Instead of using an ad-hoc inventory management system, you should seriously consider switching to an advanced inventory program. A more common name for an inventory program is inventory software. What is inventory software? That is certainly a good place to start.
Inventory software is either a desktop or online digital solution that allows businesses to store their inventory data in an organized and secure manner. Parts and products are tagged and tracked by serial number, lot number, expiration date, and/or many other criteria. When inventory levels get low, the software can automatically send notifications to the proper staff members to reorder those items. It can even generate purchase orders and issue them on its own.
So inventory software is a tool that helps businesses keep their inventory in equilibrium so they do not wind up with too many or too few items in stock while also balancing other concerns, such as manufacturing, warehouse design, picking, packing, shipping, and receiving.
There are many advantages of using an established inventory program rather than trying to create one on your own. Here are three of the biggest reasons:1. SPEED UP INVENTORY MANAGEMENT
Most inventory tasks go much faster with the aid of inventory software. For instance, scanning products with a barcode scanner saves a lot of time compared to writing product numbers and quantities by hand and then manually inputting those numbers into a computer. Not only is it inefficient to do this by hand, but it is also much more likely that employees will make typos and other errors.
With an inventory program, receiving and selling products becomes less tiresome because most of the work is done for you. You can automatically generate invoices, sales orders, bills of materials, and many other documents by simply using a mobile wireless device.2. INTEGRATE WITH QUICKBOOKS
When looking at inventory programs, make sure you choose one that integrates with QuickBooks. QuickBooks is the most popular accounting software for small businesses, and accounting and inventory management go hand in hand. When you order a product, you want that to be recorded in QuickBooks as both an account payable and a new asset.
If your inventory program integrates with QuickBooks, you will not have to worry about entering the same information twice; it will automatically update QuickBooks every time you buy or sell products. Again, we should note that double data entry increases the risk of errors finding their way into your numbers, which can lead to disastrous results. Keep your inventory and accounting files in sync by integrating them together.3. SAVE MONEY
By cutting down on inventory errors and making inventory management less time consuming, you can save a lot of money. Inventory programs let you know how much inventory you need to carry, when to reorder products, and many other things that help you cut unnecessary costs. Carrying costs can be a big concern and by cutting down on them, not only do you save space in the warehouse, but you also ensure that fewer items become obsolete or reach their expiration date before they can be sold or consumed.
To learn more about the benefits of using inventory programs, sign up for a free trial of Fishbowl Manufacturing or Fishbowl Warehouse.