Metrics are great for tracking your business success, but you’ll need the latest data at your fingertips. And that’s why you need an inventory management solution if you want to stay up to date on inventory movements in real time. If you’re trying to decide whether it’s time to get an inventory management solution, we’re here to help you figure it out:
In our quiz, we addressed some of the fundamental benefits of having an inventory management solution. However, you may be experiencing other circumstances that indicate it’s time to move to a scalable inventory management solution.
1. You Have a Large Inventory
If you’re using spreadsheets to manage your inventory, you’ll find yourself with a growing headache as your inventory volume increases. After all, your spreadsheet has columns covering everything from cost and retail price, to purchase and sales orders.
As you start increasing the amount of data on the spreadsheet, you’ll find the system requires longer processing time. With hundreds of columns to track and update, you’ll be faced with an increasingly complex and difficult task.
However, with a cloud-based inventory management software, you can say goodbye to long loading times. It’ll also track the inventory movement and inventory levels of all your SKUs in real time, so you’ll always have the latest inventory numbers at your fingertips.
You will also be able to set reorder point alerts for individual products to ensure you’ll always have enough stock on hand, without worrying about disappointing customers.
2. You Are Experiencing Stock Variance
Stock variance occurs when the inventory counts in your records differ from the actual amount on your shelves.
Reconciling your inventory levels is more complicated than just adjusting your records to match the physical amount you have on hand, as stock variance can be hinting at a mismanaged inventory, or worst, inventory theft.
Moreover, you’re also opening your business to an increased risk of human error by doing manual data entry. Finding errors on sheets of numbers and data can be challenging, especially when you’re managing hundreds of products on a slow spreadsheet.
To solve the problem of human error, you may want to look into automating the inventory management process with a cloud-based inventory management software. If you’re selling on multiple channels, inventory management software lets you keep an eye on all your sales channels from a single dashboard.
3. You Have Other Software for Different Aspects of Your Business
Ideally, every platform and system you choose for your business should complement each other. Every software you choose for your business should be compatible and integrate easily with the rest.
Doing this lets you ensure maximum automation across all your business processes, while minimizing the chances of human errors. You’ll be able to pull and push data seamlessly from one integration to the next, ensuring that you have accurate data and records.
Moving to a scalable inventory management solution is only the first step. As your business takes you to new places, you may feel it’s time to open up new storage facilities. So next week, we’ll be back to discuss tips on maintaining inventory control over multiple storage facilities.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.