Facing a challenge in Inventory management? Select the right software to fix it
Business Inventory Management is a serious challenge for many companies. The best practice of Inventory management is the key to deliver efficiency and to effectively maintain a competitive position in the marketplace. There are many challenges that businesses facing in Inventory management. Today multichannel marketplace experiencing this issue. The need for getting the right product to the right place within a given strict deadline is a critical requirement in any business due to increases in customer demand and expanding products
Moreover, Inventory management is a crucial function for any product-oriented business. “First in, First Out,” or FIFO, and “Last in, First Out,” or LIFO, are two common methods of inventory valuation among businesses. The system you choose can have strong effects on your logistics, income, taxes and profitability.
FIFO – Companies in operation on the principle of “First in, first Out” value inventory on the belief that the primary product purchased for marketing became the primary product sold-out. In some cases, this might not be true, as some corporations stock both new and old things.
LIFO- The “Last In, First Out” or LIFO methodology of inventory entails using current costs to count a measure known as “the value of products sold,” as opposed to using what was paid for the inventory already available in the stock. If the value of such a product has inflated since the initial purchase, the “cost of products sold” measure are going to be higher and thereby reduce profits and tax burdens. Nonperishable commodities like fossil oil, metals and chemicals are oftentimes subject to LIFO accounting.
Some of the features of the Inventory Management software are:
- Asset tracking
- Service management
- Reorder Point
- Product identification
- Inventory optimization
With the help of Inventory management software you will get numerous benefits to your business are:
- Simplified the management of inventory
- Improved business negotiations
- Reduced the risk of overselling
- Cost effective
- Avoid the stock-outs and excess stock
- Help to make more profitable business decisions
- Better product visibility in the event of a recall
Before selecting the right software for Inventory. You need to identified the inventory management challenges first to optimize the inventory and fix the issues
- Excess Inventory
- Low product turnover
- Poor service e level
- Failure to keep track of stock
- Difficulty in identifying the demands of customers
- Lack of visibility
When there are problems and challenges to manage the inventory and fix the issues then selecting the right software can be an essential step towards achieving it. A right and good software provide consistency, accuracy and minimization of human error. With software comes with the ability to, not only control but, meaningful monitor the whole supply chain.
You can select the right software by identifying the business needs and purpose of the matter as:
-
Understand the needs of stock control
Take a look at your products: what kind of products do you sell? You need to choose a platform that can handle the kind of items you stock – clothes, for example, have multiple variations, like colour and size.
-
The simplicity of the software
You should consider the simplicity of the software. Do you want to implement a complicated software where your employees may need to be trained to use in which training on the employees will likely to add the cost, or rather you will go for the simple software so that no such training required?
-
Manage the orders
You need to ensure that how many orders you manage. And make sure online inventory management software can handle the number of orders you are processing or it will not leave you out of the line if you only fulfil a few orders a day. Most online inventory management software that offers various different services with price plans, so that you can choose the correct software as per the requirement or depending on how many orders you manage.
In addition, It’s also worth considering a system that groups your orders into different categories (such as order status, payment status, etc.) so that you can see and manage them easier. -
Compatibility of the inventory management software
It is very important that you select a system which is compatible with your existing system and technologies. For instance, it’s possible that some of the work will operate on only certain devices or operating systems. You need to check and examine your current systems and ensure whether the online order management system can integrate with it or not.
-
Future targets and goals
Consider future targets and goals. If you are planning to expand your business, you need to make sure that the online inventory management system can respond accordingly, and fulfil future developments.
-
Figure out the cost of the inventory management system
Cost is also the most important and key issue when selecting the online inventory management system. Check your budgets and identify how much you have the potential to spend on the software. According to your budget, you can figure out the cost of the software to choose the best over the various software which is suitable for you.
-
Report on the Stock
Let’s take a situation where you want to know your daily stock valuation across multiple locations. Is your software has the ability to handle this. Make a list of reports that you want as per your requirements and a list can help to compare against the different providers.
Therefore, identifying the business challenges and problems in the inventory management, and fulfilment of the right software with the right purpose or need. There are other things that should be considered such as decide the budget, integrations as per need etc. Fixing the issues in the business with the right software can help by considering all the factors which are already mentioned.
No matter how big or small your enterprise is you can ask the vendor to customize the app to suite your requirement and budget. The good thing about latest technology is that these applications are hosted on web servers hence are accessible universally.
Inventory management software helps you to securely and efficiently manage your software and keep a more accurate record of your stock. This means you’ll be a lot more effective in turning orders around and will have a much more simpler invoicing procedure.
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