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
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