Inventory management is crucial for every business, especially the inventory-intensive sectors like manufacturing, retail, and food service. Inefficient inventory management optimization can either cause huge losses. For example, a shortage of inventory can result in loss of customers, while excessive inventory can increase the risk of spoilage. Therefore, it is imperative to have an inventory management system to supervise the flow and distribution of inventory.
It can be done either manually or by using inventory management software. The former is feasible only when you have limited products, whereas choosing the latter if you have an extensive retail or manufacturing business with huge inventory. Let’s check out other advantages of having inventory management software. Before that, let’s understand a bit more about inventory management-
What is inventory management?
Supervising the flow of goods and materials is known as inventory management. It can also be defined as acquiring and storing the goods until they reach the point of sale. It might also include warehousing and processing the stored items. Generally, there are four types of inventories-
- Raw materials
- Work in Progress
- Finished goods
- Maintenance, repair, and operations
What is inventory management automation?
It can be referred to as digitization of inventory management with the help of advanced inventory management tools or tech-enabled inventory management systems. Automation of inventory management not only reduces dependence on human resources but also brings operational efficiency and transparency.
Advantages of inventory management software
Integration of inventory management software renders a plethora of benefits; five of them are-
- Saves time
Analyzing inventory, updating the stocks or quantities manually, and managing other management processes consumes a significant amount of time and human resources. These resources can be utilized to accomplish other critical tasks of the business.
2. Precise inventory stock
Proper inventory management optimization can help in avoiding shortages and excess inventory. In other words, it can keep the stock levels optimum and accurate. It prevents losses to the business while improving the brand reputation. The software automatically alerts you when restocking a product is needed.
3. Improves delivery quality and speed
Delivery quality and speed majorly contribute to the success of your business and the satisfaction of your customers. As per online studies and surveys, 81% of the customers experienced an “out of stock” situation for an item and felt disappointed. Automation can help avoid these situations by restocking the inventory beforehand. It can also help you to forecast highly demanded products so that you can maintain the stock accordingly. By automating processes and reducing manual dependency, inventory management software can also improve the speed of delivery.
4. Reduces risk for errors
Manually executing inventory management tasks might not bring accurate outputs. In such a case, there is more room for human error. But when you choose to automate inventory management, all the major processes are done through the software, which brings precision to the results.
5. Reduce cost
By minimizing the chances for excess inventory, inventory shortage, inventory damage, and other issues, inventory management software lowers down a significant amount of business cost. Also, it streamlines the entire inventory management process.
By now, you must know what difference inventory management software can make to your business. To get the best inventory management software, you can rely on companies like Shipsy. The company offers various SaaS-based software that can be integrated smoothly and accessed from anywhere on any device. Its logistics management software comes up with a built-in inventory and warehouse management feature, so you don’t need to purchase the one separately. Moreover, you can also enjoy end-to-end logistics management. Get the software today to forget all your logistics and inventory management problems. To get inventory management software free demo, reach out to Shipsy’s team.