When it comes to growing your business, one of the major challenges you’ll face is effectively managing your inventory. As your order volume increases and you start to explore untapped markets, it may become nearly impossible to manage your operations and inventory manually.
This is where robust inventory management software can help your business power through high demand and achieve operational efficiencies. An inventory control system is a one-stop solution to your inventory needs. It includes features for buying stock, storing it, using it efficiently, and replenishing supplies when stock runs low.
Depending upon the size of your business, an inventory management system can be through paper based files or some numbers on an excel sheet. For others, it can be consolidated software and inventory management applications.
Apart from reducing manual workload and achieving operational efficiencies, here are various other benefits of an inventory control system.
One of the biggest reasons companies use an inventory control system is that it makes the whole process simpler and easier, which saves a lot of hassle, time, and money. In such a difficult business climate, your inventory levels can fluctuate constantly. This increases the risk of human error if you’re manually managing your stock levels. Inventory control will minimize this risk and provide you with a much more robust inventory control system.
If you’re an online business, there’s a high chance that you might risk overselling your products. This can result in negative feedback from customers, loss of reputation, and in a worst-case scenario, a ban expulsion from online marketplaces like Amazon and eBay.
However, there is a solution to overselling—implementing cloud-based inventory management software. The software will sync your orders and inventory across marketplaces and ensure that your inventories are adjusted automatically after every sale.
The benefits of having inventory control go far beyond overselling and human error minimization. It can help you reduce costs and streamline processes. First, it will help you cultivate better relationships with your suppliers as an inventory management system will reduce your supplier lead time.
Second, it will allow you to control your inventory levels better by reducing excess and obsolete stock. Third, automation has a great impact on how well you control inventory. Poor stock management can lead to significant losses in revenue, mainly due to human errors in stock-outs and overstocks.
Minimizing Stock-Outs and Overstocks
As mentioned above, your business can experience a significant loss in revenue due to stock-outs and overstocks. Having a strong inventory control mechanism will help you create the perfect balance in your stock levels.
Insufficient stock levels can lead to a stock-out which will result in unsatisfied customers and loss of sales. On the other hand, if you have excess stock, it can take up unnecessary warehouse space, resulting in additional costs. Either way, you’re in trouble!
Don’t worry; there’s a solution to every problem, and in this case, it’s quality stock control inventory management software. With such management applications, you can instantaneously track low stock levels and re-order the products immediately. This will help you avoid any stock-outs.
Improved Supplier Negotiations
Another advantage of an inventory and order management software system is that you’ll be able to access valuable information that will help you improve your negotiations with your suppliers. Having a software with batch tracking capabilities will give you insights into product traceability, allowing you to track down suppliers who are the most beneficial for your business.
With such detailed reports on supplier reports, you’ll be able to negotiate better terms that will further benefit your business.
Better Contingency Planning
At some point in time, you may experience a product recall. The process can be highly frustrating and can cause anxiety as all your hard work in selling these products will be undone. However, the process can become even more tedious if you don’t have batch tracking functionality.
Without adequate traceability, you may have to spend countless hours recalling the products in question. Furthermore, it can be difficult to locate the affected batch with your supplier.
Not only will it affect your business operations, but it will impact your productivity as you’ll spend a lot of time locating bad products instead of focusing on how to improve your business.
Helps In Making Profitable Decisions
We live in a world where data plays an important role in our decision-making process. Having accurate sales data and forecasts will help you make business decisions that will increase your profitability and growth. You can get such information with the help of an effective inventory management system.
A better understanding of your previous supply and demand will help you forecast sales trends, giving you a competitive edge amongst your rivals. With such detailed information, you’ll also be able to work out your inventory turnover rate, which will assist you in reducing the amount of stock in your warehouse, resulting in lower inventory storage costs.
Clearly, inventory control management offers immense benefits to your business. The impact it can have in reducing costs and maximizing sales can boost your business growth and profitability. It will reduce labor costs and risks as everything will be automated. Furthermore, it will increase your productivity as you’ll spend more time making strategic decisions for your business than managing the inventory.
So, if you’re on the lookout for the best inventory management software, then check out AltheaSuite. We are the best at providing inventory system software for small businesses, furniture retailers, distribution businesses, and more.
Our batch tracking inventory management system will help you with product traceability and contingency planning. Our state-of-the-art cloud based inventory management software is accessible from anywhere you like and will help you manage your business processes through a single application.