An efficient inventory management system is one of the pillars of any successful business. The basic principle of an efficient inventory system lies in the balance between consumer requirements and minimum inventory expenditures. A study conducted by the Aberdeen Research Group in 2012 bought to light a couple of interesting data points – 60% supply chain professionals claimed the reduction of inventory expenses as their priority, 42% of them considered customer service in the same light.
A seamlessly-functioning inventory can sometimes be a challenge, especially when tracking your stock requirements as well as maintaining consumer satisfaction. Technology, however, has been rapidly changing the playing field with the introduction of multiple inventory optimisation and management tools/softwares for simplified business operations.
As opposed to a manual management of your warehouse stock, it is significantly much simpler to control your inventory through cloud-based technologies, there are many available in the market, who offer complete end-to-end solutions to take care of your inventory.
Are you wondering how these tools can help your business? Let us see how you can simplify your inventory management requirements using technology.
Firstly, you can have complete visibility over your inventory.
Inventory management tools will help you create a centralised inventory update system which can be accessed by your entire team. These tools come with efficient stock-updating systems so that your business can start re-selling faster, along with mobile access, which means you can now take charge of your inventory management on the go. Additionally, they come with real-time stock management features which make it easier to track your upcoming stock requirements.
Secondly, you will able to manage your sales efficiently with a constantly-updated inventory.
Promotional offers and festive seasons witness a significant rise in orders which means you need to be constantly on your toes to ensure that you have enough stock. Whether it is those unexpected sales or bulk orders from multiple clients, inventory management technologies analyse your orders to tell you the exact requirement and even automatically notify the supply system.
Thirdly, your business will experience reduced expenses with optimised inventory management.
As discussed earlier, the crux of managing your inventory lies in having the minimum quantity stocked for the maximum number of approximate sales. A dynamic inventory management model will help you cut down on inventory storage costs, which in the long run, can eat in to your profits. Instead, you can track and analyse the pace at which your inventory moves on an average and take count of your must-have pieces, cutting down on the ones that can be stocked at lower numbers.
Finally, you can improve inventory quality by tracking inventory age and expiry dates.
Nobody wants to receive a product that is of bad quality, which is why you must be extremely careful that your inventory does not exceed its shelf-life. Inventory management tools will help you track product ageing so you can prioritise selling your older stock first before they become unsellable. You will also be able to track damaged good and returns, categorising them accordingly, and working on a resale strategy. Tracking your inventory’s shelf-life will also help you cut down on unnecessary stock, reducing storage as well as sourcing expenses.
Managing your inventory in a productive manner can be a boon for your business. A balanced cash flow into and out of your business will ensure seamless operations and better revenues. This will be possible once your inventory functions smoothly with a complete measure-and-monitor system that tracks new requirements, sales statistics, returns, product ageing and expenses. If purchasing an inventory management tool throws up challenges to your business budget and logistics, you can also consider a host of free software which are available on the web.
So, are you ready to run a more efficient business?