Does your inventory management system eliminate manual hassles and put the right product in the right place at the right time? If you still need to, you must read this blog. We give you a 360-degree insight into inventory management system software. With this fantastic software system, you no longer need to perform manual counting. So, let us explore how it phenomenally contributes to the supply chain management system.
Being the most crucial element of the supply chain, inventory management involves auditing, merchandise management, and tracking. The chain begins with purchasing inventory, using it for production, and then last is sales. Partnering with a custom software development company, you can create this robust tool to make your life easy by fine-tuning all the supply chain workflows, optimizing inventory operations, and eliminating delivery delays.
The rising popularity of inventory management software in the supply chain has untapped many opportunities for several businesses to provide flawless supply chain management services. Many warehouses, manufacturing zones, retail stores, and other businesses are using it to manage their digital stores, consignment stores, and retail shops as well.
What is an Inventory Management System?
The inventory management system is software that helps businesses keep a check on the daily activity of inventory in the warehouse. As an entrepreneur, you get complete information of the inventory orders, deliveries, and sales to numerous vendors. You can check the commodity units and provide various details to the system. One of the best ways it helps store owners is it keeps them well-informed about the present stock of a particular product or merchandise. Inventory management software development is the solution for all times if you want to automate an inventory tracking system and find out the product expiration dates immediately. To keep your business going, the software can help you make intelligent decisions based on the available data.
Another critical thing to consider is the need for robust logistics to meet client’s urgencies and critical demands. To do this, you can develop a logistics app from a reputed mobile app development company. Partnering with an ideal fleet management software development company will address your logistics and supply chain challenges.
Top Features of Inventory Management System
Inventory Control
It enhances the storage space and allocates various financial resources effectively to your stock.
Order Management
With inventory management system, you can ensure your clients get adequate stock on time and in ordered quantity. With this feature, managers get the alert on the stock levels that go low. In addition, it automates purchase order received from wholesalers before the stock runs out.
Reporting and Analytics
It uses latest tools and techniques that focuses on those goods and products that have the highest turnover and those which have the lowest turnover. Through data-based insights, stock owners can reorder products that are going out of stock.
Generation of Purchase Order
With a robust inventory management system, you can auto build and transmit purchase order to vendors by showcasing all the items that are required.
Reorder Point Purchasing
This is a dynamic feature that keeps the business owners well informed to reorder inventory, so as to avoid running out of stock or overstocking. Most importantly, it picks the predetermined quantity for acquisition for inventory refilling.
Multi-Warehouse Syncing
Through this feature, managers can easily sync inventory data available across various retailer warehouses, ensuring the stock levels are in appropriate quantity.
Multichannel Sales Management
The feature helps managers coordinate inventory data entries available across different sales channels. This ensures there is no further overlapping of finding the estimated requirement across different stock locations.
Volume Forecasting
This is another unique feature that provides inventory management projections and forecasts based on historical data. Stock owners can know the future sales probabilities in the given timeframe.
Types of Inventory Management System
Following are different types of inventory management systems based on the kind of business you are dealing with:
Perpetual Inventory System
It is a method of tracking inventory that updates stock levels during each purchase or sale. Business owners can maintain accurate records about their present inventory levels. This software also gives insights about the stock status, need for replenishment, and sales turnover of various products, allowing managers to make intelligent decisions on purchases and production.
Batch Tracking System
The batch tracking system is an inventory management software that can track items in groups. Stock managers can keep track of groups of products having similar characteristics or features. Users can trace the sources and can move the individual items in various supply chain systems after finding any issues if they exist.
MRP System
Material Requirement Planning, or MRP, is an inventory management system used to forecast the future requirements of inventory. The system uses historical sales data and matches it with current stock levels. It generates reports that help businesses plan orders and production schedules. It also identifies bottlenecks or any future problems that may hamper the supply chain.
Just-in-time Inventory System
With this type of inventory management system, business owners can focus on ordering and delivering items as and when needed. For a smooth supply chain, you can develop a logistics app. With inventory management software, businesses can reduce the blockage of the amount on the overstocked inventory. Hence, it will put the inventory in balance minimize wastage, and increase the business efficiency.
Periodic Inventory System
This inventory system can track stock levels even if there is no update of records on the sale or purchase. With this system, stock owners track the inventory status periodically or on specific intervals. It can be either the month’s end or the quarter’s end. The benefit of this system is that stock owners need not keep track of inventory stock at all times.
Barcode System
Barcode systems are a very common type of inventory management system. They use barcodes to track stock levels and are most often used in retail settings for quick counting and record keeping. Barcode systems can be seamlessly integrated with various software applications, such as customer relationship management (CRM) or enterprise resource planning (ERP).
Pros of Inventory Management System
A robust inventory management system can help phenomenally and can solve various inventory management challenges. Some of the top benefits are:
Increased Sales Efficiency
- Inventory management software can use different types of technologies to track the availability of goods.
- It notifies when items go out of stock.
- Retailers remain stress free from the hassles of facing inventory stock runout and can always meet the customer's demands.
Centralized Storage
- For all the warehouses, inventory management is done from one location, removing the complexities of handling multiple locations.
- Cloud integrations help businesses by acknowledging the quantity of goods on that location via inventory management software
- Clients get accurate data of the items delivered and pending status.
Proper Planning and Forecasting
- Through an inventory management system, you can predict the future demands of products, helping you take intelligent decisions.
- To meet the possible rise in demand for any particular product, you can keep the stock up to date and avoid any last-minute hassles.
- On the other hand, you can also integrate an analytical tool with the system to understand the market trends and demands to help fine-tune your stock management strategies.
Utmost Client Satisfaction
- A robust inventory management system can improve client satisfaction and can win their trust in several ways.
- As a stock owner, you will always be aware of the available stock
- Accordingly, you can easily communicate with the vendors about the right delivery date
- Clients will have complete details of the purchase order, which will further enhance loyalty and reliability of your business
- You can hire dedicated developersto create smart inventory management software to handle your client's routine stock requirements.
Cons of Inventory Management System
System Crash
- This can be a challenge for places that have computerized and automated inventory tracking system
- It can be a technical issue, a power outage, or a bad hard drive that either hampers the process or results in data loss.
- However, all these issues can be resolved with a robust IT support system.
Less Physical Audit
- Since the entire process is automated and computerized, there is no manual audit.
- It will reduce the overall human interaction with your inventory, which may sometimes lead to discrepancies.
- So physical audits are sometimes necessary to examine spillage, breakage, or any other damages.
- Physical audits can also track data manipulation in inventory control systems.
Conclusion
We hope you now understand the impact of having an inventory management system for your growing business. Partnering with a well-established fleet management software development company can also help you build a custom inventory management system. At Whitelotus Corporation, we consider your business requirements and compare them with our unique research. We also analyze the reviews of your clients and vendors to help you get the best inventory management software for your business. Get in touch with Whitelotus Corporation today to build a completely automated inventory management system to take care of your inventory, sales channels, and metrics.
