Running a large business has its own set of challenges. Managing inventory is one of them. But, with the evolution of inventory management software, things have become much more streamlined. Companies can now view all the products in their store.
In this Guide
With an inventory management system, your firm can have clarity into its entire stock, which will help maintain optimal accounts to continue fulfilling the orders.
Besides, with the right type of software, businesses can improve the way of maintaining, ordering, and tracking new stock. Let’s understand more about inventory management software and how it helps businesses ease their processes.
What is Inventory Management Software?
Inventory management software is an application that controls the supply chain and delivery system by automating reserve and warehouse management aspects. This software streamlines tasks to reorder, track inventory and update accounting data.
An inventory management program ensures tracking inventory levels and identifies the products that are less in stock. With the right software, like FirstBit’s warehouse & inventory management software (https://firstbit.ae/products/erp-dubai/inventory-and-warehouse/) designed in Dubai, UAE, you can organize your customer and vendor information. Businesses with inventory management ERP can manage their daily operations easily.
What are the Key Features of Inventory Management Software?
Choosing the right software is crucial for your business. So, you considered the unique aspects of your company’s operations.
We’ll now look at the unique features of this software for warehouse management, retailers, and manufacturers.
Inventory Management Features for Warehouse
Fixing RFID tags to the warehouse items will help you track the movement without the scanner hardware.
If workers place the RFID tags and readers throughout the warehouse, they can track products. But, the tag needs to be near a reader. Such a system eliminates the need to scan items. Also, it smoothens the process of order management and makes it error-free.
With the barcoding feature, warehouse management systems can track the flow of products in storage facilities. Workers can scan the items when they receive them. They can scan when the items are moved to a specific bin or aisle and when they are out for shipment. The workers can follow all such movements through real-time intelligence.
Barcoding has many features like batch barcoding for high-volume, low-cost items and serial tracking for high-ticket items. Also, workers can do certain barcoding features from a simple QR reader on a smartphone.
Inventory Management Integrations
Warehouse management is a part of the inventory management process. As the two are related, both methods must be integrated. So, users must look for a warehouse inventory program that integrates with their inventory management system.
Inventory Management Features for Retailers
Retailers must catalogue inventory by distinguishing size, colour, unit type, and other features.
For example, if you sell t-shirts, you should be able to specify t-shirts down to the specific type. Your system must identify if you have a quantity of M-size t-shirts in black, L-size t-shirts in white, and so on.
Most retailers sell across every channel, like online marketplaces, physical stores, e-commerce websites, and more. So, your inventory software needs to track sales on all media channels. You cannot make the mistake of trying to fulfil more orders than you have in stock.
Point Of Sale Integration
With a point-of-sale integration, retailers can track the product’s sales, whether it is on an e-commerce platform or a physical storefront. The point-of-sale functionality updates the inventory management system when a product is checked out or scanned in an online cart. As a result, it accounts for the sale in real time.
Fused with automated reordering, the point-of-sale integration allows retailers to have a suitable amount of stock to fulfil their orders.
When your inventory level gets low, you can order more with enough lead time to ensure your best-selling stocks stay supplied. Besides, most inventory management offers automated reordering. All the retailers need to do is set the least quantities for each item. Then, when you reach that number, you can generate an order to send to your supplier and refresh the stock level.
With smart inventory management systems, you can reorder quantities of items based on historical sales data to keep your inventory level at ideal amounts.
Inventory Management Features for Manufacturers
Forecasting analyzes sales data and historical production to predict future order management needs. Also, inventory management software with forecasting features can help analyze your data to determine hiring recommendations, reorder points, and shift schedules to meet the required targets.
Product Cost Analysis
Manufacturers can track finished goods and raw materials with product cost analysis tools. You can reorder the essential components when it hits the smallest limit. The product cost analysis feature can also predict operating costs, labour costs, maintenance expenses, and machinery acquisition costs.
E-commerce is not only used for retail business but manufacturing as well. Manufacturers today sell to the end users. For example, this type of application with an e-commerce integration will sell to customers online. The manufacturers can use the software to streamline sales to their retail clients or expand to include an extra sales channel.
What are the Advantages of Inventory Management Software?
This software helps businesses streamline their workflow. Its ever-increasing growth is proof!
Let’s look at some of the crucial benefits of inventory management operating systems.
When your company sells products, the supply and demand data is continuously changing. But with the right software, you can manage your inventory. It’ll save you plenty of time and reduce the risk of human errors.
Effective inventory management gives you a clear idea of your stocks. You can place your order for renewing stocks when necessary to meet customer demand. You will have an accurate picture of what’s on backorder and what’s available. And, in this way, your company won’t have to worry about overselling products.
Better Insight into Products
You can get more insights into your products with the right operating system. Your team can also identify the sales trends and the best-selling products. Besides, you can note the inventory that needs to be moved and track the recalled products.
Inventory mismanagement can cause you to lose money due to overstocked items and errors. But your business can save money in the long run with an automated inventory management program.
Improved Customer Experience
With effective inventory management, the customer experience also improves. Your business can meet customers’ demands by having the right products in stock.
You can automate your business and increase efficiency with the right inventory management operating system, The software does everything from tracking products to replenishing stocks without errors! Ensure to look for a software solution that can grow with your business.