7 Important Reasons Why You Need An Inventory Management System
Can you imagine how companies and stores manage to do their inventory several years back? Before computers became available to facilitate the performance of some of the routine manual work, several tasks such as doing inventory, were done manually. Depending on the size of the company or store, it could take a week or two and the concerted effort of accounting, warehouse, and staff of other involved departments. Today, inventory process is faster. It is also accurate. It can manage and track receiving and shipping real time, so you have a more accurate sales forecast and avoid overstocking and under stocking situations. Still, there are many business owners, especially small ones, that are not yet sold to the idea of investing in an inventory management system. ,A small business needs to efficiently manage its business flow processes to realize profits. Having up-to-date inventory reports is one of those processes, which could lead to savings and better bottom lines.
1) Saves time
An inventory management system saves you time. If you are still doing manual inventory, this means that you have to reconcile sales receipts with your physical inventory. Depending on the size of your store and the number of products you sell, you will understand how time consuming this can be. With an integrated inventory management system that combines financial accounting, point-of-sale (POS) system and master inventory, the individual processes becomes automatic and interrelated, so all you or manager needs to do is print out the report daily, where you can see which stock need to be replenished at a glance.
2) Better control of stock levels
You’ll be able to plan accurately when you have better control of the levels of your stock. With a good inventory management software, you’ll be able to stay ahead of seasonal changes and can stock up on the proper amount of products for high demand curves.
You will always have accurate reports with a computerized inventory system. There is always that possibility that errors can occur when inventory is done by hand and it could easily be overlooked. Wrong calculation and typo errors could mean losses or additional expenses.
When you are busy attending to your business to ensure that it grows and continue to give you profit, your processes should be consistently maintained and executed. You are assured of getting your orders, inventory and other financial reports that are uniform in presentation and professional in appearance, despite being prepared by different persons.
Who wouldn’t want their warehouse to be organised? You’ll have one when you use an inventory system. You can optimise your warehouse by knowing which products enjoy the highest sales, so you can group them together for easier access. You can even categorise your stock for better identification and order processing.
6) Increase in productivity and efficiency
If you want to increase the productivity and efficiency of your business processes and your staff, a good inventory management system will provide that. An inventory management program and devices like barcode scanners will significantly improve your productivity and efficiency as you can do away with manual processes. Your staff will be able to focus on other business areas that need human supervision rather than automation.
7) Customer satisfaction
You’ll have happier customers who’ll want to come back to your store more. It is difficult to gain customer loyalty when you cannot satisfy their needs when they want it. A good computerised inventory system allows you to quickly meet customer demands by having the right products as soon as your customer comes to order them.
For small and medium-sized businesses, the best solution it to find the right inventory management software that is affordable and robust to meet your needs. It should also be easy to understand and use as well as scalable and can be expanded alongside your business growth.