Everything you need to know about Inventory Management
Everything you need to know about Inventory Management

Share

Date: 30 Apr 2021


Everything you need to know about Inventory Management

Inventory is one of the main cogs of the business. Without the proper management of the inventory, it becomes impossible for your business to grow. To manage the large stocks in your warehouse and to keep accurate track of the inventory, it is important to resort to a proficient inventory management system. But before we list out the top inventory software, let us delve into all the essential parts of inventory management. Read on! 

 

Important features of an inventory management system

An efficient and competent inventory management software will have the following features-

  • Inventory management and tracking
  • Forecasting with powerful insights 
  • Reduce the risk of stock-outs
  • Drive sales 
  • Keep inventory optimized 
  • Real-time visibility 
  • Inventory backups and security

 

Common inventory mistakes that small and medium-scale businesses make

It could be a daunting task to keep tracking the inventory. It might get overwhelming at times to manage large stocks, and businesses end up making silly mistakes. Let’s take a look at some of the common inventory management mistakes that small and medium-sized businesses can easily overcome with inventory management software, such as with BUSY software download.

 

  • Adding unnecessary stock

You might want to buy a lot of your stock and keep it aside. But this might become a big issue when trends change. It is essential to keep track of the sales and projected growth to avoid ordering products that are not required or out of the movement. Similarly, too many product variations will only add to your expenses. You can avoid ordering a lot of different products of the same type. This will help you minimize the inaccuracies in calculations and help you keep track of your expenses and stock. 

 

  • Not keeping a regular track of inventory

If you want to be ahead of your competition, make sure to track your inventory regularly. Not keeping track of inventory will only lead to poor forecasting and prevent you from being with the trend. It is incredibly crucial to understand the trending products, the trending products, how many of those you already have, or what your customer is constantly looking to buy. 

 

  • Using spreadsheets to keep track

Simply relying on spreadsheets can cause many inaccuracies that your business cannot afford. To build a strong foundation for inventory management, it becomes imperative for you to switch to centralized inventory management software. A competent software will help automate all the processes, which in turn will help regulate inventory management. 

 

  • Failing to track performance

Running a business efficiently requires regular performance tracking. If you don’t do so, your business might fall out of trend sooner than you know. In the same way, it is vital to track the performance of your inventory. 

The same can be done by using three inventory metrics - turnover, days to sell, and holding costs.

  1. Turnover is the total number of times the inventory is sold and is back for restocking in a given time. 
  2. Days to sell is the average time duration taken to sell a product. 
  3. Holding cost is the amount required to store an unsold product. 

Days to sell and holding costs are important factors to gauge how much money you are losing when the inventory is lying without being sold. With a BUSY software download, these tasks will look accessible to you.

 

Assess the need for inventory management software

There are various reasons why you should use an inventory management system, such as better planning, accurate reports and analysis, and much more. 

 

  • Helps with better planning and management of stocks

When you are in control of all your stock levels, you will manage your inventory better. Once you choose efficient inventory management, you can keep a better track of the seasonal changes, if any. The software will help you in forecasting data and evaluating any demand requirements.

 

  • Improves accuracy and saves time

Time management and using the optimum of available researches come from running business-related calls throughout the day. To be highly diligent with day-to-day business activities, it is vital to achieving accuracy. When it comes to inventory management, automation can help you achieve the accuracy you are aiming at. 

From restocking to tracking and distribution, the best inventory management software can help you with smooth management. When it comes to manual management and calculations, there are higher chances of errors, which can be avoided using the software. If you are wondering what the top inventory management software is, some of the best in the market will be listed at the end of this article. 

 

  • Helps in boosting productivity 

Once you automate the inventory management system, your assigned tasks will instinctively get managed. Once you install the software, all your inventory management work will be taken care of by the software, and your human resources can effectively pay attention to other business operations. In this way, centralized software can help boost the productivity of your manpower, which positively impacts your overall business. 

 

  • Helps improve customer satisfaction

Customer satisfaction is of prior importance for any business. With the best inventory management software, you can easily track the products in high demand and keep them in stock. Whenever customers come to the store looking for a specific product, they will quickly find it in your store. This will help improve customer loyalty, as well as build a robust brand-consumer relationship. All in all, this will boost your credibility in the market, and your business will get a lifelong customer.

 

List of the best inventory management software

You will find plenty of management software in the market. However, only a few will help your specific business requirements. It is always advisable to compare the features, price, customer service, customization features, and software updates before choosing one. Here are the top five inventory management systems that you can take a look at-

  • BUSY Software
  • Vyapar
  • Tally ERP
  • QuickBooks 
  • Zoho Inventory
  • Sleek Bill India

Now, the choice is yours. Go through your options minutely and make the choice that you feel fits your business perfectly. Like with BUSY software download, you will be able to manage your inventory like a pro seamlessly. It will also help you to keep track of all your inventory activities and other vital details. On the other hand, the other companies also provide similar features, and you can also check them out. Contact us if you can help you further with questions related to inventory management software.