When you want to take your business to the next level it requires planning from start to finish. Your customers are becoming more discerning, your competition is a lot more fierce, and there’s pressure on you to bring new products to market. How do businesses keep up?
6 ways inventory management software is indispensable to your business
To give you some food for thought, let’s take a look why inventory management software is vital to grow your business when things are changing fast.
It enhances your efficiency
If you tend to notice slowdowns at certain times of the year, but don’t adapt your ordering processes, then you’ll be in trouble. A well thought out inventory management system allows you to plan far in advance by analyzing historical trends. That’s ideal if you want to ensure that you never make the same mistake twice. The great thing about identifying efficiencies is that it allows you to deploy your resources more effectively. You don’t even have to invest in new hardware or staff. You just make better use of what you already have.
It improves your productivity
This point follows on naturally from the first. When your staff and other resources are all pulling together in the same direction, your productivity will skyrocket. Because you’ve identified what you actually need all year round, you can be proactive in your approach to allocation. Clearly, if you want to succeed , boosting your productivity has to be one of your main priorities. Tracking your inventory in real-time allows you to make it happen.
You’ll keep your costs down
Ordering too much stock is often more costly than not ordering enough. Stock that doesn’t get sold is just dead money. It will take up space in your warehouse or on your shelves, space that could be used for products that sell. You’ll end up cutting the price to clear your inventory, eliminating your margin. Not only that, but you’ll still be paying the cost to hold that stock as long as it sits in your inventory. Even worse, products that become obsolete may end up as a complete loss if you can’t even sell it at a discount. Something which could have been easily avoided if you had the benefit of an inventory management system that tells you what stock is aging and helps you make the right purchasing decisions.
Integration gives everyone the big picture
As your business expands, it can be hard to keep key stakeholders in the loop. Different staff members may well be investing time and money in things that others are more suited to do. Worse yet, they may be duplicating their efforts. This not only wastes time and effort, it also ties-up working capital and is a guaranteed way to eat into your profits. The secret is to ensure that everyone can see the big picture. By keeping all of your data in a central location, an inventory management system can integrate processes to allow your staff to do the jobs they are meant to do.
You’ll do away with manual tasks
Manual administration work involved in processing and dispatching orders takes on a life of its own. With so many different suppliers, customers and channels, manual work makes it difficult to keep track of where in your supply chain an order sits. Moreover, when staff manually update information in different places that don’t connect to one another, your business as a whole will be blind to what’s going on. These problems disappear when you move to an automated inventory management system. This is idea if you want to free up your staff so that they don’t have to devote anywhere near as much time to manual repetitive tasks as they currently do.
You won’t disappoint customers ever again
The most important way an automated and integrated inventory management system will help your business grow is your customers. In the age of Amazon and 24-hour fulfillment, consumers won’t wait 7 days for a product any more. If you cannot quickly fulfill their orders, then you’re surrendering ground to your competition. If you want to streamline your operations and give your customers the best possible experience you can, an integrated order and inventory management system can make it happen.
About the Author
Kristin Savage is a graduate of Columbia University and a writer at Pick Writers.
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