Handling stock involves supervising and managing the constant inflow and outflow of products efficiently. A good inventory management system entails cost management along with stock levels. If the inventory levels become too high, stocks may become outdated. If the stock runs too low, there is a risk of operations delay and temporary shutdown. The costs, the accounts receivables and account payables, all need to be balanced so that there is no financial recession or heft debt amounts to be paid. The use of inventory management software becomes important due to time sensitivity and costly nature of inventory management.
Uses of Inventory Management Software
Good inventory management software is helpful to not only keeping record of the inventories, but also to keep track of manage orders, sales, deliveries and other systems.
Here are few other uses of this software:
- Inventory tracking between different locations
- Receiving and shipping products to and from warehouses.
- Keeping track of customer orders and sale levels
- Keeping a check on old products and avoid as much obsolescence as possible.
Advantages of Employing Inventory Management Software
Automated inventory management software can be of great advantage to a company. This is true especially for big companies, which are based in a number of different locations and have a huge amount if inventory flowing back and forth.
Cost cut down – inventory is one of the company’s biggest assets. Improper management can result in huge losses. Moreover, the cost involved in managing it is also high. Using inventory management software cannot only reduce the chances of incurring a loss but also cutting down on the costs needed to manage it all. These costs include workforce and warehouse (storage space) costs etc.
Efficiency – as with any other automated system, inventory management software provides great efficiency. The amount of time and effort required to count inventory, collect data, create documents, conduct calculations and generate reports can be cut down immensely by an automated system.
Minimizes error chances and keep information updated – an automated system leaves little room for errors. There are more chances of errors when large human force is involved in doing a particular task, especially, when it is of high concern.
Moreover, the time between any two-inventory updates can be costly and can misrepresent data to stakeholders.
Data security – inventory information can be sensitive, since inventory is one the company’s largest investments. Restricted user rights can be applied to the system to allow access to only those who are granted permission.
If you have a huge amount of inventory and need to conduct your business with efficiency, using inventory management software is an excellent idea. There are many off the shelf and customized softwares available for your assistance. For more information on inventory management softwares and complete packages of eCommerce solutions, visit www.appath.com/blog/.