Sometimes you know there is room for improvement, but you simply cannot decide where to begin. If there’s one area that can have a far-reaching impact on your business in terms of making money and saving money, it has to be better inventory management.
We’ve recently seen Target prioritise a $7 billion investment to optimise the company for commerce today with a primary focus on modernising their inventory management boasting the highest growth in 10 years. Below we outline five major benefits of modernising your inventory management solution now.
Multiple channel integration
Although often easier said than done, a common problem encountered using multiple channels lies in managing sales, orders, and inventory stock. It is prudent to have a reliable, centralised way of managing all your stock so your businesses does not end up placing duplicated orders or allowing customers to place orders for products that are out of stock.
An inventory management system that integrates with popular eCommerce platforms like Amazon or Shopify is a must to manage this. It can simplify all the administrative processes by syncing data between all these platforms into one central place. In addition to taking care of your eCommerce online channels through smart inventory management integration, your solution should also link with your physical stores so that the system may also integrate with your POS system and other sales data mediums.
Real-time inventory stock updates
If you are still travelling back and forth with spreadsheets or managing data in other manual ways this is not doing your business any justice where synchronising data is a real hassle. Modernising your inventory management system with a solution that updates your inventory stock levels instantly as soon as a sale order is placed can improve the overall efficiency and speed of your offerings.
Automatic supplier orders
If a business lets inventory stocks reach zero, this creates lost sales and decreases customer satisfaction until a new shipment arrives. The ability to automatically refill stocks by modernising your inventory management system can radically minimise this type of stock out situation occurring. For example, as soon as inventory stock for a given product reaches a minimum threshold, it can automatically generate a new order.
Scanner and sensory data integration
Although barcodes have been around for a while now, modernising inventory management means your business should be actually using a system such as barcodes, optical scanners, RFID technology or sensors with GPS tracking.
For example, these can all be used to help warehouse staff accurately find, pull and pick products from shelves, allowing your business to track product movements in the warehouse more easily. This also can reduce the risk of theft, as well as human errors that lead to inconsistent data when an audit or stocktake is performed.
Accounting systems integration
Getting an inventory management system that integrates with accounting software like Xero or Quickbooks will be really beneficial. This integration can take away manual arduous tasks such as adding an accounting entry every time you make a sale. A modern system can add an accounting entry automatically whenever a transaction occurs.
Smart inventory management systems can be a strategic part of a business’ cash flow strategy that can speed up processes, streamline activities and improve customer satisfaction. The ability to modernise inventory management systems and the benefits this can create should no longer be overlooked and underestimated.