Whether you’re running a small mom-and-pop shop or a bustling international firm, you need an in depth understanding of your inventory.
At all times, you should know how much product you have on hand – your success, at least in part, depends on it. By knowing how many of your critical goods/products you have, you will know precisely when to re-order what you need and, in the process, prevent stock out.
And stock out, of course, is something every organization should avoid at all costs. Without the requisite products, business grinds to a halt.
So, how does a business achieve that level of control? Can a consistent understanding of a company’s inventory be reached?
It can…with a little help.
To ensure you always have an accurate understanding of your critical inventory, you need to use inventory software.
According to Webopedia, inventory software is “software designed to help businesses manage inventory, sales, purchasing, shipping and related functions.”
This is a shrewd definition because of it touches on the core benefits of inventory software. I’ve already spoken at length about the importance of knowing inventory levels, but inventory software provides more than just that function.
Users of inventory software can also gain critical insights into the company’s sales. If you are re-ordering products more often than you had in the past, for instance, then an uptick in sales may be the cause.
Re-ordering a product more often is a trend that also effects the organization’s purchasing department. But it isn’t just about buying more – the real, positive effect in this realm is the ability of the purchasing department to negotiate better contracts for products.
Finally, shipping is a key component of inventory software. When products arrive at your warehouse, inventory software will catalogue that receipt.
At Procurify, we spend a lot of time talking about the power and importance of getting “real time” data on your spending, but this applies to inventory management as well.
It isn’t enough to know your inventory levels, say, at the end of each month. To prevent dreaded stock out, you need to know your changing inventory levels at all times. Inventory software will provide you with these insights.
Finally, you may work in a business with multiple locations/branches. Inventory software is critical in such environments – it will allow you to manage each location effectively. For example, if one location needs a certain product more than another, inventory management software will allow you to push products/goods between locations to match demand.
What all of these features speak to, in the end, is that inventory software provides you with another level of control in your business. The more you know regarding the critical processes of your business, the better you off you will be. And Inventory management, without a doubt, qualifies as one of those critical processes. Start using inventory software.