is not too productive. In the same manner, if you do not invest sufficient money on inventory that is, or can be, in demand, you might end up losing a lot of business to your rival enterprises. You might even be struggling to fill orders if you under-invest in stock items that are high in popularity.
A dynamic min / max inventory ordering method has enabled certain companies to maintain the right levels of stock in their warehouses, following performance-based triggers.
Organization Of Storage
If a storage space or a warehouse is not effectively organized, it can hamper productivity. It might take your employees a long time to find products for fulfilling orders. Not only can this waste precious work time, but it can also dissatisfy customers by having kept them waiting. It can hold up work, and responses, if you cannot say for sure whether you have a certain product or not in the first place, for an order to be fulfilled.
Storage spaces can be rendered immensely efficient if a standardized, systematic sorting process gets implemented.
These are just a few challenging situations that an Inventory Management System can enable you to handle, and emerge a winner.
Inventory Management System Can Maintain Records
Inventory and Procurement Management Solutions can assist you in having a clear idea of your current stock, demand, and procurement status – all in real time. It can handle multiple warehouses at one time, too. An Inventory Management System can notify the managers when raw materials begin to deplete, so that orders can get placed with the distributors on time.
Whenever clients place orders for products, an Inventory System can give you the correct information regarding how much of stock is ready with you.
Inventory Management System Can Improve Production
An Inventory Management System can keep a sound account of every item necessary for production, preventing any kind of interruption in the process of production. Errors might take place in the case of manual inventory management; and any kind of error can delay,or suspend the process of production.
Inventory Management System Can Augment Customer Satisfaction
You can satisfy clients by fulfilling their demands on time. The more clients you satisfy and impress, the better can the reputation and market standing of your business be. The more satisfied customers you have, the more number of orders can you receive. Your company can also get excellent reviews, ratings, and word of mouth publicity.
Inventory Management System Can Enable Efficient Processing Of Fresh Orders
Fresh orders can be processed efficiently by an Inventory Management System, as an automatic Inventory Management System can be interlinked with systems of other departments. A channel can exist between the orders from clients, and the fulfillment of those orders. The company and clients can rest assured that orders can be supplied on time.
Inventory Management System Can Reduce The Need For More Manpower
With an Inventory Management System in place, your company may not find the need to employ people for making reports, keeping records, updating orders, delivery, and so on.
You can save a lot of cash, time, efforts, and more.
Your Business Can Grow Smoother
You want your online business to grow and spread, right? You shall require an Inventory Management System to help you progress. Managing all your operations manually can prove next to impossible as your orders increase in volume, your business expands across numerous sales channels, and you enter fresh markets. Trying to manage things manually can lead to human errors like overselling. Such errors can cause your reputation damage, and you, marketplace suspension. An Inventory Management System can help you avoid such situations.
Automation can make your work a lot quicker, simpler, and even more economical.
Your Business Negotiations Can Improve
An Inventory and Order Management Software can be capable of batch tracking. This can improve your product traceability. Your negotiation with suppliers can improve, as a result of all this. You can trace which suppliers are helping your business progress, and where there is improvement required. Your trading terms and exclusivity deals can thus get smarter.
Basically, an Inventory Management System can do your business an immense lot of good – not just in these New Normal times, but in all times to come.
In case you want to know more about Inventory Management System, clear your doubts associated with it, want certain questions pertaining to Inventory Management System answered, or even have some ideas that you want to turn into reality, you are absolutely welcome to get in touch with us for a friendly discussion about it all. Yes – a free consultation. It would be our pleasure to share our experience and expertise of over a decade with you.
We can provide you with completely customized software solutions.
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