For any business, big or small, maintaining inventory is crucial. How much stock you have, how much has been sold and how much would be required to be purchased so that the business does not suffer due to unavailability of stock is one of the main considerations for any businessperson. Keeping track of the inventory and proper management entails proper planning and efficient system.

Every business has its own way of maintaining inventory records. Few use Excel spread sheets to know what stocks they have and how much they have sold, others directly deduct the stock from the invoices and the bills against the purchases they have made. Both the above methods might work for smaller businesses and require physical inspection of the stocks but what when one plans upon extending the business and is required to keep bigger stocks. Excel sheets and deductions from invoices will become tedious and time consuming.

Without a proper inventory management system, you might not keep one product that is high in demand in required quantities and store the unwanted products or might waste valuable time in keeping score of the stocks, the orders from the customers, products waiting to be shipped, and orders pending from the suppliers.

With the advent of technology and software, the task of inventory management has been made quite simpler and efficient too.

Let us understand the top benefits of employing inventory management software.

• Increased efficiency and productivity

Knowing your complete inventory will surely save you a lot of money. There is no use in putting your money in the products that are in abundance in your storage however high selling they are. Based on the analysis and the selling pattern portrayed by the software, you can order what is required, as and when.

Inventory management software improves efficiency in maintaining the inventory. Also, it helps in getting retail analytics displaying the trends in your sales, inventory, your customers, and other important facets that help in making better business related decisions, thereby, increasing productivity.

• Cuts down costs

Cut down cost only means one thing to most businesspeople and that is increased profits. Imagine you are into an e-commerce business and have orders coming from both online and offline sources. Having the right amount of inventory is the key. Keeping less stock will have you sell out on products and the need to reorder them which will include increased transportation and handling charges and holding onto huge stocks will only increase the costs including cost of storage, handling, and if by any chance there is a natural calamity, dead and waste stock.

You need to be prepared to meet the requirements of your customers’ orders from every channel.  Having a management software will help in proper planning of inventory and will help in cutting down costs and thereby, increase your profits.

Also Read: Where is Retail Analytics Heading?

• Automated management

Physical inventory management involves hours and hours of filing purchase orders, counting stock, and making reports which prove to be grilling and tiring after a point of time. Ask any of your employees involved in inventory management and they will vouch for the same.

Having inventory management software helps in saving lots of time and efforts. The time that was spent in shuffling through files, checking and rechecking stocks, going through bins, and other tasks, now can be spent of finding efficient ways of improving your business. You can now spend more time in marketing strategies, looking for greener avenues, and increase your profits.

• Have a bird’s eye view of incoming and outgoing stocks

Inventory management is not only about what you have in your stock, what has been already sold and how many needs to be ordered. It is also about the orders made to your suppliers and the orders you have received from your customers that are pending and yet to be received or dispatched.

With inventory management software, you can keep track of pending orders and your complete distribution and supply chain. You can keep track of current stocks in addition to all the incoming and outgoing orders.

As and when the retail business grows, better management system is required for smooth running of the business and proper inventory management will ensure smooth functioning. Employing an inventory management software will help in making your life simpler. Choose a software that suits your business and works for you. Do not be fooled by tall claims or the marketing gimmicks.

Have any doubts regarding which software will suit your business? Get in touch with our experts.