Why You Should Adopt A Capable Inventory Management Software For Your Business

Inventory management entails striking a perfect balance between the production of products and the demand for them, and it plays an integral role in keeping your business afloat. Creating a streamlined process for taking care of your inventory means having sound systems in place for controlling, overseeing, storing and managing the timely delivery of goods to your customers.

Most businesses, especially small businesses, think their inventory stock and books are manageable with a simple pen and paper or a spreadsheet. This isn't true, however. Inventory management software is critical to both small and large businesses. The software can help in automating key processes and keeping inventory within an accessible and organized space.

What Is Inventory Management Software?

Inventory management software is a software system that allows you to track all your products across your business supply chain. It optimizes the entire array of processes which begin from order placement with your vendor. It can also be essential to the manufacturing industry particularly for creating bills of material, work orders and other production-related documents.

Most companies use inventory management software to prevent product outages and overstocking. It's a tool for organizing work data stored in hard copy form or on spreadsheets.

Using this software will have a considerable impact on the bottom line of your business. With accurate tracking of your products, your business can minimize waste, analyze new market trends and make high-value investment decisions.

Features of A Sound Inventory Management System

The software you choose to use for your inventory control needs should offer all the features that are vital for effective management operations. Here's what to look out for:

• Barcode scanning: This will identify and track all your items. The software integrates with barcode scanners to identify your products and label them.

• Stock notifications: You should be able to receive notifications and alerts when there's an understocking or overstocking of goods beyond the set threshold. This will help you know the items in stock, what's moving and what's not moving. It can also help you order what isn't available and configure promotional discounts to clear out excess inventory. 

• Inventory optimization: This is a useful feature for businesses that deals with products experiencing seasonal rise and fall in demand. Your company can maintain the right amount of stock for each product without overstocking or understocking.

• Stock returns:  Manage stock returns effectively using an automated process and reduce the time used to return goods manually.

• Multi-location management: This helps you manage multiple warehouses and points of sale (POS).

• Purchase order records:  Easily identifies which products are in demand and helps you prepare to meet customers’ orders. It creates a single view of purchase order records.

• Report generation: This enables you to view sales history in form of the most popular products.

• Warehouse management: It's a useful feature if you need to optimize your warehouse stock and have a single clear view of where all your items are located in the warehouse.

Importance Of A Good Inventory Management Software for Your Business

Inventory management software rids you of the stress of having to deal with inventory yourself. With the use of this software, companies can operate with greater ease and accuracy while competing effectively. The following provides an overview of the importance of adopting good inventory management software, which boosts inventory accuracy and customer satisfaction. 

1.     Integration of backend systems with accounting

Modern inventory management software such as Lilypad for Fishbowl go app allows for connectivity to all backend systems, including accounting software such as QuickBooks and inventory software. It provides for minimal data entry requirements, detailed financial reports and a flawless ordering process. 

The integration of backend systems through inventory management software creates a system where all processed data is found in one place. It allows for easy monitoring of the whole supply chain process with effective order processing systems.

2.      Enables cloud-based inventory tracking across all outlets

Managing all your inventory from different outlets in a centralized place is made possible by using cloud-based inventory management software. Multiple outlets, warehouses and e-commerce stores can all access the same data, uniting the business as one.

You and your employees can easily track orders and perform all business operations from a single online dashboard. It creates a degree of flexibility for businesses where they can access and track orders from anywhere.

3.     It eliminates human errors

Inventory tracking doesn’t just entail counting the items you have in your warehouse. You also need to track every product that comes in and out. This means purchase orders and sales receipts need to be processed and adjusted accordingly and accurately. You can use your staff to do this manually, but it creates room for error and even the smallest discrepancies can cause trouble in your operations. 

When you use inventory management software, it takes the guesswork out of keeping track of your stock. With the right software in place, you can keep track of all transactions and ensure your stock is updated.

4.     It saves you money

An integral part of inventory management is having enough stock at hand. If you understock, you'll run out of products to sell, and you won't be able to meet customers' demands. If you overstock, you'll waste warehouse space and end up tying up your business capital in excess stock.

The appropriate software will help you see what needs to be ordered and when, which will allow you to trim costs and offer discounts and promotions whenever necessary. When you're aware of what's available in stock, it makes a massive difference to how much you spend replenishing them. You'll avoid spoilage and overstocking or understocking, which may create losses for your business. 

Conclusion

Ensure you choose inventory management software that grows with your business. As your business expands, your business requirements and needs will expand as well. You don’t need to reinvent your day-to-day business operations. The best software is one that works efficiently at the beginning and as you grow your business.