When you’re a product-based company, your inventory is the centerpiece of your business. But managing that inventory can be one of the most challenging and costly aspects of running a business. When left unaccounted for, the unexpected and hidden costs involved can threaten your budget. While you can be proactive about monitoring your inventory, leveraging an inventory management system is one of the most effective ways take control of your inventory and make smarter business decisions.
Using various forms of technology, inventory management systems track sales and inventory to streamline the management process. These systems communicate in real time with vendors, merchants, and suppliers to minimize inventory out-of-stocks and shrinkage, as well as provide staff accountability.
Here are four ways an inventory management system can assist in automating processes, allowing you to manage your inventory better to prevent future losses and minimize costs.
Decrease Human Error
An automated warehouse eliminates data entry errors and improves accuracy. Although some businesses manually record inventory as a means to cut costs, doing so often creates extra work and additional room for error, which can end up costing businesses even more. Automated systems keep stock information accurate throughout the inventory’s lifecycle, from delivery at your store or warehouse to customer purchase.
Improve Efficiency
Inventory management systems help eliminate manual processes, saving time and improving your business’s efficiency and productivity. Without the need to spend hours inputting data, your employees can focus on other, more important, areas of business, such as assisting customers. These systems can also improve the customer experience because employees are able to accurately look up inventory at their store or one nearby. With an accurate and efficient inventory process from point-of-sale to delivery, the possibility of lost sales can be minimized.
Prioritize Your Needs
Inventory systems track your current and predicted levels of stock, giving businesses the ability to understand what it is they need and don’t need to order and identifying which items need the most attention. With this information, businesses can more effectively prevent shortages and costly overstock, which can otherwise cause costly cash flow problems.
Improve Your Bottom Line
When implemented successfully, an inventory management system allows businesses to achieve optimal inventory levels, which keep businesses from purchasing large amounts of inventory at once. These systems help reduce handling and holding costs and allowing businesses to order just enough inventory to fill consumer demand. According to Entrepreneur, companies can increase their profitability by 30% through careful inventory management.
Inventory management is much more than keeping shelves stocked. Inventory management systems can assist your business in this laborious task and ultimately help you increase your profit, giving you a competitive advantage over your competition. To learn about inventory management systems or for more information about how Worldlink can help you with your logistical management needs, contact us directly or follow us on LinkedIn!