Main Functions of Inventory Management Software
Inventory management software refers to technology designed to provide organizations with comprehensive solutions for their inventory management needs. The importance of inventory management software is realized but not as emphasized as it should be, given the fact that inefficiencies and poor management in this segment can contribute to business failure.
What is the Purpose of Inventory Management Software?
The purpose of this technology is to help organizations add enhanced efficiency to operational processes and keep costs under control by tracking orders and inventory levels, managing cash flow, reducing clutter and waste, and so much more.
The primary function of inventory is to provide operations with a consistent supply of materials. This software helps entities find the balance between too little and too much stock, so they never run out, which will help boost profitability by improving cash flow and enhancing the functionality of various operations within an organization.
What are the Main Functions of Inventory Management Software?
The main functions of inventory management software include:
- Streamlined Inventory Management – One of the most important functions of this software is the simplification of inventory management. The ease in which inventory can be tracked enables better decision-making via heightened visibility and accuracy, saving you time and money.
- Increased productivity and efficiency – Automation is the most effective way to boost productivity and efficiency. Automating tedious and repetitive tasks, such as managing stock, printing shipping labels, processing orders, and updating listings, free up hours of your day so you can focus on tasks that directly help grow your business.
- Improved stock management – Maintaining appropriate levels of inventory is extremely important to the success of your business. Running out of inventory not only hurts your bottom line, but it can disappoint customers, which could prompt them to leave critical reviews and/or take their business to your competitors. Having too much stock could take up essential space in your warehouse, leaving little space for other goods, and increase the chances of inventory becoming damaged. Inventory management software tracks inventory levels and will automatically reorder goods based on the pre-determined benchmarks you set.
- Boost profitability – The automated component of the software is the main contributing factor to the boost in profitability. Each year, businesses miss out on revenue due to factors such as human error and roles that could be better managed with automation. Incorporating automation into various processes could mitigate potential human-error-related losses, reduce expenses, and boost profitability almost instantaneously.
- Inventory reporting – Inventory management software also comes equipped with inventory reporting, which gives you real-time updates concerning inventory levels, validation, and forecast.
- Quality management – This technology can also track and monitor issues such as delayed or lost shipments, damaged packages, and other factors that impact quality.
- Serial number tracking – Another function that comes with inventory management software is serial number tracking. Essentially, this feature manages serial numbers from order to delivery, and permanently stores that information in a database for future reference.
- All-inclusive solution – Inventory management software is an all-encompassing solution that facilitates listings, orders, and shipping procedures to simplify the entire shipping process.
Options for Inventory Management Software
Zoho Inventory is an amazing tool for small business owners. This platform offers comprehensive plans that allow customers to organize dropshipping, manage multi-currency transactions, and accept backorders on items that are out of stock.
Fishbowl Manufacturing is the perfect tool for manufacturing businesses. This platform possesses advanced production management features that let you create advanced BOMs (bills of material), track itemized inventory costs, and group work orders across multiple stages of production.
Upserve provides dynamic inventory features to meet the unique needs of restaurants. The most notable features include a function that keeps track of expiration dates, supply chain needs (i.e., refrigerated shipping), and a recipe inventory that stores the ingredients and their precise amounts for every dish.
Conclusion: Main Functions of Inventory Management Software
Inventory management software can help your business signifigantly in saving both time and money. By learning the purpose and functions of inventory management software and implementing it for your own business you will be one step closer to success.