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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

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.

http://inventory.ezinemark.com/real-time-inventory-management-16abec6ab23.html

Top Retail Industry Trends in 2013

Top Retail Industry Trends in 2013

There square measure varied sites, blogs and articles that predict what would be the merchandise or services trending in retail this year. we’ve place along our observations on the highest trends in retail for this year.

Health & Wellness

There square measure many merchandise and services during this class, that square measure being launched on a daily basis. The demand for such merchandise is additionally booming and expected to air the increase within the returning months. Specially post recession, this class has started in a very huge method with huge players like Enami, Dabur, etc. merchandise starting from anti-stress drinks, pills, organic skin care to natural merchandise.

With innovative merchandise being value-added to the present class, customers seeking such merchandise has conjointly augmented significantly and therefore the main criteria is that they’re receptive experiment. merchandise like protein and milk sugar free things have become more cost-effective and simply on the market for consumption over the counter with none prescription.

Automobiles

Cars and bikes square measure storming the markets each season. each automobile maker is making an attempt to woo the buyer with obvious offers. the center category dream of getting a automotive is currently a much bigger reality that this class is banking on. On the opposite hand, the rise within the fuel rates have shifted the demand from gas to diesel and additional therefore towards CNG. This year, we’ll see lots of hybrid and electrical cars within the market.

Baby Boomer merchandise

Inventions and innovations square measure abound and that they keep developing with merchandise that may create the aging folks look young and delightful. This class is growing in no time since the primary wave of baby boomers that flip sixty are within the tens of millions. They demand additional relevant and varied varieties of merchandise like gadgets, brain games, fitness things, sleep motor-assisted devices, etc. This has created thick opportunities for budding inventors to make merchandise that may be required for years to return. This class can see some new editions and rise in customers seeking such merchandise this year.

Video Game Apps

Now, this class has been growing in leaps and bounds. It gets even larger and higher with additional customers across the age teams difficult for additional such game apps. The affordability of sensible phones has once more well-tried to be associate degree impetus to the expansion of this class. withal, the game business continues to maneuver towards application based mostly play as additional and additional folks transfer games on to their phones/computers. This has resulted in a very decline of entire game console that don’t seem to be moveable.

Consumer Electronics

The demand is that this class has unchanged. This remains a high mover for all retail chains and e-commerce sites. As per a study organized by the buyer physics Association, sensible phones, tablets, PC’s and LED’s can still be well-liked. Although, they’re going to become cheaper with additional brands fighting to extend their market share. the opposite trade complimentary to shopper physics would be the accessories for these things. they might be protecting covers, headsets, etc which can still be in demand.

External factors like the economy associate degreed budget might conjointly alter the markets in retail however even then customers can keep shopping for as looking is an exclusive diversion that they fancy to the core.

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Usefulness of Retail Inventory Management System in Providing Customer Demand Satisfaction

Usefulness of Retail Inventory Management System in Providing Customer Demand Satisfaction

In today’s market there are numerous items that have come up and tend to create a place of warfare among them. Not only at the market, but the war is also seen to be fought at places outside the market. All the companies related to business-to-customer transactions aim at drawing more and more customers towards themselves. All over, the business to customer relations is being fostered with the help of retail inventory management system. This is because of the capability to satisfy the requirements of the market, especially the cost. Cost is a key factor in deciding the sale of a particular item in the market.

Anyone who has enough understanding of the retail business process can understand the effects of supply chain management on the growth or downfall of the companies. Supply chain managers are now with constant efforts to cope up with issues that lead to sever uncertainties in the transactions of businesses, especially in terms of costs. There are various aspects of retail inventory management. It strives with the supply chain and enables the inventory planning that leads to retail software solutions in terms of the distribution of goods and in regard to sale points.

Sometimes, the retail inventory management system may also require some critical inputs in order to produce the desired output. The criticality of the inputs depends of the inventory management situations. The results that are obtained in response to critical inputs are good to bring about efficient resource usage and higher ranges of profit. The market cannot be forecasted without having any feedbacks about the market demand. Therefore it is highly essential to forecast the demand. The demand of any product varies with the respective seasons. Sometimes it may also differ based on the promotional offers and the trends of acceptance of the product. Here the main work of the retails inventory management is to pose balance between the levels of stocks in the industry and the satisfaction of customer demands.

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