Monitoring, tracking, and managing goods in a warehouse can be a real challenge. Many companies think that it is enough to have an inventory management software system, where their staff can manually enter purchases, sales, and goods in transit.
However, if your staff manually enters data into your inventory management system, then there can be delays and mismatches. For damage control, you have to induce more manpower and hours, leading to inefficiencies and losses. To manage automated operations and maintain inventory levels under control, distribution centers need smart inventory management systems.
What is Inventory Management System?
An inventory management system (IMS) is a built-in software solution that tracks items, stocks, orders, and fulfilment for or to customers and suppliers. Smart inventory management software system aids in organizing information, maintaining inventories efficiently, and simplifying the product pricing process.
Your company will profit more and remain competitive with the support of a smart inventory management system. Here are some of the advantages:
Predicted Demand and Avoid Deadstock
If you do not have a real-time update of your inventory, then you can lose customers. On the other hand, if you have too much inventory, then it will lead to dead stock in future. A smart inventory management system will help you cut down costs and boost business. Plus, the sophisticated reporting and analytics features of such software will help you predict future inventory needs and stay ahead of the competition.
Optimize Storage Cost
Maintaining optimal inventory levels allows businesses to manage cash flow and leave more money available for other responsibilities. An intelligent inventory management solution enables you to save money by reducing storage costs, and product waste and improving accounting.
Real-time Data on a Centralized Database
Inconsistency in data entry results in missing, erroneous, or duplicate data, sapping the efficiency of your operations. Cloud-based intelligent inventory management systems store data in a centralised database, allowing stock changes to be reflected in real time across all channels. An automated system that updates the database itself is more efficient and accurate than manual data entry.
Real-time Alerts
Analytics-based inventory management helps businesses maximize profit, maintain optimal stock levels, and prevent instances when items are unavailable when you need them. Instead of manually checking the inventory levels, inventory and warehouse management software solutions can help you create reminders to notify you when the inventories drop below a specified level.
More Collaborative & Efficient Working
Smart inventory management system enables data syncing across all channels, modules, and apps you use. It allows your teams to collaborate through role-based access of a centralized database.
RFID vs QR-based Inventory Tracking
Which is better for tracking inventory? – RFID or QR codes
It turns out there is no direct answer to this question. We have to walk down the diplomatic road and say – “it depends”.
While RFID is a more sophisticated way of tracking, QR codes are easy and convenient – requiring relatively simple coding and fewer hardware components. QR code-based warehouse management solutions are simple and efficient. They are speedy and require minimal hardware (unlike RFID).
Conclusion
Smart inventory management solution will help your company become more profitable and work efficiently, while also remain competitive.
Apart from building resilience, you can handle the inefficiencies in supply chain readily. Such tools aid your business in gaining a firm grip on the supply chain, efficient stock management, timely deliveries, and better business relations.