Handling a business requires attention to detail and wise management. One of which is inventory or stock management. The growth of any business includes the increase in procuring and managing stocks. Needless to say, it is a complex task.
Inventory is one of the most valuable assets of a business. A huge amount of profit also depends on it. However, technology has made this part easily manageable than before with the use of inventory management software. In this article, we will tell you everything that you need to know about this system.
What Exactly Is The Inventory Management System?
Before going forward about the system, let’s see what inventory management is. Irrespective of the size of a business, each one of them requires inventory or stock management. It is the system to organize and keep a track of all the goods or ‘stocks’ that the company owns. Calculation of the revenue also depends on accurate management.
There are different types of inventory management systems or techniques. For instance, the age-old analog or manual paper technique, ad hoc spreadsheet system, and the latest cloud-based or barcode system.
What Is Inventory Management Software?
Gone are the days when you will spend hours counting the stocks? Apart from being time-consuming, it also involves many risks and is prone to mistakes. The latest inventory management software is computerized and cloud-based to keep your data safe and secure. The computerized system turns the whole inventory into auto-pilot mode and tracks the orders, supplies, and stocks.
This management system notifies you in due time when the stock is low and places the order on your behalf. Some of the advantages of this software are:
- The re-ordering process is automated and less time consuming
- Eliminating the chances of over-ordering or under-ordering
- It also offers the integration with accounting software for better tracking of profits
When Do You Need Cloud-Based Software?
Following are the signs that you need to incorporate software to be on top of your inventory game.
- Business Expansion
If your business is witnessing expansion, you need to change your system from spreadsheets to software. This will further help in your logistics.
- Frequent Stock-Outs Or Overstocks
Mismanagement in inventory can result in stock-outs or overstocks. To prevent that, you need automated inventory.
- Customer Satisfaction
The software can send an automated email to your customers notifying them when their order is processed or shipped.