Category Archives: Inventory Management

Tips to Manage Inventory

Tips to Manage Inventory

Do you have difficulty in managing inventory? Don’t you manage to track the goods you are buying and selling after that? Aren’t you aware which time to order items, or are you unable to maintain your stock in safe condition? The following tips may be helpful for you.

 

1. Keep track: This is the most important task in order to manage your inventory. You need to keep records in a systematic manner. If you do not have an account of your sales volume, as well as your current stock level, you will never know when and how much to reorder. It is recommended that you keep an ordering period, that is, a time frame after which you will make your next order. Your tracking should be based on this unit of time. You can track each item in the following manner:

 

• Average Sales: How many articles do you think you will sell during a particular time frame (ordering period)?

• Maximum Sales: What is the maximum quantity that you think you will sell?

• Bulk Order Quantity: How many articles do you need to order in bulk at one time?

• Order Lead Time: From the day you have placed the order, what is the time taken to receive the shipment?

• Quantity On Hand: How many articles do you presently have in stock?

• Quantity On Order: How many articles have you presently ordered for?

 

The above data can be stored on an Excel sheet and constantly updated. So, instead of clearing up items that you now consider as junk, it is better to be organized.

 

2. When to Order: Once you are aware of how many items you have in stock, and which items are running out, you need to know when to make a reorder. First, decide on the ordering period, that is, after how long you will make a reorder. It could be weekly, monthly, or bi-monthly. You should ensure that you maintain a minimum stock level at the end of the present ordering period, which is enough to carry you through till the next ordering period.

 

How do you know it is time to reorder?

Add the quantity of items that you already have (Quantity on Hand) to the amount that you have ordered for (Quantity on Order), which is temporarily called Quantity Available.

 

Now, you will still be selling until the fresh stock arrives, so subtract the Lead Time Sales from the Quantity Available. If this amount is less than the minimum stocking level (Time Lead Sales minus the Safety Quantity), it implies that you have to reorder. This final amount is termed as Quantity Available.

 

How do you know how much to order?

Subtract the Quantity Available from the minimum stock level.

 

Take a note of few terms related to stocking:

• Safety Quantity: Average Sales is subtracted from Maximum Sales. This quantity is the minimum quantity of items that you have when there is more sales than the usual amount.
• Time Lead Sales: The Average Sales multiplied by the Order Lead Time.

 

3. Quantity on Hand: It is always recommended that you physically check your inventory just to ensure that the data in your software matches up to what is really there. This allows you to make adjustments in the case of unexpected losses, which can happen owing to theft or breakage. If these losses are not accounted for, keeping track using your software will be futile.

 

Note that if your ordering period is long, you need to have enough inventory in stock. However, be sure that there is not too much inventory for fear of the products perishing or crossing their expiration date. Besides, you will be investing more capital and covering insurance and management costs.

 

4. Sell Junk: One way to get rid of inventory that you feel is junk is to sell it to a vendor. You will not only be clearing out unwanted stock, but you will also not suffer a complete loss.

 

5. First In, First Out: If you are selling products that have an expiration date, it is recommended that you clear the older stock first. In other words, put the items that have a later expiration date behind the ones that will expire shortly.

 

6. Security: Ensure to keep your inventory safe from staff members as well as outside intruders. Stock that is more valuable than others need extra security and should be delivered to a safe place. Make sure that your staff is trained to look out for thieves, who usually work in groups.

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Inventory Management Software(2)

Inventory Management Software

When searching for inventory management software which stands head and shoulders above all market competitors it is crucial that you ensure that it is affordable, resourceful and dependable. There are so many facets of inventory management software that it is really important to guarantee that all bases are covered and no stone is left unturned in your aim to secure inventory management software which is beneficial and productive. It is imperative that inventory management software does not break down and malfunction unexpectedly as this is so disappointing and frustrating. If you are in doubt as to where to go to in order to secure inventory management software which is second to none then there is no one better equipped than warehouse-management.co.uk.

Our fantastic inventory management software is ideal if you are looking for a simple solution to stock control problems. Inventory Management Software helps you stay on top of things and keep organised and well-prepared. You will overcome even the most insurmountable of objects with ease and carry out complex tasks with efficiency and competency with this inventory management software as it is so reliable and rewarding. We pride ourselves on our exceptional client services and committed, customer focused approach when it comes to inventory management software and are happy to share our wealth of knowledge and expertise with you if you have any reservations or queries regarding inventory management software that need answering straightaway.

If you need to tweak or adjust inventory management software then that is absolutely no problem at all; we are always on hand to help! Our team of seasoned specialists are so well versed in all aspects of inventory management software and really know what we are doing. Inventory management software does not get any better than this! You can take orders on the move and keep a note of where they are with inventory management software and it is so accurate, precise and exacting. Your working life has never been so smooth running. Profits will increase radically and your clientele will expand dramatically if you take advantage of our unbeatable inventory management software solutions. It doesn’t matter if you are a small, family run unit or a large, well known corporation; inventory management software is all encompassing and is a useful and valuable device no matter how large or small your office, warehouse or point of sale is.

Cost effective inventory management software from http://www.warehouse-management.co.uk is in such high demand at the moment as it makes time consuming duties so much quicker and is so structured and ordered. This Stock Control System keeps things ticking along nicely and you will reap the rewards straightaway.

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The Benefits of Using MYOB RetailManager in Inventory Management

The Benefits of Using MYOB RetailManager in Inventory Management

Inventory management in small and medium size businesses, like grocery stores, pharmacies and convenience stores, is very challenging. Business owners will find it difficult to handle all aspects of inventory management by themselves. Delegating tasks to people is necessary but getting the right personnel to handle crucial business operations is costly and risky. There is a growing need to computerise and automate all aspects of inventory management and using customised software like MYOB RetailManager can make inventory management efficient and reliable.

The MYOB RetailManager is a part of MYOB’s custom solutions suite. Businesses have implemented this software to address the issues affecting inventory management such as asset management, inventory forecasting, valuation and price forecasting, quality management and supply-demand assessment.

This advanced retail management and point of sale system is designed specifically for companies who want to keep track of their performance and manage all aspects of their inventory. The benefits of implementing automated systems can make businesses increase productivity and efficiency.

Automation of Tasks

MYOB RetailManager allows the automation of key inventory management tasks from supply chain management to the delivery of products. Sales processing is fast and efficient since tasks are automated.

Customised MYOB Add On Solutions

Inventory management is much easier with the inclusion of MYOB add on solutions such as software installation, comprehensive on-site training, integration of MYOB RetailManager to other applications, and technical support.

MYOB Certified Consultant

Hiring a certified IT professional with high level of knowledge, skill and experience with MYOB RetailManager is a very important. A MYOB certified consultant trains key business personnel that will handle the company’s inventory management system. They can also help customise the company’s retail management system according to its requirements and needs.

IT Integration

Integration of information technology features makes inventory management more efficient. These features include database systems and electronic funds transfer at point of sale.

Reliable Customer Marketing Functions

MYOB RetailManager allows you to target customers with special offers, promotions and newsletters. In this way, the software allows you to build relationships and encourage customers to buy your products.

Point of Sales Hardware Compatibility

Using the point of sales hardware and peripherals is easy because the MYOB retail manager system is compatible with most barcode scanners, laser and docket printers, electronic cash drawer, customer pole displays and scales.

Detailed Reporting and Tracking

MYOB RetailManager provides customised reporting and detailed tracking functions that allow you to assess, examine and evaluate stocks, sales, profit, GST, suppliers, customers and staff.

Quick Sales Processing

Processing sales takes less time as it allows you to handle types of sales and payment options. It handles discounts, gift vouchers, quotes, special orders, and record sales using multiple tender types.

Small and medium businesses are looking for efficient systems that provide them business management capabilities such as inventory management, resource allocation and sales processing. However, there is a need to hire a MYOB certified consultant that provides the best MYOB training Sydney has to offer.

One prominent MYOB Sydney provider that services business quickly and professionally is Computer Technology Matters. They offer premium services such as free initial consultation, software installation and continued training and technical support from its qualified personnel.

Computer Technology Matters helps small and medium businesses in Australia achieve optimum sales, inventory and resources management capabilities by providing MYOB RetailManager and customised MYOB Accounting software and solutions.

http://www.sooperarticles.com/business-articles/management-articles/benefits-using-myob-retailmanager-inventory-management-131404.html

The Contributions and Limitations of Automated Retail Inventory Management Systems

The Contributions and Limitations of Automated Retail Inventory Management Systems

Some industry experts agree that it is often the retail sector that faces complicated issues in terms of accounting and inventory management. These departments are in charge of overseeing cash flow as well as the inventory required to determine periodic revenues. Without an efficient system that can aid these tasks, a company can never achieve utmost customer satisfaction and the highest possible position in the market.

With that, experts recommend the use of advanced retail inventory management systems. Preferably, businesses can use an automated accounting system that does not only give accurate results, but also makes inventories and computations a whole lot easier. With such an electronic database, companies can monitor and process the entire retail costs, product types, as well as suggested retail prices. This can also aid managers in viewing and keeping track of all important aspects of the trading process. Upon having an efficient management system, businesses can analyze sales trends and gear up to secure their place in the industry.

Automated inventory programs usually have uniquely-designed database that can display inputted data in a tabular form. The tables are divided into various parts that can allow easier and more methodic categorization of the company’s departments, available or stored goods, and their costs. There are some databases that enable modification to input remarks or descriptions of demand status and other important sales details. Because of that, businesses can efficiently deliver to their customers and accordingly earn their patronage.

For many years, the significance of database system in retail inventory control has already been evident. In contrast to the tedious paper-based method, automating the processes reduces the burden of coming up with accurate computations and managing complicated formulas. The tasks that normally take hours can be completed in no time.

Most types of modern retail inventory control databases are integrated with point-of-sale systems to further ease up the tasks of clerks in recording items at the end of specific periods. With this particular feature, each product that runs through the POS scanner can be automatically encoded or enlisted together with their respective costs and other inventory information.

However, in spite of the rapid development in retail inventory management and the increase in use of automated systems, manual counting is still necessary for most stores. This is to double check the occurrence of unmonitored losses probably caused by theft and other factors. In the future, these databases and POS are expected to have features that can finally address these problems for improved efficiency and greater trading success.

http://inventory.ezinemark.com/the-contributions-and-limitations-of-automated-retail-inventory-management-systems-7d325d6549c2.html

Fishbowl Inventory Hosting Smoothens Inventory Management

Fishbowl Inventory Hosting Smoothens Inventory Management

A thriving business depends on various factors, one of which is a strong inventory management system. A complete inventory management system consists of everything from accurate record-keeping to shipping and receiving of products. Inventory management system that is properly effective and reliable can keep a company’s supply chain running easily and proficiently. However, there are many common inventory management problems that can arise.

Inventory management problems can hamper company’s profits and customer service. They can cost business additional money and can lead to an overstock of inventory and capital blockage. Most of these difficulties are generally due to poor inventory practices and out-dated systems. To get rid of inventory associated problems and to keep business risk free, enterprises are utilizing advance IT applications. The application used for reliable inventory management is Fishbowl inventory software.

Fishbowl Inventory is the most popular inventory management application for QuickBooks users. It’s also an amazing individual tool for organizations that are looking to track assets. Fishbowl is a robust system that provides both inventory management and accounting features.

It is quite beneficial for Wholesale Enterprises. Fishbowl inventory software tools: –

-Swiftly pick, pack and transport products.

-Prevent stock outs and over stock.

-Manage multiple locations smoothly.

It is also quite useful for the Manufacturers, it is able to:-

-Configure bill of materials

-Trace tens of thousands of parts.

-Integrate seamlessly with QuickBooks.

It also provides beneficial features for Warehouse Management solutions like: –

-Inventory accuracy.

-Reduce error in the receiving process.

-Enhances productivity.

Some other benefits include features like: – -Adjust inventory to assist cycle counting.

-Relocate inventory.

-Saves time and money with greater speed and efficiency.

-Keeps accurate financial records.

It is fine for huge enterprises to establish local IT network and maintain it but SMEs finds it difficult to spend big share of their resources on IT department. Therefore, SMEs opt to outsource there IT department to an application hosting service provider. These hosting service vendors host various business applications which include QuickBooks add-on software i.e. Fishbowl inventory.

Fishbowl inventory hosting provides multiple benefits to the clients. It saves their time, money and other resources. It takes away the trouble and expense of establishing and maintaining IT network. Apart from Fishbowl inventory hosting service provider offers multiple other benefits like: –

-Anytime anywhere access: – Fishbowl inventory hosting comes with anytime anywhere access to data. Users can access their data from any location with the help of an internet connected device. It gives the freedom to work without any time or location barrier. This improves users’ efficiency and provides them the comfort of working according to their choice.

-Multi-user access: – Multiple authenticated users can access the data simultaneously. This feature of Fishbowl inventory hosting improves collaboration between staff members. To keep the data secure, the accessibility to data can be restricted by log in ID and password.

-Data security: – To keep the data secure Application Hosting service provider uses latest tools and technology. They utilize techniques like SQL injection, 128 bit data encryption, etc.

-Data storage and backup: – Fishbowl Inventory Hosting service provider offers rolling data backup to their clients.

-Technical support: – Fishbowl on cloud comes with free and unlimited technical support service.

All these beneficial features make inventory smooth and hassle free.

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What You Need to Know About Inventory Management System

What You Need to Know About Inventory Management System

We know how valuable inventory is to every operation. It matters a lot from small to big businesses, and the fact that it is also hard to control and manage is certainly undeniable. If you have a manufacturing business, supply chain or a fast food shop, then you know how factors such as pilferage, administrative errors, physical damage and expiration of items can eat away your inventory. It can even greatly hamper the profit and affect the overall system of a company.

Your products are one of the most significant assets of your business. Assuring that your organization has proper stock of goods and a system that can manage all your merchandise correctly can make a huge difference in making the sale. From the manufacturing to the point of sale, the need for a sustainable inventory solution can reassure every company that there are enough products to sell for customers while managing the control of every resource.

Setting up an inventory management system can help you make the most of inventory by keeping costs under control.

What are its Features?

For Inventory Control and Warehouse

Makes inventory process faster as they are fully automated.Easy tracking of assets with check-in/ check-out system.Managing of asset costs from merchandise to stocks with precise counting.Provides various alternatives to track all assets including supplier, client information, count of merchandise, account numbers, sales and more.Manage multiple inventories at the same time and being able to view real time records.Lower inventory loss and increase sales and operational efficienciesEnhance customer satisfaction levels with availability of productsIncrease product marginsGain control on replenishment of stocks while managing overstocks

For Purchasing Department

Modernize requisition procedure and enhance faster communication with vendors with Inventory Management Solution that can record transaction, reordering dates and other relevant informationEradicate inefficiency with online purchasingEasily identify costs, loss and profits. Avoids manual errors done in purchasing, receiving and other accounting records. -For Manufacturing Division -Offers contemporary solution of managing correct orders. Manufacturing sector can now seamlessly work with back office divisions. -For Demand Planning -Accurately give data for reordering of stocks based on sales and historical dataAutomatically compute supply plan for the organization -What are its Benefits?

Offer real-time data of demands, supply, costs, profits and trends in an operationReduce manual inventory. Makes work faster and avoids manual error or computations.Managing margins with complete data to cost of inventory and revenues.It can satisfy the demands of any industry for inventory and purchasingMeet your customer’s demands and help improve customer serviceEnhance relationships with clients, vendors, and partners in the business

I have been writing for many years now. In fact my work had already appeared in various books and websites. Today I featured what you need to know about Inventory Management System so people will be aware of the importance and its applications for businesses.

http://www.sooperarticles.com/business-articles/project-management-articles/what-you-need-know-about-inventory-management-system-1072220.html

Shopster vs Doba – Battle of the Best Dropshippers

Shopster vs Doba – Battle of the Best Dropshippers

Over the years, several dropship websites have cropped up promising all sorts of ways to save on your ecommerce needs. As a technique to streamline supply chain management, dropshipping can become a valuable asset to both new and established online merchants.

The basic premise of dropshipping is simple. Merchants create a website where they can sell items. They source their inventory from a dropship supplier. The inventory, which is not on-hand with the merchant, is displayed on the virtual shelves. Once bought by the end-consumer, the merchant then places the order on through to the dropship supplier. The dropshipper either white-labels the item or uses private labeling. This is shipped directly to the buyer.

Dropshipping doesn’t just create a more efficient and effective online sales process, it actually takes out some major risks and reduces the overall cost to the merchant. For instance, the cost of warehousing, handling and shipping are already transferred to the dropshipper. On the risk side, the business will always be on the positive cashflow side, there is no spoilage or slow inventory movement to deal with given that the purchase is already made and paid for by the buyer for all items being ordered.

In this world of dropshipping, two big players top all others: Doba (http://www.doba.com/) and Shopster (http://www.shopster.com). Put head to head, here’s how the two compare:

Products: Both are pretty much the same, offering a wide variety of products in different categories. They both offer approximately 1.5 million products for dropshipping.

Price: Both companies have free trial versions. If you want to upgrade, the lowest package offered by Shopster is at $39.95 per month, while Doba offers it at $49.95 per month.

Reliability: Both websites are eBay Certified Service Providers, making them a good choice to work with. eBay has less than 50 service providers that are certified, and both have this privilege.

Tools: Doba has API capabilities while Shopster has listing tools for eBay and Amazon. These are important factors for choosing a dropshipper as it allows you to expand your distribution channels. Instead of just listing dropshipped products in your online store, you can attract more buyers for your products through other means. In addition to these listing tools, Shopster also offers an Inventory Management Tool. It allows you to know the status of your orders and trace how it goes from one point to another.

Connections: The major advantage of Shopster over Doba is the connection to direct buyers via a free online store. On top of that, Shopster also created a social network to help users build powerful business relationships with other retailers.

Customer Service: Both are pretty much at level when it comes to helping out clients. Give them a call and you’ll see for yourself what kind of companies they are. Shopster empowers clients to work on their own given the breadth of knowledge they offer in their Help section, but they still support you in your needs.

Usability: When it comes to navigating the respective sites to set up your store and start using their services. Shopster is a notch above Doba. The interface is easy to manipulate and orders can come and go with ease. The tools are also easily accessible, which make selling online so much easier.

All in all, Shopster wins in this head-to-head between the best dropshippers. In terms of price, tools and usability it is a mile ahead. The free sign up with Shopster comes with an online storefront and the inventory management tool . With access to these integrated solutions, it enables the users to sell online and start earning profits right away.

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The essence of inventory management for a contemporary organization

The essence of inventory management for a contemporary organization

The practice is needed as a part of supply chain network to protect the production system against any kind of disturbance. Moreover, it also prevents the system from running out of stock, materials and goods. Fundamentally, inventory handling focuses on asset management, replenishment lead time, inventory forecasting, inventory valuation, inventory carrying cost, forecast of future asset management prices, inventory visibility, physical inventory and the space available for its accommodation, demand forecasting as well as return of defective goods.

 

The primary objective of inventory handling is to strike a balance between the contending requirements for attaining optimum inventory levels. Since the process is continuous, it demands a shift from business needs. This also helps in accommodating the needs of larger environment. Inventory handling tries to maintain an extensive collection of merchandise. In addition, the practice also helps in controlling issues like shipping, ordering and handling materials. Moreover, the material management and tracking aspects of inventory handling also incorporate feature like supervision of materials which are moved in or out of warehouses and reconciliation of inventory balances. Other areas of inventory management include lot tracking and cycle counting support.

 

No matter what is the nature or size of your business, inventory management always offers a competitive edge. Since the practice ensures goal fulfillment, visibility and efficient management, it allows comparative pricing on a customer-to-customer basis. In addition, inventory management helps business owners in making strategic decisions about the kind of inventory that must be carried for accommodating inventory management processes.

 

Not only does inventory management increase the number of satisfied customers for an organization, but also aims at reducing the operating costs. Moreover, inventory handling facilitates the management of a business with inventory standards as well as costs. Companies operating in processing and manufacturing industries need complicated as well as simplified processes of management control. Inventory management helps in streamlining such concerns through efficient distribution as well as compliance for improvement of software and other procedures.

 

Last but not the least, inventory handling also helps in establishing a replenishment strategy for various items present in warehouses. Moreover, it also outlines specified guidelines by controlling ongoing dead stock and excess inventory. In a nutshell, it would not be unfair to state that inventory management imparts a strategic competitive advantage to businesses by providing a user-friendly stock analysis tool that offers prompt information.

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Purchasing Management Software A Brilliant Way to Speed Up Inventory Management

Purchasing Management Software A Brilliant Way to Speed Up Inventory Management

If you are a retail business or an enterprise that is involved in providing goods to either consumers or other businesses—or both—then you have inventory. Inventory is defined as any good that is within a physical space and that belongs to a business. Thus, it includes raw materials, items that are already work in progress, and those that are finished and/or ready for delivery.

All goods in inventory carry a cost. After all, you need to pay for their maintenance and storage, even if you own the space and doing the upkeep yourself. It is because of the associated costs that you have to manage them very well. You may need purchasing management software.

But what Is the Big Deal with Inventory?

Better yet, why is its management so important that you would require investing on purchasing inventory software? Here is an illustration.

Let us assume that you are selling cheap phones, and you have converted your garage into a mini-warehouse and office to save on rent, so you do not need to charge it to your inventory. However, since you have to ensure that all the goods continue to be in perfect condition once they are sold and that they are safe from theft, you tap on your local surveillance company that charges you around $200 a month.

Phones are sensitive so you also have to install an air-conditioning unit, which increases your utility bill by 5%. On the average, a phone stays as an inventory for about a month before it gets sold.

If you do not use purchasing management software, any of the following may happen to you:

-You will not know how to charge those business costs so you just decide to absorb them. That would have been wise thinking if it is not for the fact that business spending should always be separate with personal ones for better accounting. -Because you have very little idea of your inventory costs, your products turn out to be underpriced. In the end, you are not gaining any profit even if you can physically receive revenues. -You commit some of the most common but crucial inventory management mistakes including charging a product twice for the inventory costs.

What the Purchasing Inventory Software Can Do for You

One of the biggest reasons to use purchasing inventory software is to let you manage this very important aspect of business more efficiently.

You now get to charge the right costs for inventory, but you can also keep track of its flow. The software can work alongside other accounting applications for a more cohesive and accurate reporting and picture of the health of your business. Moreover, the software supports your business goals by ensuring you have the right ROI figures.

Using the purchasing management software also automates the process, decreasing time spent on routine tasks. Less time means less use of resources, and that translates to significant savings for the business. Hence, investing on this type of program is a truly win-win decision.

Resource Box

Automate your purchasing process today and have more time leading, marketing, and building revenues and cash flows. Invest in customizable purchasing management software http://bellwethercorp.com/web-based-series/ from Bellwether. When you invest on its purchasing inventory software, you also invest on the company’s over 28 years’ experience in requisition and purchasing management.

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Real Time Inventory Management

Real Time Inventory Management

A lot has been said about inventory management, but it still isn’t complete without a discussion on real time inventory management.

 

Inventory is often proclaimed to be a necessary evil especially in the retail business. Who would want to risk a customer loss arising out of product shortage? If they want it, you ought to have enough to sell. But the classic question has always been regarding how much is enough.

 

To understand its implications, the very first realization that one ought to have is that inventory costs are not only those that you see in everyday life. They extend much beyond the everyday costs in the form of additional money that you need to put in to keep the business running. Inventory is the number one cash eater.

 

What Is Real Time Inventory Management?

Real Time Inventory Management basically means managing inventory as and when it depletes. A large part of this strategy depends on technology, which is why its initial cost scares some skeptics.

 

The technology involved is basically RFID chips and barcodes. They keep a track of all of the inventory that is coming in and out of the store. The benefits of being able to do so can be many. All you need to do is to ensure that you get a few things in place. You will need to know:

  -How many units do I order? -How much time does the supplier need to fulfill this order? -What point am I going to order?

 

Most retailers order in a time bound manner. They always seem to have enough of what is not in demand in the market.

 

It is important to understand the value real time information adds to a supply chain. You are not forecasting anything or relying on any guesses.

Rather, you are reading the mind of the market and acting accordingly. At the same time apart from inventory costs you would cut down on a lot of storage and administrative costs also since you wouldn’t need a huge warehouse or a stock clerk.

 

How It Works

Reduces fixed costs: Fixed costs are a burden on a retailer’s shoulder. They drain profits. With the help of a real time inventory management system, you can bring them down to the minimal level. You could make your organization much leaner by virtually eliminating the purchase department. They won’t need to forecast the demand or place orders. All you need to have your suppliers ready; the system will do the rest. Also, since it is largely automated, the chances of error are much less. Machines are not as forgetful as humans are.

 

It is not uncommon to be stuck with products that your customers no longer want. Demands change faster than you can imagine. Now imagine selling multiple variants of multiple products, you are bound to be left stuck with some unsold inventory. With real time inventory management, you can gauge the pulse of the market by keeping a track of what is sold and when it needs to be ordered, thereby reducing these costs to a bare minimum.

 

Eliminates Stock Outs: Stock outs and shortages are results of errors in forecasting demand. While most of the earlier discussion was about reforming the methods of forecasting, real time inventory management has bought a new perspective. It eliminates the need to forecast and thereby eliminates all the errors associated with it. If the demand runs fast, so does you’re ordering cycle. This is called flexibility of the supply chain.

 

Improves Customer Relations: A recent study has exposed that there are some “Universal Customer Expectations” that the customer expects from every seller they deal with. These are maximum choice, maximum value at lowest price. With the help of real time inventory management, you can easily offer all three.

 

Simplifies Work Processes: Real time inventory management significantly reduces the error rate. Since a lot of work is automated, there is less chance of error. Moreover all your processes run on facts rather than on forecasted projections.

 

How to Choose?

There are many options available in the market today. Each business is different and therefore by extension the inventory needs of each of them are also unique. Real time inventory management helps any business.

 

Modularity: It is essential that the real time inventory management solution that you look out for is modular. Modularity basically means the ability to choose the specific features that you may desire rather than taking the whole package.

 

Modularity is so important because these inventory management systems are means to serve the interests of many organizations that have diverse business interests. You may not require half of their solution but the other half maybe invaluable to you. So modularity allows you to choose the solution that you think is best.

 

Ease of Implementation: Inventory management systems are easier to procure than to implement. A lot of these systems are complex and require training the staff, or sometimes you may have to hire new staff skilled enough to take care of this. So, the choice is, whether the system will save you enough money to offset the increased training costs and still be valuable. Do not forget to consider the time value of money.

 

Integration: The ability to measure the changes gives the manager the knowledge of what’s working and what is not, and it is this ability which must be harnessed to evaluate the efficiency of the inventory management system.

 

So it is essential that the system integrates with accounting, human resources and other such systems, which are generally used in an organization.

 

A very common mistake is to draw inventory reports from the new system and continue with financials and other reports in the previous way. This gives an inaccurate position of how effectively the materials, staff, money and other resources are employed.

 

In the End

Big businesses and small businesses generally have an efficiency gap between them with the bigger players being better. It is imperative that a small business grows and thrives by adapting to gain a competitive edge over smaller competitors.

 

Real time inventory management is still a relatively unknown commodity. So unleash the potential of this powerful tool and gain competitive advantage.

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