July 18, 2022E-commerce
Inventory management is an evidently achieved component of supply chain management and plays a pivotal role for any business involved in buying or selling products. The flow of commodities from manufacturers to warehouses and inventory management control and also monitor to point of sale.
The trick is to keep a thorough record of each new or returned item. And the process can be extremely complicated, especially for large businesses, but the fundamentals are usually the same no matter the size or type of business under consideration:
The initial order place for the items to be used, purchase division.
Following delivery to the warehouse, the items are normally place in the stock sections as raw materials.Then, items are taken out of storage and transport to the factories to be transformed into completed commodities.
The stock regions receive finished goods back. And finally, the sales department is responsible for shipping the product to the customers. Lot numbers, serial numbers, cost of goods, the number of goods, and dates when they arrive at each step in the process are just a few of the data that inventory management employs to track the products as they move through the process.
Simple spreadsheets were used in the beginning to track the amounts of commodities in a warehouse, but today’s systems are far more complex.
Huge organizations can extensively customize today/s software. And interact with accounting and ERP systems, and go several layers deep.
To keep the right amount of goods on hand to fulfill customer demand, but stay profitable, several methodologies are used, such as stock review, just-in-time methodology, and ABC analysis methodology.
Using a spreadsheet for inventory
- Since many spreadsheet applications are cloud-based, there is no need to look for and install any additional solutions.
- It is inexpensive.
- Setting it up is simple.
- Generally speaking, it doesn’t match your management demands.
- Related to human error
- Difficult to scale
- Have fewer capabilities
ERP Inventory Systems
- Comes with integrated accounting, inventory, supply chain, human resources, and other functions into a one-click system
- Greater data protection is provided, as well as the capacity to manage intricate and extensive supply chains
- Facilitates sophisticated location and warehouse management
- Reasonable in cost
- Includes complicated workflows
- Extensive setup and training requirements
- Also, the presence of advance capabilities is not typically required by enterprises, especially small ones
Cloud-based inventory management system
- It serves as a single source of information, enhancing data visibility and accuracy for all users within the organization
- Supply chain design to manage operations flawlessly
- Stay current with the passing of time
- Minimal chance of mistakes
- Provide automated functionality for repetitive activities
- You really want a set-up
- Costs higher than spreadsheets
How to improve inventory management?
Focus on your needs
Identifying your top-selling items and keeping them in stock is a great start to keeping your customers happy. It’s highly unlikely that every item will have the same demand from customers, so focus on the ones that are most commonly used by people who buy them.
Engage with suppliers
Developing constructive relationships with your business’s key suppliers is important to secure reliable supply, unlock competitive pricing and understand emerging trends that may impact your company’s performance.
Inventory management using a system
It matters how your company manages order quantity, replenishment cycle durations, safety stock, forecasts, seasonality, and other factors. Adjust each procedure to your business requirements, making sure to note what works and what doesn’t.
It may be preferable to make a significant improvement in one area rather than a few modest ones everywhere.
Utilize real-time data
Analytics and real-time data can significantly improve your company. Consider implementing long-lasting inventory management software for the acquisition of the most accurate data.
This is one of the best methods to guarantee access to the data you require for decision-making and future planning.
Mobile technologies have transform by management of inventory. For instance, barcode scanning greatly speeds up the receipting and tracking of items.
Mobile sales apps give salespeople access to inventory information. While you’re at home, key business operations can monitor on vacation, or anywhere else.
Develop an inventory management system
Inventory management software helps you avoid human mistakes. And also automates important aspects so that you always have sufficient inventory has always sufficient on hand to effectively fulfill orders without being overload with unsold stock.
Having inventory management software helps your business in a number of ways. These include improved profitability, simple inventory processing, reduction of the headstock, and aged inventory.
It can also help you to reduce the likelihood of stock-outs, accurately track expenses, and also improve customer service.
Using an inventory management system has advantages
- Automated inventory management
- Forecasting inventory for peak season and holiday readiness
- Forestall stockouts and overselling
- Reduce the expenses of your online business
- Improved forecasting and planning for inventories
- Enhancing supply chain performance
- Easily add new selling channels
- Adding new channels is a piece of cake with an effective inventory management system
- It centralizes your inventory management into one place, and also allows you to still see your inventory in real-time
Why is inventory management important?
How you operate your company, treat your customer, and inventory management determines to increase sales.
Inventory management plays a vital role for every company that earns to sell items, no matter it’s a cottage level industry or a large wholesale distributor of sorts. Here are the main three causes:
- Run your business smoothly
- Keep customers happy
- How efficiently you can fulfill orders
- How visible you can be to your customers
- How promptly you can deliver your products to them
- Grow your company
Early stock system implementation is essential for planning for rapid expansion. You’ll have less time to do it and it will take longer the longer you wait.
Organizational change is a key factor for a company that looks forward to succeeding and growing.Nvntri system software is the first choice of many retailers because it has made it easy to manage multiple Daraz stores, and local stores, transfer stock between them, and also generate reports to get better insights about Inventory with the “One-Spot Inventory Management Solution”.
NVNTRI has multiple features like a powerful dashboard with information important to you, easy-to-use integration, reporting, and inventory management. So managing multiple online stores are easier than ever.