Summary: Avoiding the incidences of stockouts and overstocks can help businesses reduce their inventory management costs. Let’s find out the role of software in optimizing stock situations and ensuring better inventory control.
Businesses having multiple warehouses and sales channels may find it difficult to manage their inventory. Without proper inventory management, they face challenges like inaccurate inventory tracking, stock-out situation, improper order management, and so on.
Moreover, many businesses still rely on manual processes to manage their inventory levels leading to inaccurate data entry, poor management of orders, or late deliveries. However, by implementing an inventory management solution, businesses can automate and optimize their inventory operations.
The solution could help them in preventing dead stock, optimizing stock costs, managing their cash flow, and improving data visibility. You can get more insights on the usage of inventory management software in the article below.
Inventory management is the procedure of procuring and maintaining the inventory quality and levels of an organization. The proper management of inventory helps to keep the entire supply chain running smoothly. Most businesses dealing with raw materials and final products incorporate inventory management software to streamline the overall process.
From optimizing stock levels and making demand forecasting to managing items across multiple warehouses, inventory management software can help businesses in several ways. In this article, you will learn more about the benefits of inventory optimization software for your business.
The incorporation of the right inventory management solution can help with maintaining optimal stock levels and saving money with stock maintain software and optimization. In addition to that, it helps get better visibility into inventory data and prevent overstock and understock situations.
Here are some other advantages of using inventory optimization software for inventory control.
Appropriate stock demand forecasting is essential to meet the customer’s demand and prevent understock situations. By studying the historical stock and sales data, organizations can easily find out which products are most profitable and in demand. This would ensure that you have the right products to fulfill customers’ orders quickly and efficiently.
Moreover, with the right product demand forecasting, users can learn about the exact number of stocks they need to store to meet the current sales. Therefore, eliminating any need to store excess inventory reduces stock upkeeping costs. Also, the organization will know which products they need to target in their marketing campaigns.
| Case Study Company: Niglon is a family run business that supply electrical products in the UK Challenge: Their inventory management process was handled manually that sometimes led to inaccurate inventory calculation, delay in inventory fulfilment, and so on. Solution: With EazyStock, their manager was able to keep a record of all inventory items in real-time and set the reorder inventory point to learn about the right time to order stock. Impact: Using EazyStock, Niglon was able to do demand forecast and meet with the product’s increasing demand hassle-free. |
Features like barcode labelling have made inventory data much more accessible for organizations. Through the information gathered from these barcodes, organizations can quickly learn about the number of defective items, expired products, highest selling inventory items, etc. Hence, providing complete visibility into the inventory data.
Further, this data can be studied and used for inventory planning to learn about fast-selling products and successfully complete the customer’s orders. This will help the company to maintain optimal stock levels and learn about how often it needs to reorder the stock.
Not keeping a regular check on your inventory levels may lead to understock or overstock situations. One of the major advantages of inventory optimization software is that it sends alerts in real time whenever the quantity reaches a predetermined stock level. The same goes for overstock situations.
Inventory software will auto-update the available stock across multiple sales channels in real-time and send alerts for depleting levels. The alerts can help in preventing situations of business loss.
Suggested Read: Best eCommerce Inventory Management Software
Keeping your inventory organized could help significantly in reducing costs related to stock outs or holding unnecessary inventory items. The software, after analyzing the inventory data, will auto-update the stock number needed to be ordered. This will eliminate any need to bear the stock upkeeping cost.
Further, by implementing FIFO (First-Out) inventory valuation method through inventory management software, business can easily identify and sell the oldest inventory items. It would ensure that the oldest inventory items are sold first and there is less product spoilage.
| Case Study Company: L. ten Cate is an underwear and swimwear products reseller for all age groups. The challenge: The company faced issues like higher inventory costs, inaccurate product demand forecasting, etc. The Solution: With EazyStock, L. ten Cate has been able to reduce their inventory costs almost by 20% while providing highest level of service to customers. |
If you have multiple warehouses, it becomes to keep track of inventory levels and the entire workforce employed in these warehouses. With the inventory software, businesses can get complete visibility into stock levels of every warehouse. This helps you to manage multiple warehouses from a single solution and enables you to transfer stocks within different warehouses.
Suggested Read: How Inventory Software Can Help in Real-Time Stock Management for eCommerce
Adding all the inventory related data like number of incoming goods, expired goods, or highest revenue generating products manually might lead to discrepancies. However, with inventory optimization software, you can track the inventories position at every stage of the supply chain and automate data recording. Therefore, leaving less space for data inaccuracies.
Most inventory optimization software comes with multiple security features to restrict the user’s access to the company’s inventory data.
For example, a supplier may have access to only the products available in the warehouse, whereas the manager may have access to the complete inventory data of multiple warehouses for studying stock demand and forecasting.
The solution would also ensure that all the operations related to inventory remain confidential from the suppliers and merchants to avoid any data breaches.
Maintaining the right inventory levels will ensure that the right products are delivered to customers hassle-free. With inventory management solutions, organizations can maintain optimal inventory levels to meet customers’ needs.
Further, users can also provide real-time information regarding their order from the time it leaves the warehouse, till it is delivered to them.
Hence, through real-time order updates and timely delivery of orders, businesses can meet the customers’ demand and improve their shopping experience.
Conclusion
It goes without saying, the role of software inventory management plays an important role in improving product forecasting, reducing inventory costs, or eliminating stock out situation.
Related Categories: Logistics Management Software | Courier Management Software | Warehouse Management Software
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