Benefits of an Inventory Management Software

If you’re an ecommerce seller at the moment, you’re well aware of the fact that being in the world of ecommerce is currently more lucrative than ever. Be it clothes, jewelry, makeup, skincare, books, or whatever it is you decide to sell, making use of ecommerce is an extremely wise thing to do in the market right now. The best part is that you can use multichannel listing tools and multichannel selling software to display your products across various platforms, so that they’re viewed by more people, not just locally, but also globally.

Being the owner of an ecommerce business also means having to take care of several elements, and it’s best to employ the numerous tools at your disposal to take care of things such as shipping fulfillment, order management, dropshipping, and so on. Of the various software that you should be using for your ecommerce business, one of the main ones to make use of is an inventory management software.

Why an inventory management software, you ask? Well, let’s put our imagination into action for a while, shall we?

Picture this: You walk into a retail operation or a warehouse. However, something doesn’t seem right. Once your first order is in, the problems begin to show up one after the other. There isn’t enough stock to complete all your orders, your products don’t seem to be organized well, your deliveries are not happening on time, and some of them are even ending up at the wrong destination; basically, everything is in chaos.

This is enough to get anyone into panic mode. However, all of this can be avoided with an inventory management software. Managing your inventory is by no means an easy task, which is why employing an inventory management software and real-time inventory sync tools is of utmost importance. Not only does an inventory management software help bigger organizations in managing their complex orders and operations, they also aid the smaller business in staying one step ahead in the competition. Let us now take a look at what inventory management is all about, and the benefits it offers to your ecommerce business.

What is Inventory Management?

Inventory management can be defined as the practice of managing your inventory so that your supply chains keep functioning smoothly. It’s by relying and depending on the effective inventory management tools used by you that your customers keep up the faith of receiving their orders on time.

Having your inventory in place reduces the amount of resources you need to get your products delivered to your clients on time. This is why so many storage and distribution warehouses make use of inventory management tools and software to streamline the process and make it more organized.

Although many warehouses believe in making use of a warehouse management system (WMS) that come with all the features and services you might need, many companies go for specific inventory management systems. This is mainly so that you can get access to extra benefits such as inventory tracking and so on.

What are the Advantages of an Inventory Management Software?

The last few years have seen a 25% increase in the number of organizations adopting better strategies and tools to improve their inventory management system. If you feel that managing your inventory manually is becoming a difficult task, then resorting to an inventory management software is the best thing to go for. Here are some of the many benefits offered by an inventory management software:

Improves Accuracy and Efficiency of Inventory

Did you know that the accuracy level with regards to inventory for most retail businesses is just 63%? Yes, that’s extremely low and pretty disconcerting, since inaccuracy in orders can severely damage your business and its reputation. This is where the very first benefit of an inventory management software comes in, which is reducing the amount of inventory needed to be kept on hand by organizations to improve the accuracy of their orders.

Once your held inventory decreases, you will end up saving a lot more both on time and effort. If you make use of an inventory management solution that’s modern, you can also do away with a couple of warehouse locations, thereby saving the expenditure related to those centers. The advantages offered by inventory tracking allow you to stay agile and dwindle your inventory. These new methods and strategies can also aid in boosting your ROI.

In addition to the various inventory management tools and software available, you can also look into the concept of just-in-time inventory. A just-in-time or lean inventory strategy refers to the process when a company closely tracks the levels of its inventory, and then proceeds to retain only what’s required in the immediate short-term on hand.

Cost-Effective

As we go through these benefits, it’s pretty evident that accuracy plays a very important role in inventory management. More accuracy equates to fewer errors, and therefore the money and resources you spend in fixing them is reduced. Therefore, an inventory management software also proves to be cost-efficient.

When your inventory is effectively managed, the cost related to housing unwanted items is reduced as well. Since the system takes care of all your products being in stock, you are saved from the headache of having to fret over running out of items or having to renew the products. Thus, this opens up the possibility of a fresh set of products, while also saving the cost of holding on to your inventory.

Among the several benefits offered by an inventory management system, one is that you can automate the entire automate inventory process, which in turn makes it even more cost-efficient. If AI and robotics are effectively used, you will need fewer resources to pick, pack, and prepare the required items for your shipments.

Makes Planning Easier and Data More Visible

Equipped with improved business intelligence, features such as barcode scanning in your inventory management software allow you to transfer your data easily. Having a central data warehouse enables you to build your data assets for the close analysis of the internal system of your business. By making use of this information, you can answer numerous questions about your company, such as what your customers are being served, where your inventory is going, how useful agile inventory can be, what the customer demand tells about your business, and so on.

These pieces of information make the data related to your organization more visible, allowing you to plan in an easier manner. Business intelligence helps you in automating your outreach process, modifying your marketing accordingly, thereby increasing your conversions and profits. Therefore, an inventory management system not only makes your inventory more competent, but also helps with marketing.

Prevents Stockouts and Overstocking

Your inventory manager has so much to take care of. From making sure of the products remaining in stock to overseeing that none of it gets overstocked, it indeed is a laborious task, and human errors are bound to happen. Luckily for you, an inventory management software sees to it that you don’t have to take care of these tasks manually.

If there’s a product that gets ordered a lot, an inventory management software can ensure it’s in proper stock so that you never run out of it. Whenever a certain number is reached, the software will automatically work things out in a manner such that the necessary items are stocked up again. The same goes towards ensuring that the products are not overstocked where they end up taking a lot of space in your warehouse.

Enhances Customer Service

The main aim of any business is to gain more customers, retain them, and keep them; an inventory management software helps you achieve all of that. Once your inventory is managed and automated, you can be sure of the fact that your orders will go out on time and reach on time as well.

Certain inventory management systems also provide real-time updates that inform customers as to when a shipment has left and when they can expect it. All of these features combine to make your customers trust you more, thereby increasing the reputation of your business.

Summing Up

In order for your business to run smoothly, you need to ensure that every little task gets done quickly and efficiently, and if your inventory management is taken care of, then you can consider half the battle to be won already. With all of the benefits listed above, it’s clear than an inventory management system helps your company in more ways than one. It aids in automating tasks that makes steps such as writing down product numbers, box numbers, and so on, much easier. Therefore, invest in an inventory management software right away, and see how much smoother the entire process gets.