Take control of your inventory and assets with internet technology (IT) inventory management software. While traditional inventory management used clipboards or excel spreadsheets, today’s digital climate requires a more streamlined approach to compete. Inventory management software can revolutionize your enterprise in the following ways:
- Cost Reduction: While some managers and business owners believe they can cut corners by relying on spreadsheets, this outmoded method can result in manual errors, downtime, and delivery failures. Inventory management software helps eliminate the costs of excess inventory, falling assets, and manual errors.
- Conservation of Manpower: Advanced software can organize your inventory and assets. As a result, employees who would have spent time tracking inventory are now free to use their skills and energy to improve your company.
- Compilation and Centralization of Business Information: Inventory software creates a database of key business information. This results in an invaluable resource for workforce delegation and success strategies.
8 Key Features Of Inventory Management Software
Consider the usability and learning curve before introducing any inventory management software to your company. The best IT inventory management software should be easy and straightforward for authorized users to learn. Some very useful interface features include custom views, location access, multi-level functionality, and input method.
- Custom Views: Since every business is different, good asset management software should have customizable views (based on variables you specify) to help organize the business.
- Location Access: If you are working in multiple locations (such as storage units vs. storefronts), solid software should have clear indications of how authorized users will access the system in all locales.
- Multilevel Functionality: The computer software should be easy to use at all levels of operations.
- Input Method (LIFO vs. FIFO): Depending on the business, some managers prefer to organize inventory as Last-In-First-Out (LIFO) and First-In-First-Out (FIFO) for input, stock tracking, and inventory management. Since deciding between LIFO or FIFO boils down to personal preference, a good system will allow you to customize based on business needs.
The successful collection, implementation, and interpretation of data can make or break a business. A good inventory system should be able to handle accounting data, the import and export of data, and historical data.
- Accounting Data: Having an immediate accounting integration feature ensures that you update your general ledger and reduce the likelihood of manual accounting errors.
- Importing and Exporting of Data: Excellent software lets you easily import or export your essential comma-separated values (CSV) and spreadsheets.
- Historical Data: Asset management software provides historical data in easy-to-read metrics. This format can help with the sales and operations planning (S&OP) processes and enable you to visualize room for improvement.
Automation and machine learning helps conserve manpower, allowing your employees to devote themselves to creative or sales needs. The expertly designed software enables real-time automatic, asset management and consumer and risk management.
- Real-Time Inventory And Equipment Updates More than any other system, management software enables the successful flow of products across supply chains. You can save money on logistics by knowing exactly where inventory is at any given time.
- Manage Current Assets – According to Generally Accepted Accounting Principles (GAAP), inventory is a current asset. The goal is to produce the number of sales that result in financial success for an organization. Using the right inventory management software can help you efficiently reach these asset management goals.
- CRM (Customer Relationship Management): From mailing lists and referrals to customer reviews and feedback, the right software can ensure proper CRM and repeat customers.
- ERP (Enterprise Risk Management): Risk is part of any business. The right software can automate data, allowing you to determine if a risk is worth it and thereby improve ERP.
- Sales Automation High-quality inventory management software can instantly monitor inventory levels and record points-of-sale (POS).
- E-commerce Data Solutions: Whether the online business uses a third-party marketplace (Amazon, eBay, or Etsy) or shopping cart software (Shopify, Volusion, Magento, WebShop Manager, or Lemonstand), an inventory management system can help sync orders, stock, and revenue. A good management system can also monitor payment processing from major portals such as PayPal, Stripe, Square, or WorldPay.
- Shipping Data Solutions: Inventory management software may also integrate with shipping apps in the following areas: the creation of purchase orders, the creation of shipment labels, real-time shipment tracking, and fulfillment accuracy. This can reduce lead time and allows enterprises such as warehouses to operate more effectively.
- Hardware Integration Solutions – The right software should integrate seamlessly into your operating system and existing scanners. In addition to hardware, management software provides an ingenious your inventory information in the software cloud.
One of the primary reasons for having inventory management software is asset tracking. A good software system enables tracking by preferred method. These methods may include using bar codes, mobile scanning, serialization, lot control, and kitting (bundles of raw materials for a finished product. Inventory software can help monitor stock-keeping units (SKUs) or other preferred units of measure, and it can help monitor variants in your products or services.
Reports And Analytics
Inventory management software makes it easier to read essential KPIs (key performance indicators). By providing accurate stock valuation at any given time, this software helps evaluate inventory performance, eliminate unnecessary expenditures, and determine GMROI (Gross Margin Return on Investment). Reports and analytics can also create formal documentation of your business for tax, legal, and financial reporting purposes.
Regular Updates And Support Options
The best inventory management software makes provision for regular updates to keep your business up-to-date with the latest technology. In addition, the IT company may provide technical support and training for your employees. It may seem simple, but the ability to ask for assistance from customer support can help you feel secure in managing every aspect of your business. In addition, if you currently do not have a full-fledged IT department, you may wish to consider a company that offers free installation for initial implementation.
Potential For Scale
Finally, the right inventory management software should demonstrate the potential to scale your business. Since expansion is a goal for most businesses, good software should have tools to help forecast future inventory, sales targets, and revenue goals. The right reporting tools and earnings forecast can help manage the growth of your business (rather than remaining stagnant or crumbling under pressure). With this type of support system, the sky is the limit for achieving substantive success.