An inventory management system that runs seamlessly is one of the core pillars of online commerce. The goal is to avoid under-stocking and delays while maintaining resources. The leading companies in this respect tend to integrate the inventory software directly with the back office and accounting systems to ensure optimized operations. If done well, companies will be able to understand when to make purchases effectively to eliminate uncertainty and unnecessary costs. So, it is obvious that having a “smart” inventory management system is important, but what are the overall benefits for your online store?
There are 3 benefits that have been considered essential when looking into smart inventory systems. These include:
- Optimize inventory to meet product availability and ROI goals
- Save money from inexperienced purchasing decisions
- State inventory accuracy in financial reports
Now, let’s elaborate a bit on these benefits in order to gain a better insight into how they are good for you.
Inventory Optimization
The world we live in today has customers demanding their “fresh” product right now. Along with this, investors tend to prefer to not have their capital tied up in inventory. Systems like storing, counting, and reworking can slow down operations and reduce the availability of products that are in demand. Planning for the right amount of inventory requires sales order, purchase order, and planning systems to have real-time visibility of all inventory.
Saving Money Due to Inexperienced Purchasing
A key benefit of smart inventory management systems is the up-to-date access to inventory information at your disposal. This can help keep unnecessary inventory purchases to a minimum. In the same respect, there is also money to be saved by storing inventory in a smarter way. Having the ability to locate items at the correct place in the warehouse can save a significant amount of time and help get orders out quickly and efficiently. Orders are out the door faster because time is saved.
Financial Accuracy
Annual reports and tax accuracy are crucial. The recorded value in books must match the physical value in the warehouse. To ensure that this is done in the most accurate way, merging systems with the back office can aid in the ability to see inventory more easily. By linking these systems up, you get a complete idea of the expenses of goods over their lifetime. This also gives you a full view of each item from every angle which allows you to see where profit margins are high and what items you should consider promoting to sell. Plus, companies can also see the dead-stock and remove it before it eats away at total income.
There are many paths and avenues you can take when looking into a smart inventory management system. The best you can do for your company is to find an ERP with inventory management modules that meet your specific needs. Whatever you end up choosing, the benefits of utilizing smart inventory software far outweigh the potential negatives and have the capacity to save a lot of money through the years.
