The complexity of inventory management only doubles in size as your company thrives and keeps getting bigger. This complexity of managing this also keeps getting further out of hand making it almost impossible to do it manually. As it comes with a slew of drawbacks. Everything takes time, from processing orders from each sales channel independently to performing frequent manual stock inspections so you can adjust your stock levels across each platform. And you'd be better off using that time to grow your company. Because of the time it takes to reconcile this data, there may be a lack of insight into real-time stock levels, lags in reordering when stock levels are low, and hence stockouts and lost sales.
Not to mention the possibility of human errors leading to issues such as overselling, which can result in dissatisfied consumers, lost marketing money, and reputational harm, as well as your suspension from some markets. Hence,implementing an inventory management system to automate the tedious labor for you is the only rational answer.
What is Inventory Management system?
Inventory management is an important part of any business. It helps businesses keep track of what they have, how much they have, and where it is. Inventory management systems can help businesses save money by making sure they have the right amount of the right things. They are necessary for businesses to make more efficient decisions about what to produce and how to produce it. .
Benefits of Inventory Management System
Inventory management systems can have a number of benefits for businesses. They can help to improve accuracy and efficiency in the distribution of products, reduce the need for storage space, and reduce the amount of time that is spent on inventory management tasks. Additionally, inventory management systems can help to ensure that products are available when they are needed, which can lead to increased sales and profitability. By having a system in place, you'll be able to better manage your inventory, which can lead to increased profit margin and also help establish discipline in your business.
- Inventory planning and forecasting: Any successful firm relies on accurate reporting and data. A software system that interacts with all of the marketplaces and sales channels you sell on, as well as shipping and third-party logistics (3PL) providers, will guarantee that all information is correct and also real time update and transparency. This will enable improved corporate decision-making, more accurate inventory forecasting and planning, and hence reduced waste in terms of expenses associated with retaining unsold product or stock.
- Improved supply chain operations: When it comes to the supply chain, unexpected obstacles are common. Retailers and ecommerce enterprises can more successfully implement a supply chain diversification plan if they have an inventory management system in place. If you have several suppliers, you lessen the chance of extended product wait periods if one of them fails to deliver on time. You can plan ahead of time for a certain time period, such as peak season, to order the correct amount of goods from a supplier and avoid problems.
- Automated management system: Automation is one of the most significant advantages of an inventory management system. Automation eliminates the possibility of human error, saves you countless hours, and assures that you do not make errors. Once a set of rules has been established, this system is capable of doing repeated tasks with little manual assistance. This not only gives you real-time access into your inventory levels, but it also instantly changes your stock count when a sale is made. This functionality is essential not just for accurate forecasting but also for providing a positive client experience by preventing overselling. Automated inventory management also provides real-time visibility into where your goods is located, which is critical if you keep stock in several places such as a warehouse and a retail location.
- Avoiding Stockouts and Excess Stock: Better management and planning enable a company to reduce the number of days an item is out of stock, if any, and avoid keeping too much inventory.
- Holiday and peak season forecasting: Because of precise demand forecasting, when order volumes grow significantly due to holidays or events throughout the year, such as a large marketing push from any ongoing trend, the quantity of inventory you have will stay up with demand. Historical and seasonal data may also be used to determine any sales patterns that necessitate stock level modifications at different periods of the year.
- Better Terms With Vendors and Suppliers: Inventory management also includes details on which items sell and in what quantities. Use that information as a bargaining chip with vendors to get better rates and conditions.
Choosing the right software with Nuport
Inventory management can make or break a business, and having visibility into your supply at any given time is vital to success. Decision-makers may successfully manage their inventories and save costs with the appropriate tools and functionalities with the help of correct software for their company. Nuport’s Inventory management system can offer your company with all the benefits a fully automated and integrated system can provide you and more. Nuport’s system offers fastest inventory updates in real-time, reporting and accessing insights to maximize your potential sells, helps you with demand planning, overstocking and also to prevent overselling, helps you maintain a good relationship with your supplier with automated PO process and lastly, inventory tracking to reduce supplier lead times and shipping costs allowing you to keep lower stock levels and decrease warehousing expenses. To reap all these benefits of an integrated inventory management system and for your company to stand in good stead, schedule for your demo today!