(STL.News) Inventory management refers to a stock maintenance strategy where companies maintain enough stock to meet demands without creating excess inventory.
However, companies have to invest a large amount of capital in inventory. You need to streamline inventory management to ensure no excess capital is locked in the inventory. In this article, you’re going to learn how to streamline your inventory management system.
How to Streamline Stock Management?
Inventory management is not a manual task, and the market is full of advanced applications that can streamline stock management. You need to invest in an advanced inventory management system to gain operational efficiencies and reduce overhead costs in warehouse operations.
Here are some facts to look for in inventory management software.
Today, businesses have multiple warehouses, and companies need to maintain adequate inventory levels in each warehouse to meet customer demands. Cloud-based inventory management software reduces the need for expensive hardware and software on-premises at each location.
With a cloud-based inventory management suite, businesses can add multiple warehouse locations to their account and get accurate and real-time inventory levels at each location. In addition, cloud-based software has minimal requirements, and you can access these platforms even from mobile devices from any location.
Maintaining adequate stock levels is necessary, but you cannot forget the importance of timely replenishments to avoid any stockout situations. Cloud-based inventory management software has an automatic replenishment feature that manages preferred stocking levels, reorder points, and lead times.
The software can automatically calculate the stock levels and the suggestions appear instantly on the screen in the order item list. Businesses with multi-location distribution requirements need to balance demand and supply across the entire organization.
No matter how streamlined your inventory management is, you still need to check the actual inventory level of critical items. Keeping an accurate inventory count can ensure you have the required safety stock and avoid any additional overhead costs due to excess inventory.
Cloud-based inventory improves inventory tracking and gives control over your assets. The software allows you to categorize inventory based on the value of transactions. You can also enter regular periodic counts for essential items to maintain the accuracy of the stock.
Now that you know the essential features of inventory management software, let’s look at the advantages of streamlining inventory management.
Benefits of Streamlining Inventory Management
Better Inventory Accuracy
Businesses need to consider various factors while managing inventory in the warehouse or stores. When you streamline inventory management, you can achieve inventory accuracy, and you know what is in stock and what needs to be ordered immediately to meet future demands.
Reduced Risk of Overselling
Today, most people order online and expect their products to be delivered on time. When you have streamlined inventory management, you know the stock levels in real-time, and you can avoid overselling, leading to delayed deliveries and damage to the brand image.
Stock can only earn money when it sells. When stock is lying in the warehouse, companies need to spend more money on proper storage and handling to keep it in good condition. With streamlined inventory management, you only have adequate stocks to manage, and you can permanently save money by avoiding overstock issues.
Avoid Excess Stock and Stockouts
Excess stocks and stockouts are two situations that every business wants to avoid. Excess stocks lead to increased overhead costs, while stockouts lead to the loss of business opportunities that translate into revenue losses.
Streamlined inventory management can give you insights into returned stocks and expiry dates. You can also get information about current sales trends and hot selling items and maintain adequate inventory levels to prevent a stockout of hot selling items.
Thus, you can see streamlining inventory management can help meet customer demands while keeping the operating costs low for maintaining stocks.