Many companies need a way to monitor inventory and manage inventory for a variety of reasons. An inventory management system provides information that can help a company maximize revenue and grow. Some benefits of an inventory management system include:
Better Inventory Management
On average, inventory accounts for approximately 30% of the total assets of a company. When inventory is properly handled it becomes an essential part of maintaining inventory and helping to manage inventory, which can lead to better revenue opportunities for the company.
An inventory system helps track all inventory so that there are no unaccounted items left on the shelves or in storage areas; this means that any products that may not be selling well quickly become easier to identify and things like forecasting future needs becomes more accurate, allowing companies to keep up with demand without stockpiling units they won’t need or letting products expire before they’re sold. Inventory management systems also allow stores to maintain sale prices on inventory based on the number of units they have left, or to increase inventory prices if inventory is low.
When a company has access to inventory data that’s gathered through an inventory management system, it becomes easier for them to predict future inventory needs and shipments based on historical sales trends. When retailers have accurate information about inventory levels they can more accurately plan inventory purchases from suppliers so that products are never in short supply or overstocked before being sold. By utilizing the data from an inventory system companies can adjust future inventory orders based on analysis of what items are selling well in different markets, allowing them to minimize any excesses or shortages of inventory when it comes time for restocking shelves.
Reduce Costs & Improve Customer Satisfaction
With implemented inventory management software companies can track inventory at a more detailed level while also being able to monitor inventory levels in real time. This allows them the opportunity to reduce the amount of inventory they hold and any excesses, which can impact costs by reducing storage space needed for inventory as well as cutting out unnecessary shipping fees.
In an inventory management system retailers are able to determine when inventory is getting low on certain products so that they can be re-ordered before running out completely. By reacting quickly and managing inventory effectively retailers can ensure that customer satisfaction remains high because there’s no risk of losing customers due to empty shelves or lack of product availability.
Increase Revenue Opportunities
A solid inventory management system will allow you to find underperforming items, offer discounts if inventory levels are low and see inventory trends that show potential to increase revenue. For example, if inventory is always high on a certain product then maybe it’s time to take them off the shelves and sell them as closeouts, or consider buying out other similar inventory such as inventory from suppliers who may be moving away from those items so you can offer your customers another option.
Better Customer Service
When retailers have access to inventory data they can more easily serve their customers better by tracking inventory and offering products that will meet their needs. A company with an inventory management system has access to all inventory across the entire supply chain which means that they’ll know if a customer requires a rush order or if there’s not enough of something for next day delivery. Retailers with inventory management systems also have the ability to make inventory available for same day delivery in some cases, giving them a competitive edge over other companies offering similar products.
Overall, inventory management is more efficient and less time-consuming. Inventory managers and inventory employees save a significant amount of time each day by using inventory management systems. This allows inventory managers to complete other company tasks with the extra time they save.