Inventory Management for Businesses
Whenever you think of establishing your own business, be it a small local shop or a large corporate firm, it is a stressful & time-consuming process. You need to have a lot of patience as well as perseverance. You take small baby steps one by one to fulfill your dream of becoming an entrepreneur. And the key to successfully running your own business without any hassles is managing your inventory well. Therefore, you should have a good Inventory Management System in place.
What is Inventory Management?
Inventory is any company’s most valuable asset. Managing Inventory includes the entire process of ordering, storing, keeping, using and selling a company’s inventory. These include:
- Procuring the raw materials
- Storing them properly
- Processing them in the warehouse
- Selling them
A shortage of inventory can prove detrimental to a business, especially the ones in the inventory-intensive sectors such as retail, manufacturing and food servicing, etc.
Risks Involved With Stocking Inventory
Inventory is also a sort of liability for your business. There is always a risk of theft, damage or spoilage of the items in your inventory. Therefore, it is imperative for you to get your inventory insured by a well-reputed company and then selling it. All of this process comes under Inventory Management and it is one of the key aspects of running a successful business of any size.
To avoid major losses from your end, you should know when to restock the items, what amounts should you purchase, what amounts should you produce, how much storage capacity you have, etc. While small businesses keep track of all their stock manually, large businesses often opt for good Inventory Management Software.
How Does A Good Inventory Management Software System Help?
A good Inventory Management Software System helps in the accurate handling of inventory, storing it well, eliminating overproduction, ordering the right amount of raw materials, reducing the wastage and costs involved. It allows businesses to manage their inventory from virtually anywhere with ease.
Inventory Management System is the basis of a well functioning business in the 21st century. It tracks the entire lifecycle of the inventory – when the stock comes in when it is stored and when it goes out of your business. It is obvious that you will make smart reorder decisions when you know how much inventory you have in hand in your stock. If you are a retailer of any kind – e-commerce, multi-channel, or brick and mortar – a good Inventory Management Software System is imperative if you seriously want to compete in today’s digital era.
Inventory management is of utmost importance in the entire process of Supply chain management. If your inventory is well managed, the rest of your supply chain will fall into place. Without a decent Inventory Management System, one can make mistakes such as missing-shipments, overproduction, out of stocks, delay in the pickup, etc.
Out of stocks and overstocks are bound to happen if you are using manual methods to place orders without taking into account the inventory in stock. These will not only lead to losses on account of the loss of money but also on account of the labor wasted. In the absence of a good Inventory Management Software System, the risk of human error goes up every minute and takes a toll on your customer reviews as well as their loyalty to your products.
A sophisticated Inventory Management System ensures smooth facilitation of logistical management of products. It automates the entire process of trading, ordering, stocking, costing, transportation, assembling, storing, producing, delivering, and shipping. Taking into account all the important processes from end to end, it streamlines the entire range of business operations. In this manner, a smart system enhances the efficiency and efficacy of business; be it small or big.
Types of Inventory Management Systems
There are a lot of Inventory Management Software Systems in the market to choose from. Make a wise choice based on your business requirements. For instance, consider your budget, your business type, your needs, what features you are looking for, etc. Don’t get intimidated by the flood of options you have! Be wise and smart enough to choose the best fit for your business.
You can pick from a variety of such systems. Some are cloud-based and have a very simple user interface. They give you a better picture of your inventory and accurate data to perform better forecasting, thus, enabling you to
make smart business decisions. They provide you access to various Inventory Management tools that streamline the workflow and help in growing your business to the next level.
A smart Inventory Management System helps you to expand your business over multiple channels. There are some that are GST-ready and this special feature will help you in saving business GSTIN. Some of these are AI-based which facilitates the management of sales over digital marketing platforms such as eBay, Amazon, Flipkart, Shopify, etc. They also have an in-built end to end tracking systems that help in tracking the movement of each item from the warehouse to the point of sale.
Ease of Invoicing:
Some Inventory Management Systems have an inbuilt feature of creating the invoices, thus, relieving the sales team from this very important task which should be error-free. Such systems help the sales team and hence, motivate them to work smarter, faster, and increase sales. These systems optimize inventory. Such systems even let you transfer stock between the warehouses, update inventory automatically, and help you manage multiple currencies.
Inventory Management Systems Benefiting Businesses
As these Inventory Management Systems act as a central hub to manage inventory, they help you in maintaining a balance between B2B, B2C, and the marketplace. An efficient inventory software:
- generates smart sales orders,
- synchronize orders with inventory,
- sets shipping rates and;
- performs various other functions to make your business run efficiently.
They ultimately help in increasing operational efficiency and; thus save money and time. If your company is having issues with selling its finished goods, it is a clear sign of inventory obsolescence. This not only raises a red flag internally within your company but also decreases the company’s ability to stay competitive and manufacture the products that are customer-appealing. Therefore, at the start of your business itself, prioritize the management of your inventory.
With a good Inventory Management System, you will reap many benefits by managing your inventory in an efficient manner. You will also experience better customer service, and good financial management, better sales, good ROI, better profitability, better product tracking, control over theft, increased efficiency of your team, etc. It will help you optimize every stage of production and supply to help your company grow.
So, what are you waiting for? Buy a good Inventory Management System soon and stop losing money in your business.