Why an Inventory System is Essential for Business Growth

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Every business wants to achieve growth and success. Large or small, local or global, it is the growth of your business that will provide the needed momentum and opportunity to succeed. There are of course many approaches to enabling and maintaining growth. One key area that yields great results when done well, or disastrous results when done badly, is inventory control and management. Using correct and efficient systems can help foster growth and productivity as well as provide a stable platform to support further growth and operational health. From spreadsheets to automation, manual imputing to barcode technology, there are many factors that come into play. Let’s take a look at the main ways that an inventory system is essential for business growth.

Meeting the many demands

For smaller businesses and many start-ups, using spreadsheets to track inventory is a cheap and easy way to begin. But as an ongoing strategy this is very limiting and usually ends up becoming a liability. As the demands of your business increase along with the amount of stock made, sold or ordered, the need for systems increases. The goal for all businesses is to be able to meet these challenges, adapt to them and convert them into growth.

Inventory control and management systems such as Unleashed are essential for the ongoing efficiency of your business and to meet the ongoing demands of operation. They provide accurate tracking of inventory, valuable forecasting capabilities and the ability to use automated techniques and functions too difficult to do manually.

Manufacturing businesses are able to automate the manufacturing inventory process from purchases to sales. Techniques like Just-In-Time, Build-to-order or Accurate Response can be implemented via an electronic inventory system and stock levels can be tracked and adjusted in real-time. The use of such functions is imperative for a business to grow and survive.

Even for non-manufacturing businesses, the advantages are huge. Everything from the quantity and location of stock to correct forecasting and safety stock requirements are covered by a good inventory management system. The ability to know exactly what you have as well as what you need is essential for all businesses looking to nurture growth.

Advancing technologies have made the use of mobile, cloud and SaaS (Software as a Service) features and services an important part of industry leading businesses. The best software providers have started to build these technologies into their products, making the task of implementing them that much easier.

Streamlined and efficient operations

There isn’t a business around that doesn’t want to streamline their operations and increase efficiency. As your business grows this goal gets harder and harder to achieve. The sheer amount of inventory data being generated is enough to warrant the use of an inventory management system and when you add to that the operational challenges of your warehouses, sales team and accountancy requirements, it ceases to look like a good idea and more like an essential requirement.

Automated inventory systems provide a platform for all your operations to be run through. Barcode and POS technologies, cloud and mobile access, ordering and invoicing can all be handled by a good inventory management system.

Accurate and insightful accounting

Accounting is an important and necessary part of any business. Many threads meet and end at this department. You could say that all roads lead to accounting. For businesses operating with inventory, having the correct details at your disposal is fundamental. One of the many benefits of an inventory management system is the accounting process that it makes possible. Regardless of the techniques you use or the way you use them, a good system will provide the data necessary to maximize the positive effects of your accountancy.

Avoiding critical mass

It is important to know your systems are up to the challenges of a growing business. As your operations and stock increase there will inevitably be some learn-as-you-go scenarios. But make sure you choose a powerful cloud inventory system that is able to handle your business as it grows!

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Melanie - Unleashed Software

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.

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