ebrsoftware

Logo - Details

Benefits Of Inventory Management Software

Restaurant management system in Dubai

A recent report indicates that more than three-quarters of shoppers worldwide suffered financially due to low-level stocks over the last year. The loss is estimated to be around $1.75 trillion. Why did it happen? Poor management of inventories.

Poor inventory management and underlying supply chain issues affect all types of businesses, of all sizes. It happens everywhere in the world from time to time. And there is one fix to that. Establish a proper inventory management system. If it were in the early decades of this century, it would have required quite complex processes and procedures. Excel sheets were the only escape for even the most advanced companies until recently. But today there are advanced inventory management software solutions for businesses. Incorporating it into your business and getting your employees familiar with it would help you solve most problems arising from supply chain and inventory mismanagement. 

This article discusses the major advantages of using inventory management software for businesses. But before we go into discussing the benefits, let’s take a brief look at what inventory management software is.

What is Inventory Management Software?

Inventory management software is a modern innovative solution which has been designed to help businesses to manage their inventories and warehouses effectively and efficiently. This software has features meant to analyse the stock and maintain a real-time track of it and notify about it the users.

What Are its Major Advantages?

The key advantages of inventory management software are: 

It maintains a real-time record of the inventories

Businesses can run inventory management software in integration with their existing ERP. This will enable them to maintain a live track of the inventory. Consequently, they can avoid chaotic situations due to stock running out. Another great benefit is that it will completely do away with all sorts of errors as they mostly happen as a result of human intervention. It is practically impossible to generate a real-time report of inventories when you use conventional solutions like Excel sheets.

It helps you sync data from multiple warehouses

For a business that has warehouses at multiple locations, sometimes it may be necessary to have data from all of them on a single dashboard. This way, they can balance the stock across these warehouses or arrange transferring of inventories from one place to another to avoid any inconveniences at one place. A good inventory management system would help you sync inventory details from all your warehouses.

It boosts productivity

Since you will not face any inconvenience due to mismanagement of inventories while using inventory management software, you will be able to ensure maximum productivity throughout the year without variations. Often, productivity variations happen in businesses due to a lack of stock. If a particular inventory is out of stock, a number of employees will have to wait until the stock comes. This will affect the company in the form of losing several employee hours.

It minimizes operational costs

When you have an inventory management system working in the background, you will have real-time updates on your stocks. For instance, you have a report from the inventory management system that your stock will be over by the end of the month. Now you have two weeks before that happens. If the price of the particular inventory is low at this point, you can order it now so that you will get it for a cheaper rate. Moreover, it will save you from purchasing inventories at a higher cost due to emergency requirements.

It helps you place orders with precision

The inventory management software would give show you the accurate quantity of goods you need to purchase and store. You can’t store certain goods for a longer period. So, by purchasing only what is needed and storing them, you can avoid unnecessary wastage and storage expenditure. 

It forecasts requirements

Modern inventory management software works in integration with other services and is automated. Over a period of time, it will learn your business’s pattern and then provide you with helpful forecasting about requirements. Let’s assume that your business will remain closed on certain holidays and thus will not need an ‘x’ amount of production for a particular month. Or you need to buy and store stock of inventories due to upcoming public holidays. You don’t have to spend hours calculating the requirements. Your inventory management software would generate forecast requirements to help you make the right decision for these scenarios.

It helps you integrate multiple supply chains

You can’t always rely on a single logistics and supply chain service provider. And because a particular supply chain provider doesn’t operate on a week, you can’t keep your business shut either. Instead, you must associate with multiple providers. You can add all your supply chain providers to the inventory management system and thus maintain a proper diversification of it. 

The use of the right inventory management software would take your business to enhanced productivity and reliability. Find out which of the advantages discussed here does your business need the most?