Inventory management software is well established as a valuable tool for keeping and maintaining accurate stock levels for businesses of any size. Users of this software are able to take advantage of key features such as real-time inventory data, system access by multiple users, and data analysis capabilities for forecasting. This allows a business to keep accurate stock levels, 24/7. Below are some of the fundamental ways in which inventory management software facilitates accurate inventory.
Narrowed scope for human error
When switching from a manual / spreadsheet system to a specialized inventory management program, simple actions like data entry become automated. While these actions are simple and easy, the scope for human error can be large over time. A single error for every thousand entries (a 0.10% error rate) may sound acceptable, but this could cause significant problems over time for businesses that do many thousands of these entries every year, especially when such problems are not detected. The automation provided by inventory management software may not fix all problems, but it will greatly reduce the scope for errors.
Specialized software capability
Another type of problem typically found in spreadsheet-reliant inventory management systems is data errors in programs that aren’t designed for handling large, complex data. These programs do not typically scale well as inventory becomes larger and more diverse, and they can be prone to file crash, slow-down, or human error caused by a crowded document. Using specialist software means your data will be handled by a system specifically designed for doing so, and this helps avoid such problems.
A good inventory management program will provide you with tools to carry out data analysis, and thus make accurate forecasts. This will help to give accurate inventory in the sense that a business should have just the right amount relative to demand, or at least close to – no forecast is 100% accurate! This will save costs associated with too much or too little inventory.
Early detection of pilferage or theft
The constant visibility over inventory allowed by inventory management software means that abnormalities can be spotted immediately. This means unpredictable problems like pilferage or theft can be detected straight away, and dealt with quickly to minimize their impact.
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.