What is the need of inventory management software?

Overview of inventory management software

Inventory management software is a software system mainly used for tracking deliveries, order and sales. It is used in the manufacturing industry to create a bill of materials, work order and other production related documents. Inventory management software is a main tool for organizing inventory related data and that will stored generally in hard copy form or in excel spread sheets. 

The software in inventory management will help you to improve demand forecasting by analyzing all the data records from well performing stocks. It also minimizes your holding costs and handling costs, improves your revenues and frees up cash flows. You can deliver best products as per the customer’s requirements.

Features of inventory management software

Upgrading to an inventory system makes keeping tracking of your inventory easier and putting less strain on you and your employees. Here a list of features for inventory management system is given below as follows:

Automatic restocking

If your product is running low, you don’t want to wait until it is out of stock. Out of stock order not only loses the sale but also it can erode the customer trust for your business. The best feature in inventory management software is it has the ability to set up automatic restock of products. You can also set a limit for each item in a stock to avoid confusion. If your product is running low below the limit, inventory management system places an order with your supplier to restock the low items.

Mobile access

Inventory management system offers mobile access for online retail shops with one location and it is a very important one. You need mobile access to work with them for single location and if you look for multiple locations you can work in worksites. 

Reasonable price

Some list of inventory management system offers at reasonable prices. Less expensive inventory system for very small business will run about $100 a month. If you are not in a position to deposit your cash or disrupt your cash flow, small business loan could be a financing option. With a quality inventory management system, you won’t need to get worry about being out of stock when a customer needs your products. 

Bar coding and scanning

Bar coding is a visual and machine readable representation of data. It is electronic data entry by using a scanning device. Once the data is scanned in a bar code by using a scanning device, the data is accessed and displayed from the user to learn information and to take an action.

Configuration

Inventory management system is successfully implemented across all industries and merchandise without customization. Some of the configuration given below as follows:

1. A product with different size, shape and colors are configures to show the total product sales and to stock on hand by style of the products.
2. Having flexibility for control of different types of hardware as well as interfaces to be connected to the inventory management system.
3. It also has the ability to adopt of your detailed description of accounting structure.

What is stock management software?

Stock management software is the process of practicing control, inventory, storing, ordering, and tracking. It helps small businesses and freelancers to keep tracking of company assets. Inventory stock management is also called as stock control, inventory control and inventory management. It is used for many applications and that includes maintaining a balance between two inventory systems and tracking inventory as it is transported between various locations. 

Differences between inventory management and stock management

The terms stock management and inventory management are used interchangeably and both terms have separate meanings. 

Inventory management

Inventory management includes in a small business and its finished products, and also raw materials are used in inventory to make the best products. Machinery technique is used to produce all the products and building in which the products are made. Producing each items and it is sold by your business is a part of its inventory.

Stock management 

Stock is a finished product and it is sold by the business. Raw materials are also used in stock management. For example, a car dealerships stock includes car and also it car include engine parts, tyres and other car based accessories. 

Major difference between inventory and stock

While stock deals with the products that are sold by the business whereas inventory includes the goods and sale product used to manufacture them. Inventory takes into account of all assets of business and it is used to manufacture the goods and it also determines the sale price for stock whereas stock determines the amount of revenue businesses that generates.

Key benefits of inventory management 

Efficiency and productivity

If you want efficiency in managing your stock level products, so that your business is cash flow positive. Keeping your stock means tying up your money with them. You should understand that efficiency and productivity is very important in inventory management.

Low cost

You can manage your orders across your sales channels. This is the best way for you to minimize the loss of sales and you need to restock the next big thing for the upcoming season. If you want to minimize the carrying costs of holding stock, inventory is a critical one. Carrying costs include passing fads, disasters, taxes, theft, insurances and storage fees.

Automation of manual tasks

You cannot want to be sitting around doing manual data entry tasks. Automatic tasks are carried out over manual tasks. It is the best idea to leave all those things to software to automate the task for your convenience. It embraces bar-coding and scanning technology in inventory management. Create sales orders straight away by scanning all the items in the shipment. 

The bottom line

By using Inventory Management Software you can achieve better efficiency and productivity operations. It will minimize the cost and maximize the sales. By referring above description, try to understand the need of inventory management software and make use of it for your own purpose.