What is Inventory Management Software?

Introduction

Inventory management software helps you track, organize, and manage material purchases, product sales, and other processes. The days of using pencil and paper to track inventory are long gone. Today, you can utilize platforms based on radio-frequency identification (RFID) or barcodes to view where raw materials are placed, when shipments arrive, and when products are shipped.  

Inventory management solutions track goods all through the supply chain or the part of it relevant to a company’s operations. This covers all phases from warehousing to shipping, production to retail, and the movements of parts and stock in between.

Small companies are typically more involved in the ordering and sales portion of the supply chain. With inventory management software, you can minimize the effort and time spent on basic tracking, and focus on finding, analyzing, and eliminating the inefficiencies in your business model.

Features of Inventory Management Software

Basic Inventory Control

This is a key requested feature in the platform. It means getting a systematic method to control and manage your inventory in all your sales channels. Many new companies start with spreadsheets which involves plenty of manual effort to track inventory. These companies are first-time automators and they need to graduate to a capable inventory solution to manage their business and prepare for future expansion.

Scanning and Barcoding

It is great if there is a boost in your amount of daily orders. But this also throws up the challenge of processing and fulfilling the orders efficiently. You can process a high volume of orders by streamlining your processes and implementing scanning and barcoding during the pick/pack/ship phases.

Demand Forecasting

Demand forecasting helps you plan smartly and spend your resources capably. With a quality inventory management software, you can learn more than which are your top-performing products and channels. You can drill down into the details of your sales, like material, scent, color, or size to get vital info that will enable you to maintain accurate inventory levels. Plus, you can make informed decisions on the type and quantity of materials and goods to buy.

Accounting Integration

An accounting solution is essential for any successful business but it can’t perform the functions of an inventory and order system. You can integrate your inventory platform with you accounting tool which will assist you to post details to your General Ledger account. In addition, you can monitor all your other operational costs besides inventory.

Lot Tracking

Retailers who market products marketed by the FDA know how important it is to identify specific lots or stock items. If you need to recall a product for any reason, lot tracking enables you to know which of the items have been stocked and need to be removed from the inventory. In addition, you can track which customers have received or are likely to receive an item from the lot and alert them to ensure their safety. You can track by finished good level, or raw material, or both as per your business needs.

Benefits of Inventory Management Software

Streamline Inventory Management

The tool makes it much easier to manage your inventory and saves you a lot of money and time. Inventory management is a challenge as your stock levels will keep fluctuating because of the continuously changing supply and demand. Inventory software simplifies and automates key processes, and enables you to make educated decisions, which boosts efficiency and revenue.

Enhance Profitability

By automating your important business operations, you can more accurately and efficiently process orders, manage your stock levels, and update your listings on all your sales channels. This improved workflow lowers costs and maximizes profitability.

Increase Efficiency and Productivity

You can automate and streamline your daily manual business tasks with an inventory solution. Thus, you can save a lot of time, increase efficiency and productivity, and maximize business growth. Besides, you can use a single dashboard to process and send orders, manage your stock, print shipping labels, and generate and update listings.

Minimize Overselling

With inventory software, you can synchronize all your webstores and online marketplaces to ensure your stock levels get automatically adjusted after each sale. This significantly reduces the chances of overselling.

Avoid Excess Stock and Stock-Outs

Efficient inventory management involves striking the right balance. Too little stock can result in a stock-out, loss of sales, and unhappy customers. At the same time, maintaining excess stock takes up more warehouse space which increases your charges. The solution therefore is to invest in a quality software platform that helps you strike the right inventory balance for your business needs.