5 reasons why you need inventory management

Inventory management has become important for the survival of the organization today. If you do not have good control over your inventory, the day is not far when you will lose control over your profits.

In the last 12 months, about 81% of consumers experienced an "out-of-stock f-stock" situation, resulting in lower retailer sales and more frustration for store shoppers.

Globally, retailers lost a whopping 1. 75.75 trillion due to mismanaged inventory.

If you are still managing its inventory on spreadsheets or not managing it properly, your business may suffer and it is time to streamline your inventory management processes.

Managing inventory can be very challenging and can be really painful when you’re in a growing business. If you're having trouble tracking your inventory and if you're having trouble optimizing your warehousing and storage facilities, you've come to the right place.

Now, we will tell you why you need inventory management. Before that, let us tell you what inventory management is.

What is inventory management software? 

Simply put, inventory management is a set of processes that you use to monitor and organize your goods or materials at your convenience.

A component of supply chain management, inventory management monitors the flow of goods from manufacturers to warehouses and from these facilities to sales issues.

This includes retailers seeking to obtain and maintain appropriate merchandise while managing orders, logistics, compensation and related expenses.

Why do you need inventory management?

Today it is very important for an organization to understand its list in order to achieve both efficient and fast performance, even at an affordable price.

Effective management of inventory helps reduce costs that keep accounts and money in check.

From a customer standpoint, it helps you provide better customer services through faster delivery and lower shipping charges, thus meeting customer expectations.

5 benefits of inventory management software 

1.Tracking inventory

A good system will help you keep track of your inventory and offer a central view of the stock in the sales channels - how much is in stock, and where. It will also allow certain sales channels to allocate inventory, which is important if you have warehouses and distribution centres in multiple locations, thus, enabling warehouse management.

2. Control your spending

Having reports about your inventory helps you understand which stocks are performing well, as opposed to which stocks are currently taking place. Lack of proper inventory at the right time can mean backorder, extra inventory, etc. This increases the cost.

3. Improve your delivery

Late delivery is bound to give you a bad reputation due to stock-out. For tracking, it is important for you to know when the seller is shipping in inventory and when it will arrive. It helps you manage customer expectations through delivery, just like when and where they want.

4. Plan and manage the forecast

The software can help you improve demand forecasts by analyzing the data trends of well-performing stocks. This reduces your holding and handling costs, improves revenue and frees up cash flow. In addition, by planning and forecasting - you better meet customer expectations.

5. Reduce time to manage inventory

With a good inventory management solution, you can reduce the time it takes to track all the products and orders you have. Also, if your records are in place, you save on inventory recounting time.

Summary

Inventory management has become important for the survival of the organization today. If you do not have good control over your inventory, the day is not far when you will lose control over your profits. Don't let excess or lack of inventory determine your future. Invest in a good inventory management solution.

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