Inventory Management Software; Why Do You Need It?

Inventory Management Software; Why Do You Need It?

Posted 23/10/2015

What is Inventory Management Software?

Inventory Management Software is a piece of software that is designed to help you keep track of all of your assets, hardware and software. It allows you to optimise your inventory for keeping consistent stock levels, free up space from products that are not selling so well, and provide more effective customer service due to better profitability and understanding of stock levels. Most systems are automated, at least to some degree, to automatically enter stock levels from orders as well as notifying you if you need to make an order because of any stock running low.

What are the Advantages of Using Inventory Management Software?

Inventory Management Software saves hours of time for those currently controlling your stocks. You will be able to see detailed forecasts on product sales predicted from real data in the past, and this allows you to effectively plan for periods of time where some products sell more than others, for example a garden product in the summer season. Identify baseline product prices that include inventory carrying costs, cost of replacement, and value in terms of space taken up within the warehouse.

You can effectively predict how changes in the season, changes in demand, service or even costs will impact your business model. This assists you in staying in profitable, regardless of the situation. You will also be able to rapidly implement changes across your entire business model to increase your ROI in a short period of time. Inventory Management Systems in general exist to empower your business from backend to front end, and working with accurate, always up to date information allows you to make your space to product ratio as profitable as humanly possible.

A central dashboard area makes your stocks and performance visible in an easily digestible manner, allowing you to accurately estimate your performance for periods of time, as well as allowing you to identify potential problems and address them before they impact profitability. Monitor performance across multiple locations from one dashboard, and track the inventory for multiple locations from the same dashboard to understand fully the differences between your different locations. This will allow you to identify any changes between your different locations and then improve your less profitable locations.

Who is Inventory Management Software For?

Inventory Management Software is for any business that has a lot of assets or stock to keep track of. It has the functionality to be beneficial to not only retail businesses, with the ability to track software licenses and hardware to make your accounting and valuations more accurate. Having more accurate forecasts on asset value is beneficial to any business, and will help you to understand how your business is growing in its overall value.

Inventory Management Software is most beneficial to those who do sell goods to consumers however. The ability to track products from order to customer (and everywhere in between) is a huge advantage for any retail outlet. Never lose out on obsolete stocks again, enrich the value of your floor space and plan in advance for seasonal, or trend based increases or decreases in sales. Inventory Management Systems will keep your customers happy. They will never have to deal with a “sorry, this item is out of stock” message again, which will assist you in retaining customers as they will see your company as a reliable source.

Do I need Inventory Management Software?

If you are a brick and mortar, or an online retail business the answer is quite simply “Yes”. Having a system that tracks your stocks and sales is a huge step towards eliminating errors and misjudgements, as well as fully empowering you to understand each of your products full value with space in warehouse taken into account. Enhanced business forecasts will allow you to gain valuable insights on product performance, as well as identifying the lifecycle of your products on an individual scale. Inventory Management Software is a huge benefit to any retail, and non-retail business. You can save endless time and money with this software, and improved efficiency is good for everyone.