What is Inventory Management Software?
Inventory management is inarguably one of the most important aspects of any business. Efficient inventory management is crucial to ensure that optimal stock is available in the warehouse and doesn’t get stocked out or have excess.
Approximately 72% of all retailers plan to leverage real-time inventory visibility, enabled by automation to increase business efficiency.
Have you planned to automate your business?
What is inventory management software?
It is an automated platform that is in sync with delivery management software and tracks, manages, and organises the product ordered by the customer, available in stock, and delivered to the customer.
Stages in inventory management:
Inventory management involves the management of the inventory from being procured till it is delivered.
The Five steps involved in inventory management are
- Purchasing- The amount of inventory required is procured and checked. It is vital to check the quality and quantity of the product received to ensure proper handling of the product in the right environment (in the case of perishable items).
- Production- The inventory obtained is used for producing the final product or is simply processed and packed.
- Stock holding- The total available stock is checked and matched with the future stock requirement to fulfil the demand.
- Sales- The next step involves accepting the customer’s order, processing it, and accepting payments. Once the customer places the order, it is picked, packed, and dispatched.
- Reporting- All the sold products left products and the future product quantity for reorder are defined. While reordering the inventory, consider that you order the right product and quantity.
Benefits of inventory management software- The software is an automated platform that allows businesses to define the precise amount of inventory available, sold, and required to fulfil the demands.
- Cost-efficient- With the help of a delivery management system integrated with inventory management software, businesses know the amount of inventory required to fulfil customer demand. Having an accurate report avoids buying excess or insufficient stock and prevents unnecessary losses. It can give better insights into available inventory and customer demand leading to higher inventory turnover and increasing profits.
- Improve Customer satisfaction- Efficient inventory management helps timely order fulfilment as businesses have accurate insight into future stock requirements. Timely deliveries increase the customer satisfaction score and help in building brand loyalty. It also helps in improving positive business-customer relationships.
Challenges in inventory management
Manual inventory management can be daunting and overwhelming as the business grows and the number of customers and orders increases. An inefficient approach to inventory management can lead to either insufficient or excess stock that can incur losses.
- Getting accurate stock details- Human errors are common when it comes to manual calculations. And calculating and managing the stock is no different. Manual calculations can lead to either stockout or overstocking.
- Inefficiency in using warehouse space- Inaccurate stock details can lead to overstocking in the warehouse, making it hard to handle excess stock and increasing the stock handling cost.
- Lack of digitisation- With digitally facing customers, manual inventory management can lead to delayed order deliveries decreasing customer satisfaction. It can also lead to an increasing churn rate. “34% of businesses have faced delays in making deliveries because they accidentally sold the products that were not in stock (overselling).”
Inventory management gives a precise insight into the stocks that is critical for the efficient working of a business. Right software business increases the efficiency of the order fulfilment process and reduces expense. Learn more about inventory management software from our experts and see how we can help: Book a Meeting
Hope You Enjoyed the Read!
He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.
Related Blogs
What is the Best Reverse Logistics Software to Track Empty Bottles?
What is the Best Reverse Logistics Software to Track Empty Bottles? Reverse logistics in businesses like water delivery or milk delivery business is a crucial process to maintain sustainability in the business. Reverse logistics can be featured as the area of logistics where all the reverse process of distribution is performed. Due to the economic… Continue reading What is the Best Reverse Logistics Software to Track Empty Bottles?
Scheduled delivery – Trends in 2023
Scheduled delivery – Trends in 2023 COVID-19 has brought a significant shift in delivery times as customers remain locked behind the doors. The “quick commerce” grocery business promised delivery in 15 minutes. Although the idea was a boom in the first two years, a sharp decline with some of the businesses, like Friddle no longer,… Continue reading Scheduled delivery – Trends in 2023
Achieve Green Deliveries with Delivery Management Software
Achieve Green Deliveries with Delivery Management Software As the world pays more attention to sustainability, companies from all fields are taking steps to diminish their carbon footprint. Delivery and logistics firms have recently gotten a lot of recognition for their efforts in this area. The need for effective and environmentally friendly shipping solutions is more… Continue reading Achieve Green Deliveries with Delivery Management Software
Delivery Management Software – Features, Benefits and Mechanism
Delivery Management Software – Features, Benefits and Mechanism The emergence of technology has revolutionized the way businesses operate, with seamless and efficient delivery being paramount. Delivery management software is a cloud-based platform that allows businesses to track and manage their entire business from a single pane of glass. This technology streamlines the entire delivery process,… Continue reading Delivery Management Software – Features, Benefits and Mechanism
First in First Out – Ways to Manage Inventory With Milk Management Software
First in First Out – Ways to Manage Inventory With Milk Management Software Milk, being a quickly-spoiling item, needs to be handled with great care in order to guarantee its freshness and quality. One of the best ways to manage milk inventory is to use the first-in, first-out (FIFO) method. The FIFO method is an… Continue reading First in First Out – Ways to Manage Inventory With Milk Management Software
Enhance Your Customer’s Interaction with Water Delivery Software
Enhance Your Customer’s Interaction with Water Delivery Software In a world where convenience is foremost, businesses are consistently pushing the boundaries to create more impressive customer experiences. Water delivery software has seen a sharp rise in popularity as it streamlines the connection between companies and their clients, providing a seamless and tailored experience like never… Continue reading Enhance Your Customer’s Interaction with Water Delivery Software
Routing Capacitive Vehicles with Delivery Management Software
Routing Capacitive Vehicles with Delivery Management Software Organising the paths of vehicles that boast the capability to store and transport items, taking into consideration their capacity, is made easier by utilising delivery management software. These vehicles can accommodate varying amounts of load, including when it comes to volume, weight, and other aspects. Software, powered by… Continue reading Routing Capacitive Vehicles with Delivery Management Software
Milk Delivery App Development – Key Features and Benefits
Technology has been integral to the transition from going to stores to purchasing groceries to getting them delivered to one’s home. Using milk delivery app development services have become easier for those with hectic routines to get their essential items such as milk, yogurt.
The Last Mile Delivery Management Software You Need in 2023
Changing customer behaviour and delivery expectations has made “fast deliveries a new normal” According to a report by the World Economic Forum, to grow and retain customers. Meeting customer demands and giving them a good customer experience requires businesses
Rapid Delivery vs Scheduled Delivery – What’s the difference?
Rapid Delivery vs Scheduled Delivery – What’s the difference? Last-mile delivery is the last step in the order fulfilment process, and with changing consumer behavior, last-mile delivery as well has undergone drastic changes. Delivery trends are changing mainly in the grocery delivery business with delivery scheduling software. In this blog, we’ll discuss two common trending… Continue reading Rapid Delivery vs Scheduled Delivery – What’s the difference?