Getting a handle on accurate stock control and management is a must for all businesses who carry inventory. For many companies, this is one of their biggest ongoing investments and an area which can greatly affect profitability and overall operations.
Inventory management software provides a number of solutions and features, often with a large scope for expansion and growth. Depending on your business’s needs and desired level of automation, there are a wide range of products and services that better enable the tracking, management and accounting of stock across all platforms of your company’s operations.
Let’s take a closer look at some of the key ways that inventory management software can help facilitate stock accuracy and better inventory control.
Avoiding over and understocking
Keeping the right amount of stock for your operating needs means striking a balance between too much or too little stock. This is sometimes a delicate and difficult task, but one that can be better enabled through the use of management software and good planning. In an ideal situation, a business will operate with just the right amount required for their current operational needs, knowing that too much stock means tied-up capital, and too little stock means lost sales.
Inventory management software provides some great solutions for the accurate control of stock, from ordering and manufacturing, right through to sales and delivery. As inventory is a constantly changing variable, the use of good software solutions can usually offer far greater control and flexibility than manual methods.
Knowing what’s what – you can’t sell what you don’t have
As a core principal, knowing what stock you have on hand, as well as what stock you have ordered or recently sold, is one of the most important pieces of information for any business. Obviously you can’t sell what you haven’t got, and if you consistently can’t sell to customers due to stock inaccuracy, your business will struggle to reach its potential.
The flipside of the same coin is the over-ordering or manufacture of unpopular, obsolete or slow-selling products. Being able to adjust your supply to meet demand is an essential characteristic of successful businesses and management software is a reliable way to monitor and control this. If you know what’s what with your inventory and stock processes, then you can create better inventory flexibility.
Getting stock where and when it’s needed
For businesses that require the regular movement of stock between locations, from suppliers or to their customers, accurate inventory control becomes an important part of their overall operations. Manufacturing businesses, for example, often have a large amount of raw materials and parts that need to be moved, ordered or replaced at short notice, in order to complete production and meet sales demand.
Management software that enables accurate stock control can assist in the streamlining and optimization of the processes that are central to a business’s daily functioning. For many businesses, the more accurate their stock control, the more efficient their processes, and the more profitable the end-result.
Making use of planning and forecasting
Providing both real-time and long-term product and sales analytics, the best management software can help optimize a company’s forecasting and planning. Even for small businesses, or those with a minimal amount of stock, accurate planning is one key strategy towards better efficiency and control of resources. As planning and forecasting is dependent on accurate data, the utilization of software solutions that provide this is essential.
Go with the flow
One of the ongoing challenges for many business is keeping abreast of fluctuating supply and demand. As a key aim, the use of good inventory management software should help businesses to better ‘go with the flow’, enabling them to make the necessary adjustments as and when needed, furthering the accuracy of operations.
Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.