Inventory management simplifies
the way in which the inventory i.e. the various items that are stored &
transported to be sold in the outlets are managed and kept track of. It helps
keep track of goods throughout the supply chain until it is sold remove headache
and manual labor substantially in its path. The various means through which a
good inventory management system will enhance your business value and your ROI
are
1. Supply Chain Visibility:
Inventory management software
has the ability to store information on every item and for every point of their
journey. Therefore it provides complete visibility over the complete inbound
and outbound flow of products with the ability to provide further information
regarding its status and location if needed.
2. Quality Management:
In the case of perishable items,
extra care needs to be taken as they have a quick expiry period. But unforeseen
events such as delayed shipping, broken packages and fill lags can occur which
may throw schedules out of sync. Inventory management system help you identify
these undesirable results and provide an effective workaround, and also help
you understand and reduce the probability of such instances happening in the
future.
3. Functional Decisions:
Inventory management billing software
help you make key functional decisions based on analytics and data insights. It
helps you keep your warehouses at optimal storage efficiency and also acquire
more warehouses if need be, near key customers and successful retail outlets
that may further expand performance as well.
4. Cost Management:
They can also help you increase
your margin by identifying the most moving products and the least moving ones.
This helps you get rid of or minimize the stock of non-moving items in your
next shipment and thus enhance the efficiency by improving the usage of your
shelf space.
5. Enhanced Customer Service:
Inventory management systems help
you enhance your customer service by improving the overall performance of the
business through processes such as reduced time for inventory replenishment,
shipment processing and dedicated CRM modules. All of these without reducing
quality and quantity.
6. Scale:
Current inventory management systems
are designed to expand and keep pace right with your business, but the
expansion is only in terms of software and not hardware. No matter how many
retail outlets or new warehouses are added to the business, present day
inventory management systems are designed to gather the relevant data, work in
sync with other in-built modules and provide you with an easy management
experience as if it was just one outlet or warehouse.
Businesses used to shy away from
using inventory management software as they were cumbersome and didn’t provide
as many features as they do now. They were generally not worth the effort. But
now, technology has advanced and the systems are much more powerful than
before, being able to handle all aspects of the business chain even with legacy
systems. They simplify your complicated processes and also help you gain long
term benefits and better ROI on your business.